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Energy bills on the rise as firms raise prices

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24th Nov 16 11:00 am

More Brexit trouble?

The best energy deals for this winter are already behind us as fixed rate deals among the “big six” firms have soared by an average of 16 per cent since September.

Price comparison website uSwitch has said five of the biggest firms, excluding British Gas, has raised prices of its cheapest fixed term tariffs with E. ON’s one year offer rising by a whopping 34 per cent.

The huge shift in prices is due to the rising wholesale prices as well as the dramatic fall in the pound after the Brexit vote, much of raw energy is priced in the US currency.

Sky News obtained data from Energy Solutions where it found that wholesale gas costs have increased by 34 per cent, since 24 June.

The report also added that seven smaller suppliers had raised prices by an average of nine per cent since September, further increases in price are likely across the board unless wholesale prices begin to fall.

Claire Osborne, energy expert at uSwitch, told Sky News: “The rising cost of many energy tariffs underlines the need for a more competitive energy market.”

“The Competition and Markets Authority (CMA) spent two years closely examining the sector and so it’s vital that the government gives the final package, only published in June, the proper chance to work.”

“The CMA remedies should help more customers move away from expensive standard variable tariffs, lower bills and improve competition.”

“Suppliers must also play their part by doing all they can to help their customers reduce their bills.”

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