Why have my prepayment prices changed?

ENGIE Pay As You Go Price Increase

From the 4th April, we will be increasing energy charges for our Pay As You Go customers. The price increase is a result of the increased costs of supplying energy to your home.

Why are prices increasing?

Recent energy market changes mean that the cost of supplying energy to our customers has increased.

We have reviewed our costs and we are adjusting our prices to reflect the increased cost of supplying energy. We don’t like having to charge customers more, and try to absorb any cost increases where we can. However sometimes we do need to make adjustments. We will always ensure that we are charging customers a fair amount for the energy that they use.

How will this affect me?

For an average dual fuel customer, the price increase will be around £58 per year, that’s 16p per day.

If you are already an ENGIE Pay As You Go customer, you will receive a letter in the post 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 4th April 2018 / the new prices have been updated on our website so the quote that you receive will represent the rates that you will pay] get a quote here.

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

If you are already an ENGIE customer on ENGIE Pay As You Go tariff there is nothing you need to do. You will receive a letter which explains the changes to your tariff.

If you wanted to switch to another supplier you are free to do so.

What makes up my bill?

Understanding the overall cost of your energy can be a little confusing, but 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 that 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.

What are the reasons for the price increase?

Why do energy prices change?

That’s how your bill is made up, but why does it 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.


Why are prices increasing 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.