Latest Energy Prices Update

The UK energy market has been in turmoil since September 2021 when wholesale energy prices rocketed to levels never seen before. Due to ongoing global tensions impacting supply, and the daily volatility of wholesale gas prices, the UK energy switching market has been on hold. In essence, this means switching to a cheaper energy tariff has been ruled out since September 2021 meaning the vast majority of UK homes are now on their energy supplier's 'Standard Variable Tariff'. Usually deemed as some of the most expensive tariffs, these tariffs are now significantly cheaper than anything else available on the market direct from your supplier.

For now, our advice remains to focus on reducing your energy consumption whilst remaining vigilant to any possible savings as and when the market returns. Check back regularly to see when that is.

Energy prices are constantly changing, which is why switching energy suppliers is such an effective way of saving money - if you're on an expensive deal, switching could save you hundreds of pounds a year, and even if you're on a cheap energy deal, you could save by switching to an even cheaper one.

That's why it pays to keep on top of the latest energy prices and regularly compare energy deals.

What are the latest energy prices?

Here at The Energy Shop, we're committed to keeping you updated with the latest UK energy prices, check the table below to find out the latest tariff updates from a range of suppliers, including the big six and smaller independents.

Why are energy prices changing?

There are a whole range of factors that affect the price of energy, but one recent change to the market that has had a big impact is the energy price cap.

The energy price cap

Introduced in 2019 to help end 'rip-off energy prices', the energy price cap sets a maximum amount energy suppliers can charge for their standard variable rate tariffs. But the level of the cap isn't a maximum you can be charged as the cap only limits the unit rates of your gas and electricity, which means that you use more, the more you pay.

It's debatable whether the price cap is actually working in the way it was intended, but there's no question it's had a huge effect on energy prices and the energy market as a whole, with some suppliers even citing it as a contributory factor to them going bust.

An increase in demand

When there is an increase in demand for energy, this places a strain on the supply chain which invariably pushes prices up. This is why energy suppliers usually put their rates up as winter approaches, and why prices spike in extremely cold winters.

Conditions in oil rich countries

If there is conflict or a natural disaster in an oil-rich country, wholesale prices are pushed up and this increase is then passed onto consumers. This is why we've seen energy prices rise when there have been conflicts in Iran, Syria and Ukraine in recent years.

Energy supplier markups

Energy suppliers are often accused of putting profit before people, largely because many are quick to put prices up when wholesale prices increase, but don't appear quite as keen to drop their rates when wholesale charges drop.

But, unfortunately, energy companies are private businesses that have to turn profits and meet the expectations of shareholders. This is why Ofgem does its best to regulate the industry to help ensure households are aware of the costs and the benefits of shopping around for a better deal.

This doesn't mean energy costs are regulated - they're not - which is why suppliers compete for custom by offering competitive rates and improved customer service.

And that's why it's so important to vote with your feet and switch supplier if you're overpaying or unhappy with the service, as it's this competition for custom that helps to regulate energy prices.

Why do energy prices differ by region?

You may not realise it, but the price you pay for gas and electricity actually varies depending upon whereabouts in the country you live. There are two main reasons why this is the case:

• The demand in your area - Energy suppliers buy energy based on the predicted demand in each area. If this demand is more than expected, meaning suppliers need to buy surplus energy, then prices increase. This is also a reason why energy is often more expensive in rural areas.
• Local distribution network (LDN) charges - An LDN is often used by suppliers to distribute energy around a region, if your LDN charges additional fees, these will be passed onto you via your energy bills.

Will energy prices increase in 2020?

The good news is that energy prices have been falling in 2020, which means now is a great time to switch and lock in these cheaper rates for the next 12 months.

This drop in rates has seen the energy price cap lowered again, this time by £17, which has affected prices across the board, but the energy market is volatile and this could quickly change, especially given the impact of the coronavirus pandemic - not only could this affect supply chains, but self-isolation and government lockdowns mean more of us will be at home, which will lead to a greater demand, which could push prices up again.

How to find the best energy prices

The simplest way to find the best energy deals in your area is to run a energy price comparison with The Energy Shop. We use your postcode, along with a few details about your current energy deal and usage, to find you a cheaper deal in seconds.

Once you've found a deal you like, simply click 'Proceed' and we'll handle the rest of the switch for you, which will take no longer than 21 days to complete.