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Renewal price increase


Userlevel 3

PP renewal price for me at 3 June 2021 is 29% (twenty-nine) increase. Recent posts seem to be talking about 16%.  Is "typical" increase now even higher than just a few weeks ago?

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Best answer by 25 quid 3 June 2021, 22:30

Seems like you’re going to continue to be @NotVeryImpressed unfortunately. Yes, prices have risen very quickly recently. See for example: 

 

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38 replies

Seems like you’re going to continue to be @NotVeryImpressed unfortunately. Yes, prices have risen very quickly recently. See for example: 

 

Userlevel 3

Don't know where the standard reply about 24 month fixed rate came from.  Is it some automatic thing?   It tells me about the very tariff that will cost me 29% more.

Userlevel 3

Ah, I can see your accompanying message now.  Thank you @25 quid.

Userlevel 3

Has anyone done the comparison and found that a 29% increase is a good deal? It can't be!

It’s not as good a deal as a few weeks ago. Some folk have found deals that are close elsewhere, but remember if they are variable, they might not last.

Good luck deciding, as you’ve seen from that discussion, it’s not easy!

Userlevel 3

Because I have electric heating, my bill for fairly ordinary 4 bed house (16000 kwh pa) will be £3000 pa at PP's new rate!  It's insane!  Gas is 1/5 or 1/6 the price of electricity per kwh so same percentage increase won't mean quite such high cost for most customers, I suppose.

I feel your pain...

Userlevel 7
Badge +9

Hi @NotVeryImpressed 

The reality is that every decision about the next tariff is a gamble. Those 24 month fix is a big increase on last year's prices - in 12 months time it could seem a very good buy if wholesale prices continue to rise. If wholesale prices fall it will be a very bad buy. The longer the fix the higher the stakes, as it were…

Stephen

Has anyone done the comparison and found that a 29% increase is a good deal? It can't be!

I ran a comparison through Uswitch and it advised me it could not find a cheaper deal for me. I compared a variable tariff and also a fixed one. Same result. I am in the NE. A friend in the SE got a different result from Uswitch they recommending another supplier.

I have done the 24 month fix and adjusted my spreadsheet to start monitoring. Based on current consumption and the new fixed rate (does not come in until mid July) it is costing less than PP said it would!

Userlevel 3

Hi

I would be very careful about signing up for a 24month fixed deal if prices are currently spiking.

Of course you could always pay the exit fees to get out at a later date :grinning:

Best Neil

@flame But are they spiking? They are currently catching up from the Covid year drop and there could be a little more to go yet as I am sure the full increase would not have been applied in one go.  Of course other questions are “Will gas become dearer with increases in the government levy in order to dissuade users? Will gas become cheaper because of a falling number of users? Will electricity become cheaper if subsidised? Finally, How long is a piece of string?!

Userlevel 7
Badge +5

@NotVeryImpressed we are all feeling that way at the moment (not very impressed), but these price hikes are across the board, you just can't avoid it.  We've all been debating about which tariff to choose, as many of us have just come to or are coming to the end of our 12 month fix on last year's prices and it's been a shock to see how much we'll have to pay going forwards.  As @G4RHL has said, there doesn't seem to be any cheaper deals out there at present. 

Userlevel 7
Badge +8

My tariff isn't due for renewal until September, I dread to think what the prices will be then.

To answer your last query @G4RHL  the length of a piece of string is twice the distance from the middle to the ends

Userlevel 3

Thanks for these replies.  Glad to know it's not just PP.  I haven't seen much about this in the media, but hope there is a big hoo-ha at some point when low income people in rural areas (much more likely to have electric heating) realise how many £100s more they will have to pay.  I'm okay because I can readily afford it, although obviously I have things I'd far rather spend my money on!

Userlevel 3

Thanks for these replies.  Glad to know it's not just PP.  I haven't seen much about this in the media, but hope there is a big hoo-ha at some point when low income people in rural areas (much more likely to have electric heating) realise how many £100s more they will have to pay.  I'm okay because I can readily afford it, although obviously I have things I'd far rather spend my money on!

 

See: Guardian article

Quote:

“Surging demand and supply bottlenecks were always going to lead to a jump in prices. The big question is how persistent these forces prove to be and judging by economists’ forecasts, the jury is still out.”

Best Neil

@flame The increase is so great there will be fuel poverty for one or two. I am on a fixed income and an increase of £400 per annum is quite a hit. If the Government acted wisely it would subsidise electricity prices until the cost of production was better. It has kindly said no more gas boilers after 2025 but suggestion about what replaces them.

Userlevel 1

I too have noticed an increase but PP seem to have increased more than others.

 

I use money saving experts cheap energy club to compare and contrast. Scrolling down the fixed deals PP aren't even on the list at the moment. They are very expensive even in comparison with some if the bigger names.

 

Sorry PP it's been a blast but I'll be switching in a few weeks! 

Userlevel 7
Badge +9

Hi Andrew,

Not saying your calcs are wrong, but make sure your comparing actuals / usage like for like as the whole market is on upward curve. But if you get a better fix else where then all to the good. Beware of variables as I think prices are going one way based on what I’ve seen and the general consensus.. 

Good luck and all the best...lets us know what you decide...

Also, MSE might not show other PP tariffs if you’re with PP. Worth checking...

Userlevel 3

Your reply is interesting, Andrew, and I will certainly take another look at alternatives before finally deciding.  But when I checked before (2 weeks ago) competitors coming up as good deals were all around a 30% increase too. 

I asked PP to explain my 30% increase in the context of the 20% increase they talk about.  They promptly treated my request as a complaint (quite impressed by that!) and the answer seems to be the huge price differential between gas and electricity (my household is entirely electric with no gas or oil).  PP insist their price rises are "pass through" with no profit element for them; the increase we will pay is the increase they are incurring.  If there are no hidden weasly half-truths in that reply (a big ask from any supplier!)  it seems unlikely that competitors will be cheaper.

I have now written to my MP about the increase in the cost of energy.  I can afford a £600 increase in my energy bill, but plenty of people will struggle with a far lower increase.  It is effectively a "rural tax" on those who have no access to gas.  And should we be quietly tolerating these increases, anyway?  The media are not making nearly enough fuss.  If we need people to be converting to electricity because of global  warming, they need to be incentived not massively  disincentivised.  Equally, if this is going to be the future of energy costs, we need to face up to it and address the huge disparity between gas and electricity costs in any case.

Rant over!

@NotVeryImpressed I agree. Fuel poverty here we come for many. My increase is projected at about £425 per annum but I have gas heating. It will still hurt though for my income is fixed. At present I think PP over estimated my projected cost for they seem to be calculating it on more kWhs than I am using. I suspect they are trying to average.

The big problem will be if we have a cold winter. That plus 30% increase in fuel cost will produce some big problems. I have made the point elsewhere but if companies like PP and others stop paying for green offsets and pay that money to a subsidy account the government ought to be able to hold down prices of electricity whilst the production costs of it become better with new innovations.

I see the boss of Amazon is investing in the new nuclear fusion plant being built in the South of England and a few days ago the power cable laid across from Norway to Blyth in Northumberland was completed. Two cables in fact so that there can be an interchange of supply as weather conditions change and affect turbine production. 

Userlevel 1

Thanks for replies. Unfortunately I've checked several comparisons. Then directly and reviewing topcashback too.

 

Using actual usage in kwh... Its not my first rodeo! :) 

 

PP not competitive etc. But that's not unusual, companies getting a customer base with one off good deals and then hoping people don't switch.

 

Im not sure I've ever stayed longer than one term with an energy company. Serial switcher, zero loyalty! 

@andrewwconnor Having opted in for a 24 month fix from the 15th July next with PP it looks like I will have been PP longer than any other company! 

Userlevel 1

I'll check out the tariffs again in a few weeks. I've noticed a lot of 1 2 and 3 year fixes. 3 years having loads of cashback offers too. But one must remember if you switch every year you get cashback each time too. Sounds like we need an excel sheet with estimate rising unit costs. Cashback and fixed rates etc to actually do a true comparison. 

Userlevel 7
Badge +9

I'll check out the tariffs again in a few weeks. I've noticed a lot of 1 2 and 3 year fixes. 3 years having loads of cashback offers too. But one must remember if you switch every year you get cashback each time too. Sounds like we need an excel sheet with estimate rising unit costs. Cashback and fixed rates etc to actually do a true comparison. 

Good Idea Andrew,

Once you have that, copy and paste for every supplier which mirrors the switch sites leaving consideration for promotional offers v service deliver and may be green options.

 

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