Bulb to increase energy prices by 5.3%
Energy supplier Bulb is raising the price of its standard credit and prepayment tariffs, with all 1.7 million existing customers to be hit by the rise in October.
The Vari-Fair tariff – Bulb's only tariff for those with standard credit meters – will rise by £51 for new customers on average usage from today (Monday 14 September). All existing customers and those already in the process of switching to Bulb will see the same price rise on Sunday 18 October.
For a typical dual-fuel household, Bulb's new Vari-Fair tariff will cost £966/year on average, up from £915/yr before the hike.
If you're on Bulb's prepay tariff – Vari-Fair Prepay – prices are set to rise by average £27/yr, from £998/yr on typical dual-fuel use, to £1,025/yr.
And with both its standard credit and prepay tariffs set to rise, it means that all of Bulb's 1.7 million customers will see hikes to their bills next month.
To see how much you could save by switching your energy provider, do a full market comparison via our free Cheap Energy Club.
I am a Bulb customer – how am I affected?
All Bulb customers are on its Vari-Fair or Vari-Fair Prepay tariff, so you will definitely be impacted by the price increase. All variable tariffs, as the name suggests, are subject to price changes, though energy providers must give customers at least 30 days' notice.
On Thursday 1 October, Bulb is actually reducing the price of its gas rates – by a typical £2/yr for dual-fuel customers. However, this is massively offset by an average increase of £53/yr on its electricity prices, set to come in on Sunday 18 October.
So it's worth all customers using our free Cheap Energy Club to check if Bulb's still right for you – the club has been updated with the new prices, so it'll be a fair comparison. Bulb's new average dual-fuel price will be £172/yr more than the market's cheapest right now, so most will be able to switch and save – and you won't have to pay any exit fees to leave.
If you're on prepay, it may still be competitive, as it will only be beaten by two smaller suppliers. However, if you are willing to switch to the cheapest deal, you could save £45/yr on typical dual-fuel use compared with what you'll pay on Bulb's tariff.
Why does Bulb say prices are going up?
Hayden Wood, co-founder and chief executive of Bulb said: "At Bulb, we're committed to pricing fairly and transparently. That's why our tariff reflects the true cost of energy, so members know they are always on our best available deal.
"Overall costs of supplying homes have gone up significantly, and we've held off passing on the cost for as long as possible. As soon as the price of supplying energy falls again, we'll gladly pass on the savings to our members – when costs fall by more than £20 per year, so will our tariff."
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