Why have my prices changed?

ENGIE Safe & Easy - Price Increase

From the 1st October, we will be increasing energy charges for our Safe & Easy customers. The price increase is a result of the increased costs of supplying energy to your home.

What is the impact of the price increase?

For an average dual fuel customer, the price increase will be around £80 per year, that’s 22p per day.

Why are we increasing prices now?

The main reasons for us needing to increase prices now are rises in wholesale energy prices, along with increases in costs associated with supporting initiatives, to deliver cleaner, greener energy to households throughout the UK. Since the beginning of the year, wholesale gas prices have increased 29%, and electricity has increased 26%.

There are several factors which have driven UK gas and electricity prices higher this year:

  • Oil price increases caused by geopolitics
  • Reduced gas storage levels
  • Production constraints on gas
  • Market restructure causing increases in carbon trading

It’s not a decision we have taken lightly and we want to ensure that you are always paying a fair price for the energy that you use.

How will customer be affected?

For an average household, the price increase will be around £80 per year, that’s 22p per day. If you are an ENGIE Safe & Easy customer you will receive a letter or email explaining these changes and what they will mean for you.

If you are thinking about becoming an ENGIE customer, please be aware that the rates you pay will increase from 1st October 2018. Click to get a quote.

If I'm an existing customer what do I need to do?

If you are already an ENGIE Safe & Easy customer there is nothing you need to do. You will receive an email or letter which explains the changes to your tariff.

You may want to consider moving to one of our fixed price tariffs which offer a good value rate, fixed for a period of time. If you did switch to an ENGIE fixed tariff you’d benefit from a new and reduced price straight away.

If you wanted to switch to another supplier you are free to do so, there will be no exit fees to pay. If you switch to an alternative supplier this would take around 21 days.

You can view our alternative ENGIE Tariffs here.

Or get a quote for a fixed tariff.

Why should I consider a fixed tariff?

A fixed energy plan provides security and protection from increasing energy prices as the price is guaranteed not to change for the duration of the contract.

At the end of the tariff, ENGIE customers benefit from ENGIE’s Rate Rollover Promise where you’ll be automatically switched to ENGIE’s cheapest plan without any exit fees. It means you’ll always get the best deal available and don’t need to worry about variable prices.

Interested to learn more why energy prices change?

First of all energy - gas and electricity - is a commodity like gold or grain. It’s subject to the rise and fall of market prices. These wholesale energy prices can rise on the free market and can also fall, depending on supply and demand across the UK and Europe. Then there’s the season - UK & European homes traditionally use significantly more energy in the winter, to keep things like the heating and hot water on. We also tend to spend more time indoors using electricity in the darker months. If there are fluctuations in the weather, meaning colder than average months, or even unseasonable changes in temperature, this can also influence the cost of energy through a change in usage.

Improvements to energy delivery networks or retirement of old energy systems are also factors which contribute to higher costs for energy suppliers. The costs of building and managing these networks are shared across energy customers, and therefore included in your bill.

In addition, a proportion of your bill goes towards supporting and developing more sustainable energy sources, and ensuring long term security of supplies. This support has grown in recent years, meaning we as a population, all pay a little bit more.

 

What makes up my bill?

Understanding the overall cost of your energy can be a little confusing, but it helps you to understand why prices increase. It is based on three elements:

  • The unit rate
  • Your usage
  • The daily standing charge

Firstly the unit rate - this is the price you pay for each unit of gas or electricity you use. The more energy you use the more you will pay. Part of your unit rate covers the cost of the energy itself– this is the wholesale price we pay the electricity generators and gas producers.

Fluctuations in wholesale energy prices on the open market are a major contributing factor to price increases and reductions.

The rest of your unit rate covers the cost of getting the electricity and gas through the networks to your home, and the contributions we are required to make towards government schemes which develop sustainable sources of energy generation and ensure future security of supply.

The other part of your bill is the standing charge. This is a fixed daily fee which covers costs which are not related to the actual amount of energy you use. This covers things like providing meters, fixed costs of delivery, profit and administrative costs which are also incurred by ENGIE on a fixed basis. It’s a bit like the line rental for a phone line.