Should you switch suppliers because of rising energy prices? What you should know.
ENERGY prices are set to rise for millions of people across the United Kingdom. Should you be seeking to make the move as the cost of gas rises and more businesses fail? Three more energy companies, Enstroga, Igloo Energy, and Symbio Energy, went bankrupt on Wednesday, according to industry regulator Ofgem. This raises the total number of businesses that have shut down this month to ten, as the rising cost of wholesale gas makes it impossible for smaller businesses to stay viable. So, what should the customer do now that gas prices are about to rise? All energy providers must adhere to a price cap, which sets the maximum amount they can charge customers on regular variable contracts.
For over 15 million families in England, Wales, and Scotland, the price restriction will jump to 12 percent on October 1.
Prices will climb by 21.8 percent (SSE) and 35 percent (SSE) in Northern Ireland, which is a distinct market with two suppliers (Firmus).
Many consumers with smaller energy companies are considering switching to one of the ‘big six’ energy companies, which include British Gas, EDF Energy, E.ON, npower, Scottish Power, and SSE.
Experts, on the other hand, say that switching now is pointless.
Because the business has mostly stalled, few suppliers are taking on new customers in the first place.
If you do, you’ll merely have to pay the price cap imposed by Ofgem, which is what you’ll have to do anyway if your smaller provider fails.
If your current supplier goes out of business, you’ll be immediately transferred to one of the larger suppliers.
Your gas or electricity will not be turned off, but your costs may increase.
Take meter readings as soon as you are informed of any changes to your supply.
Utility Point’s clients have all been transferred to EDF after the company went bankrupt earlier this month.
Customers of People’s Energy, another bankrupt company, have been informed that they would be transferred to British Gas.
Octopus will take over Avro customers, while Shell Energy will take over all Green’s clients.
Customers of the three companies that went bankrupt on Wednesday, Enstroga, Igloo Energy, and Symbio Energy, will find out who they will be moved to in the coming days.