![]() The French-owned firm follows in the footsteps of British Gas, Engie and Drax in committing to the Federation’s ‘Blend & Extend’ initiative, which sees businesses that locked into high prices last summer able to lengthen their contracts in order to spread the higher costs over a longer period.Ĭurrent lower energy prices will also feed into the calculation, helping to bring the overall cost down. The Federation of Small Businesses says EDF is joining the ranks of energy suppliers that will allow small business clients trapped on high-cost fixed tariffs to adjust their contracts to save money. Prices are still unpredictable and signing up for a fixed rate now might mean you miss out if prices fall in the future.”ġ2 June: Small Business Group Wins ‘Blend & Extend’ Promises “THINK BEFORE YOU FIX: Fixed-rate energy tariffs have seen a return to the market but check if they are right for you. Ofgem has used social media to urge those considering a fixed tariff to proceed with caution. Most fixed tariffs carry exit fees for those wanting to leave the deal early – these can be as high as £75 per fuel. However, if the day-to-day price of energy falls, the customer will be marooned on the fixed price and unable to benefit. ![]() The advantage of fixing is that the customer is protected from rising prices while the fix is in place. ![]() They lock in the price per unit of gas and electricity for the customer, but actual bills are determined by the amount of energy used. Market watchers are speculating that the fall in the level of the cap will prompt some suppliers to reintroduce fixed-term, fixed price tariffs, which have been almost entirely absent from the market for the past 18 months because of spiralling wholesale prices.įixed energy deals – usually 12 or 24 months in duration – hinge on the supplier being able to buy fuel at a guaranteed price for the duration of the term. The cap is tumbling because of a drop in wholesale prices, which in turn have reduced because energy companies have sourced alternative sources of supply to those disrupted or ‘choked off’ by the conflict in Ukraine and associated sanctions on Russian gas and oil. This guarantee will cease to apply from 1 July, when the Ofgem cap will fall from £3,280 to £2,074. The rapid increase in the cap level prompted the government to introduce its Energy Price Guarantee (EPG), which has limited average consumption household bills to £2,500 a year since October 2022. The cap was last below £2,000 in September 2022.Īt present, the cap – calculated each quarter by regulator Ofgem – stands at £3,280, having touched £3,550 in October 2022 and a peak of £4,279 in January this year. Contact if you have stories on this topicġ4 June: Regulator Tells Consumers To Think Before They FixĪnalyst Cornwall Insight is forecasting that the price cap that governs annual household energy bills will fall to £1,933 for those with typical consumption in October before edging up to £1,944 in January 2024. Latest news on the UK energy market, including details of the Ofgem price cap, tariff rate increases, company information and regulatory developments. Energy Update: Cornwall Forecasts Winter Caps Below £2k As Suppliers Mull Fixed Deals While we work hard to provide accurate and up to date information that we think you will find relevant, Forbes Advisor does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impact any of the editorial content on Forbes Advisor. ![]() These “affiliate links” may generate income for our site when you click on them. Second, we also include links to advertisers’ offers in some of our articles. This site does not include all companies or products available within the market. The payments we receive for those placements affects how and where advertisers’ offers appear on the site. ![]() This comes from two main sources.įirst, we provide paid placements to advertisers to present their offers. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive payment from the companies that advertise on the Forbes Advisor site. The Forbes Advisor editorial team is independent and objective. ![]()
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