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GB Energy Supply launches cheapest tariff on the market as households brace for a £65.54* rise in energy bills

27 May 2015
  • GB Energy Supply launches market beating £870 a year tariff
  • Meanwhile, 14 tariffs are due to expire at the end of May
  • 10 expiring tariffs will see an average rise of £65.54 (5.9%)
  • First Utility customers in the Norweb region to be hit hardest with a £309.87 (23.68% rise)

As loyal customers face a price hike of £65.54 on Sunday, a challenger energy supplier has launched the cheapest dual fuel tariff in the UK, with an average annual cost of £870.

Households who fail to shop around could see their energy bills rise by £65.54 at the end of this week when 10 fixed-term energy tariffs expire*. Those on an expiring tariff will see an average annual rise of 5.9%, as they are automatically switched to their supplier’s standard tariff.

Those in the Norweb distribution area (which includes Manchester, Blackpool and Wigan) and who are on the First:Utility iSave Fixed v18 May 2015 tariff will be the hardest hit, when they face an increase of £309.87 (23.68%) when they are moved onto the £1,308.17 a year iSave Everyday tariff**.

In total, 14 tariffs are due to expire at the end of May, including tariffs from British Gas, Scottish Power, Npower, M&S Energy, First:Utility and Sainsbury’s Energy.

While the majority of tariffs ending in May will see customer’s bills rise, there are a few fixed tariffs that slightly more expensive than the supplier’s standard variable tariffs. This means that 4 of the tariffs expiring will result in customer’s bills dropping. However, with a drop of just 2.3% households could still save considerably more by shopping around than sticking with their existing supplier.

Impact of tariffs coming to an end on Sunday 31 May (based on a medium user – 3,200 kWh of electricity and 13,500 kWh of gas per year – paying by monthly direct debit and averaged across all UK regions):

Supplier

Tariff coming to an end

End

date

Dual fuel?

Annual

cost

Annual cost of standard tariff

Difference

(£ and %)

British Gas

Fix & Gift card May 2015

31/05/15

Yes

£1,181.97

£ 1,156.11

-£25.86 (-2.19%)

British Gas

Fixed Price May 2015

31/05/15

Yes

£1,076.05

£1,156.11

£80.06 (7.44%)

British Gas

Discount Fix May 2015

31/05/15

Yes

£1,024.89

£1,156.11

£131.22 (12.80%)

Co-op Energy

Fixed to May

31/05/15

Yes

£1,125.21

£1,176.43

£51.21 (4.55%)

Co-op Energy

Fixed to May Paper Billing

31/05/15

Yes

£1,125.21

£1,176.43

£51.21 (4.55%)

First:Utility

iSave Fixed v11 May 2015

31/05/15

Yes

£1,046.26

£1,134.85

£88.59 (7.81%)

First:Utility

iSave Fixed v18 May 2015

31/05/15

Yes

£1,013.48

£1,134.85

£121.37 (10.69%)

M&S Energy

Fixed Price May 15

31/05/15

Yes

£1,130.01

£1,186.27

£56.26 (4.98%)

Npower

Price Fix May 2015

31/05/15

Yes

£1,107.22

£1,169.33

£62.11 (5.61%)

Sainsbury's Energy

Fix & Reward May 2015

31/05/15

Yes

£1,192.97

£1,156.11

-£36.86 (-3.19%)

Sainsbury's Energy

Fix & Nectar May 2015

31/05/15

Yes

£1,192.97

£1,156.11

-£36.86 (-3.19%)

Sainsbury's Energy

Fix & Nectar May 2015

31/05/15

Yes

£1,142.80

£1,156.11

£13.31 (1.15%)

Scottish Power

Simply Green Energy June 2015 NSC

31/05/15

Yes

£1,176.86

£1,166.37

-£10.49 (-0.89%)

Scottish Power

Simply Green Energy June 2015 Online NSC

31/05/15

Yes

£1,166.36

£1,166.37

£0.01 0%



Jeremy Cryer, energy spokesperson at Gocompare.com, said: “GB Energy Supply’s new tariff is the latest in a long line of shots fired from challenger energy companies to their larger counterparts.

The past several months have seen energy providers, especially smaller companies, fall over themselves to undercut each other’s fixed dual fuel deals. The result has been an extremely competitive energy market, with many fixed tariffs costing less than £1,000 a year.

“Currently none of the top five cheapest tariffs on the market belong to a ‘big six’ supplier, and as new tariffs are being announced on a regular basis, there could be significant savings to be had for those who get online and shop around.”

For more information on switching energy supplier, read Gocompare.com’s gas and electricty guide.

-ends-

Notes to editors:

*Average increase across all UK regions and across all tariffs coming to an end on 31 May 2015 where the standard tariff is more expensive than the fixed deal is 5.9% or £65.54

** based on a medium user – 3,200 kWh of electricity and 13,500 kWh of gas per year – paying by monthly direct debit, living in the Norweb distribution area. The iSave Fixed v18 May 2015 tariff has an average annual cost of £998.30 for Norweb customers. The iSave Everyday tariff has an average annual cost of £1,308.17 for Norweb customers, a difference of £309.87 (23.69%).