Green gas and electricity supplier Good Energy is to increase its prices by an average of 7% next month, with bills for a typical household set to rise by £81/year.
The supplier has one tariff – it's known as Good Energy and Gas+ and is variable with no exit fees – meaning around 70,000 customers will see their prices rise when the hike hits on 18 January 2018.
For a typical dual-fuel user, average prices are set to jump by 7%, from the current £1,167/yr to £1,248/yr. Electricity is to go up by an average 7.5%, while gas prices will rise by an average 6.8%.
Good Energy says it's introducing a direct debit discount from 1 March 2018, which will mean you'll save £30 on your annual bill if you pay by direct debit – though even if you do that, it's unlikely to cancel out the price increase.
Check now if you can switch and save £300+/year
If you're with Good Energy you're likely already overpaying, even before the price hike. The market's cheapest tariff right now for a typical household is an average £807/yr – a variable tariff from new small supplier Outfox the Market.
And there are cheaper green tariffs too – Tonik Energy, for example, has a fix at £842/yr that also offers 100% renewable electricity.
Why is Good Energy hiking prices?
The supplier has blamed the price increase on rising costs.
It says on its website that the cost of buying clean renewable electricity has gone up, while the price of gas has been affected by increases in the wholesale price (what suppliers pay for their energy).
Good Energy also says that higher costs of transporting gas and electricity to homes has been a factor.
Get Our Free Money Tips Email!
'Our approach is different'
Juliet Davenport, CEO of Good Energy, said: "Good Energy was set up specifically to be a force for change in the energy market. Our approach is different and every customer who joins us is helping us transform the way the energy market works.
"Our customers are really important to us and all the teams at Good Energy are working hard towards making everything we do counts towards a cleaner, greener future."
This story was updated on 3 January 2018 to clarify the number of residential customers affected by the price hike.