Just as we all thought we were in for a nice & relaxed end to the year, suddenly the world decides to plunge itself into chaos once more… Countrywide fuel shortages, utility bill hikes & energy firms dropping like flies have all provided sufficient fuel to keep the public’s ‘fire of fear’ roaring strong into 2022. But should you be worried? We’re here to break down what’s really going on.
What suppliers have ceased trading & who is taking over their supply?
· Green Network Energy (Feb 2021) – New Supplier: EDF
· Simplicity Energy (Feb 2021) – New Supplier: British Gas
· HUB Energy (Aug 2021) – New Supplier: E.ON Next
· PFP Energy (Sep 2021) – New Supplier: British Gas
· MoneyPlus Energy (Sep 2021) – New Supplier: British Gas
· Utility Point (Sep 2021) – New Supplier: EDF
· People’s Energy (Sep 2021) – New Supplier: British Gas
· Avro Energy (Sep 2021) – New Supplier: Octopus Energy
· Green (Sep 2021) – New Supplier: Shell Energy
· Enstroga (Sep 2021) – New Supplier: E.ON Next
· Symbio Energy (Sep 2021) – New Supplier: E.ON Next
· Igloo Energy (Sep 2021) – New Supplier: E.ON Next
What’s happening to my energy bill?
Ofgem have ensured that no one’s lights will be switched off during the period of transition between suppliers, the energy regulator are used to firms going bust! But this doesn’t mean you’ll still be paying the same as you were, as from October 1st 2021 the energy price cap (the maximum rate suppliers can charge for energy on default tariffs) has increased by 12%. This is compounded by the prediction of up to another 30% price increase as soon as April next year. The only people currently unaffected by the price cap changes are customers on fixed tariffs, but even those nearing the end of contract will be switched to a default tariff which meets the new cap.
What has caused all of this?
A perfect storm of global factors, starting with a massive rise in demand in gas due to both a cold winter in Europe & the reawakening of the Asian industrial machine post-Covid. This combined with numerous nuclear reactor outages, a broken undersea power cable system & the least windy summer since 1961 has led to the price of gas rising dramatically to almost £3.00, up 250% from the start of the year! The smaller energy firms simply cannot operate at these prices.
Can I change supplier myself?
Some energy companies are not taking on new customers at the moment because of the sheer scale of unrest throughout the sector, with almost 2 million people affected much of their focus is currently on handling all customers requiring transfer. The advice from Ofgem is to remain with your existing supplier for now if you can until the market is less turbulent.