Prices of cheapest energy deals rise for the first time in 2016Wholesale costs and Brexit blamed for creeping prices
15 July 2016
After a few months of comparatively low energy prices, the cost of the cheapest dual fuel gas and electricity deals have increased this month.
July is the first month this year that the top five cheapest energy deals have not dropped in price over the previous month. Instead, there has been a slight hike in the cheapest deals' prices overall, even though the very best price available has remained the same as last month.
With prices seemingly on the rise again, it could be the right time to switch to one of the more competitive fixed price deals - we reveal this month's top deals below.
Use our independent switching site Which? Switch to get a personalised recommendation for the cheapest energy deal for your area.
Wholesale costs and Brexit to blame?
According to analysis from energy price reporting agency ICIS, wholesale UK gas and electricity prices began to climb earlier this spring.
Supply concerns for both gas and power pushed up the cost of energy, which then rose further more recently with shifting sentiment over the EU referendum.
ICIS reports that the Brexit result then pushed prices towards nine-month highs, due to the collapse in value of the pound, which boosted demand for British energy from traders dealing in euros.
Top five cheapest deals
Below we've rounded up the top five dual fuel energy deals in July 2016 available to all homes in the UK. To find out more about each company, click on their link.
As these prices are an average across the UK, the amount you pay changes depending on where you live.
|Top five cheapest energy deals for July 2016|
|Supplier||Tariff||Annual price||Tariff type||Exit fee|
|Robin Hood Energy||Robin Hood Energy Nottingham v4||£726||Fixed||No exit fee|
|Avro Energy||Simple and Summer||£747||Fixed||No exit fee|
|GB Energy Supply||Premium Energy Saver||£765||Fixed||No exit fee|
|Avro Energy||Simple and Save||£766||Fixed||No exit fee|
|Co-operative Energy||Co-op Fix for longer Sept 2017||£770||Fixed||£60 (£30 per fuel)|
(Please note that the Robin Hood Energy tariff is available to households in Nottingham only)
You could save £355 a year
Many households are still on a standard energy tariff from one of the Big Six energy firms. These tariffs are more expensive than the cheapest fixed tariff on the market, and switching to the cheapest can save you up to £355.
Scottish Power's standard tariff costs £1,081 a year - £355 more expensive than Robin Hood Energy's Nottingham v4 tariff.
2. Npower - save £351 by switching
Npower's standard tariff costs £1,077 a year - £351 more expensive than cheapest deal shown above.
3. EDF - save £343 more expensive
You could save £343 by switching away from EDF's standard tariff, which costs £1,069 a year.
4. Eon - save £331 by switching
Eon's £1,057 standard tariff costs £331 more than the cheapest dual fuel tariff.
5. SSE - £329 more expensive
If you're on SSE's standard tariff, the typical cost is £1,055 a year, which is £329 pricier than the cheapest dual fuel tariff.
6. British Gas - save £318 by switching
On British Gas's standard energy tariff? You could save £318 a year by switching away, as it typically costs £1,044 a year.
All the prices above are supplied by Energylinx, and are based on the details of a dual fuel medium user (12,500kWh of gas and 3,100kWh of electricity a year) paying by monthly direct debit and choosing paperless billing. Prices are averaged across all regions and correct as of 11 July 2016.