Energy company pricing announcements

On 10 February 2017 Npower announced it was increasing gas and electricity prices by 9.8% from March, not long after EDF had also announced price increases. Scottish Power then declared price rises – its dual fuel prices will go up by 7.8% from the end of March.

However British Gas, the market leader, has stated that it will extend its current price freeze for customers on its standard energy tariff until August. With three-quarters of its customers on standard variable tariffs, this decision will benefit around 5 million household customers. The move puts immense pressure on the three members of the Big Six who have announced price increases to decide whether or not to go ahead with them. British Gas, which has now frozen prices, has a total of 6.6 million customers, more than the three that have raised them – EDF, Npower and ScottishPower – combined.

It remains to be seen if the two other members of the Big Six, German-owned Eon and the number two player SSE, continue their current freeze on prices. Similar to British Gas they committed to a price freeze for the winter and may now decide they have no choice but to extend it to August.

Contrary to popular belief this proves there is competition in the energy market.

Source: Sky News