Blog Post

Scottish Power, Npower, EDF and Eon all announce energy bill hikes to maximum allowed by the Energy Price Cap

Richard Simmonds • February 19, 2021

As predicted, several large energy suppliers have followed British Gas in hiking the energy bills their customers will have to pay from April 1st.

Maximum allowed

The millions of customers of EDF, Eon, Npower and Scottish Power will see their energy bills rise by £96 per year on average when the new Ofgem energy price cap begins in April.

All four large energy suppliers are raising their prices by the maximum allowed under the price cap a move that has raised concerns from consumer groups. Customers of those companies are being urged to look elsewhere to save money, potentially saving £200 a year.

The new price cap for standard variable tariffs, based on dual fuel usage, will rise by £96 per year from the previous record low level of £1,042 per year to £1,138 per year.

The cause for the rise has been pinned on rising wholesale energy prices, the introduction of new green policies and the ongoing impacts of the Covid-19 pandemic.

The price cap for prepayment meters will also rise by £87 per year from £1,069 to £1,156.

Market analysts are predicting that other major suppliers will also announce price hikes over the coming weeks.

“In the face of sharp increases in the costs to supply energy, we have already seen two suppliers collapse this year and as a sustainable, long-term business it is critical that we reflect the costs we face.

“We promise our customers that we will continue to offer a range of long-term, fixed tariffs, that guarantee a consistent price of energy for the duration of the tariff,” said an EDF spokesperson.

Also read: British Gas becomes the first large energy supplier to hike prices after price cap increase, others expected to follow

Millions affected

Millions of customers will be impacted by the energy bill hikes with Scottish Power saying that its 1.5 million customers will see increases to both their credit meter and prepaid meter energy bills.

E.on currently has 1.8 million customers on standard variable tariffs, EDF has 1.3 million and Npower has 900,000.

Also read: How to convince consumers to switch to a smaller energy supplier

Smaller Suppliers to benefit?

With consumers now likely to start looking for cheaper tariffs in earnest following this news smaller energy suppliers could snap up new customers.

By offering cheaper tariffs that typically undercut the prices offered by the larger suppliers and utilising excellent customer service smaller suppliers need to step up and advertise that they’re the best value for money.

January’s energy switching figures were the lowest since 2018 but as more price rises are announced the number of people looking to save cash will likely increase strongly in March and April.

Also read: Energy Switching fell to lowest level since 2018 in January but Energy Price Cap hike likely to spur a rebound

If you’re considering entering the energy supply market get in touch of Dyball today. Our team of industry experts can help you get started and give you the advice and services required to thrive in the energy supply market.