Shell Energy joins other utility providers in increasing prices

Shell Energy has followed the pack and today announced an average 12.23% increase to its prices across the UK, bringing it in line with the Ofgem price cap that was announced in August.

The Ofgem price cap has been in place since 2019 and was introduced to ensure that consumers pay a fair price for gas and electricity. It is reviewed every six months and the latest increase will now come into effect on October 1^st.

August’s increase took the cap to £1,277, which was a £139 increase on the previous cap announced in April 2021.  In October 2020, the cap was set at £1,042, meaning that it has increased by £235 in just a year.

Gareth Kloet of GoCompare Energy commented on the increases:

“We have now seen most of the larger providers increase their tariffs to follow the Ofgem price cap, and while some of the smaller suppliers are yet to change their prices, we are now seeing some of the newer fixed rate deals being set above the price cap.

“For example, Shell Energy’s two-year fixed deal is now £1,352 which is £75 above the price cap, providing a strong indication of where the providers see the market moving in the next 12-24 months.

“This is a scary prospect for some bill payers who might already be on a tight budget – they are already facing an extra £235 on their bills in 2021, and 2022 doesn’t look much better if we are to go on these fixed rate deals that are being introduced.

“There are still a number of providers such as Utility Point and Pure Planet who have yet to increase their prices and some of the smaller suppliers are still cheaper than the Big Six, but the energy market is facing higher costs as a whole and it’s unlikely that we will see the tide turn in the near future.

“We would absolutely recommend checking your energy bills to make sure that you aren’t overpaying for your gas and electricity. It doesn’t take long to do and could prevent you from paying even more in 2022.”

For more information about switching energy, go to https://www.gocompare.com/gas-and-electricity/

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For further information please contact:

Lynsey Walden on lynsey.walden@gocompare.com,  or Kath Chadwick on Kathryn.chadwick@gocompare.com.

Based on Ofgem’s TDVC’s for a medium energy user based on change in prices from October 2020 to April 2021. This figure is based on a customer paying by Direct Debit with an Typical Domestic Consumption (TDC) for a medium user, set by Ofgem as 2900 kWhs electricity usage and 12000 kWhs of gas usage.

About GoCompare

GoCompare is a comparison website that enables people to compare the costs and features of a wide variety of insurance policies, financial products and energy tariffs.

It does not charge people to use its services and does not accept advertising or sponsored listings, so all product comparisons are unbiased. GoCompare makes its money through fees paid by the providers of products that appear on its various comparison services when a customer buys through the site.

When it launched in 2006, it was the first comparison site to focus on displaying policy details rather than just listing prices, with the aim of helping people to make better-informed decisions when buying their insurance. It is this approach to comparing products that secured the company an invitation to join the British Insurance Brokers’ Association (BIBA) in 2008, and it is still the only comparison site to be a member of this organisation.

GoCompare has remained dedicated to helping people choose the most appropriate products rather than just the cheapest and works with Defaqto, the independent financial researcher, to integrate additional policy information into a number of its insurance comparison services. This allows people to compare up to an extra 30 features of cover.

GoCompare is part of Future Plc and is authorised and regulated by the Financial Conduct Authority (FCA).

More information can be found here www.gocompare.com or here https://www.futureplc.com/brands/.