You may have seen in the news in recent weeks and months that energy prices are increasing across the energy industry and thought about what this means for you and what you pay for your energy.
Will my Bill increase?
If you are on a fixed tariff, your price will remain the same until the end date of your tariff, a fixed tariff gives you peace of mind and confidence that the price you pay for energy will remain the same. However, with winter coming your usage might increase which does affect your bill. To read more about how your usage impacts your bill, read here!
If you are near the end of your tariff
If your fixed tariff is coming to an end soon, you will most likely see an increase in your renewal price.
I'm at the end of my contract and my renewal price is a lot higher than my current monthly payments, why have my monthly payments increased so much?
- When we calculate your renewal price there are 2 elements that are used; your estimated annual usage and the tariff rates
- We understand the impact that price hikes may have, especially on those vulnerable, so if you are facing financial difficulty, please contact us to discuss a solution that works best for you.
Something to consider are our recently released 24 month tariffs. They are a great option if you are renewing as the price is lower than a 12 month tariff and locks in your price for longer, meaning you don't have to worry about any future increase in price for the length of your contract.
Why are prices increasing?
Rest assured, So Energy always tries to provide you the best price possible. The vast increase in wholesale costs (where we buy your energy) means that we are forced to increase the prices we charge you.
While we - and most energy suppliers - will pass any savings on to our customers and absorb rises in wholesale costs in order to keep things affordable, there are times when you’ll see an increase in what you’re paying. This is generally unavoidable, and as an energy supplier not something that we like having to do.
The increase in gas and electricity prices over the last month are driven by wholesale costs going up as a result of various socio-political and environmental factors across the world.
- Some of these factors include:
- A cold spring in Europe. As you’ll undoubtedly have noticed, spring this year didn’t trouble the mercury. Lower temperatures and less sunshine than expected - among other things - meant higher demands on stored energy, leaving less in storage to deal with the spike in demand outlined above, thus leading to higher prices.
- An increase in demand as the country recovers from the effects of Covid lockdowns. Businesses are opening again, public transport is back to full capacity, people are back in the office and so on as vestiges of normality continue to return. All of this requires energy, and this has created a spike in demand that requires supply.
- It’s been hotter elsewhere. While we experienced cooler temperatures in Europe, Asia experienced a hotter-than-usual summer. This, in turn, has resulted in higher demand for gas and electricity for cooling systems which, in turn, has also contributed to lower levels of available stored energy.
- Fire damage to a connector across the Channel restricts how much energy can be transferred from there
- Energy markets fluctuate all the time and our expectation is for this price increase trend to reduce over the next year.
Last updated: Thu, 21 Oct, 2021 at 9:19 AMPrint this page
Did you find it helpful?Send feedback