As of last week, 18 enrergy suppliers accounting for 2.5 million customers have gone bust due to the rise in wholesale pricing.
Do you need to panic? Well maybe but only for your wallet. Your supply is not going to be interrupted; however if your supplier goes bust you will be automatically transferred to another supplier. For example, Igloo who are now bust had approx. 179,000 customers who are now transferred to E.ON Next and will be subject to their pricing and service.
At the beginning of February 2022, there will be an announcement of a new price cap level which will come into effect from 1 April 2022. A likely average increase will be in the region of £1,200-£2,000 per year for the many dual fuel customers.
You can look to switch, however the smaller suppliers are more vulnerable and many suppliers are taking deals off-price comparison websites as a result of high wholesale prices and market volatility. They’re trying to get their costs down to survive, so they adjust tariffs appropriately and the only option they have is selling you energy at higher rates.
Our article in the last issue explained how volatile the energy supply chain is for the UK and it is hard to predict where prices will go long term, we can be sure of is demand for electricity is not going to reduce.
Now is a good time to assess your options on how to be cost-effective with both energy use, consumption and increasingly, generation.
Small changes can make a big difference; research by Uswitch.com shows turning your thermostat down by just 1°C could actually save you as much as £80 per year. It means the 17.7 million households setting thermostats above 20°C could save £1.4 billion if they turned the temperature down just a single degree.
In terms of sustainability, saving energy and looking after the planet, a further 43% of people say they have totally re-evaluated the way they live in the past year.
New car registrations show how many people are now choosing electric vehicles; 1 in 6 new cars registered last year were plug-ins and it’s hardly surprising when the latest EV’s are affordable and can easily achieve over 200 miles on a single charge. Last years registrations were more than the previous four years combined.
Now that we are 2 years into the government introduced Smart Export Guarantee (SEG), which encourages energy suppliers to pay customers for the solar energy they generate, as well as cutting your energy bills you can earn money from your solar panels. It continues to be a great opportunity, it makes good financial sense to power your home with solar and even better to sell that free energy back to the grid that needs it.
Whilst it is a minefield choosing a new supplier that will buy electricity you generate, provide off-peak rates and support the hardware you choose for your home energy system, there are significant savings to be made in the coming decade by getting it right with solar, house battery technology and electric vehicles.