Energy prices are rising as a result of lockdown - here’s how to look for a better deal

Friday, 17th July 2020, 9:32 am
Updated Friday, 17th July 2020, 9:33 am
(Photo: Shutterstock)
(Photo: Shutterstock)

As lockdown restrictions continue to ease across the country, one surprising effect is that energy prices could become more expensive.

That's according to price comparison website, MoneySuperMarket, which is encouraging consumers to take advantage of current low energy prices before costs increase.

Why are prices rising?

The coronavirus lockdown contributed to a major fall in wholesale energy prices, as business and industrial use of energy dropped. This led to consumers experiencing some of the lowest energy prices seen in the market in recent times.

“For the past few months, many British consumers have enjoyed very low energy bills due to depressed wholesale prices as a result of reduced energy demand in the wider economy," said Stephen Murray, energy spokesperson at MoneySuperMarket.

“With lockdown now easing, that demand is starting to return - reflected in a 3 per cent rise in the average price of the top 25 cheapest energy tariffs between 1 April and 6 July."

What should I do?

“If you’re on your supplier’s standard tariff, or if you haven’t switched for 12 months, you’re probably paying too much for your energy," added Murray.

"You should consider switching to a cheaper fixed rate now to get the best price possible and lock in energy costs for next winter whilst prices are low.”

On average, customers that switch their energy supplier save an average of £290. Suppliers handle the switching process, and the whole thing can only take a few minutes.

What are the best tariffs available right now?

To find the best energy deals available right now, you can use Energy Monitor, available on the MoneySuperMarket website and app.

It keeps track of energy deals for you, and you can sign up for alerts when you run a quote, with Energy Monitor automatically letting you know when there is a deal available.

“A great offer that launched this week is SO Energy’s Artichoke tariff," says Murray.

"It’s a 100 per cent renewable, dual fuel tariff which costs £845 based on average usage - £282 cheaper than the current price cap level - and comes with a £25 bill credit to new subscribers.”