News has just emerged that Power NI and SSE Airtricity have frozen household electricity prices until 2015, bringing a sigh of relief to customers before the winter hits. Power NI has more than 567,000 household customers giving it 72% of the energy market while SSE has a 20% share, which means a large majority of UK households will benefit from this latest freeze, which follows the latest report from the regulator’s annual price review which has consistently found that energy companies charge customers more than they really have to.
According to the BBC, chief executive of the utility regulator Jenny Pyper said it was “a welcome outcome, especially as we enter the winter months”, and we at Energy Company Numbers couldn’t agree more. But, it remains to be seen what price increases will follow this freeze, because as well all know a top tactic employed by energy suppliers to to lower or freeze prices, only to raise them significantly the year after. For example, from 2007 to 2014, the average annual domestic electricity bill have risen from £450 to £650, which is a significant leap.
If you struggle to make sense of the current energy prices in the UK, it’s worth reading Ofgem’s guide on understanding energy prices in Great Britain. If you are a duel fuel customer, it will also be worth reading Ofgem’s outlook for costs that make up energy bills guide.