Bulb Energy hikes bills for third time this year

Marks 41st bill increase announced by an energy provider so far this year

The energy supplier said the hike was due to rising wholesale costs (Reuters)

Bulb Energy has announced its third bill hike this year, blaming rising wholesale energy costs.

The renewable energy supplier said prices will rise for all of its 750,000 customers on its single ‘vari-fair’ tariff, with a typical annual bill increasing from £923 to £1,025, or £8.50 per month.

Bulb last raised prices in June, and said wholesale energy costs have increased by another 18 per cent since then.

The supplier said its single tariff reflects the true cost of energy. “When wholesale costs move, so does Bulb's tariff,” Bulb said in a statement.

“This has meant that since Bulb was founded in 2015, it’s dropped its prices seven times. Today’s increase is the fourth in the company’s history.”

The company’s co-founder Hayden Wood said: “Bulb is committed to supplying energy at a fair price. After this change, we will still be £196 cheaper than the average Big Six standard tariff for the typical home.

“We have one tariff for all our members, which reflects the true cost of energy. When the wholesale cost of supplying energy changes, so does our tariff. We will drop prices when wholesale costs fall by £20 a year for an average home. We will continue on our mission to deliver simpler, cheaper, greener energy for all our members.”

Rik Smith, energy expert at uSwitch.com, said: “Customers have the huge increases in wholesale energy costs to thank for this latest hike, but that will be of little consolation to the 600,000 who will be directly hit by this news.

“This is a case of third time unlucky for Bulb customers and a sharp reminder that for peace of mind, customers should fix their energy tariff. Just as the cold weather kicks in, Bulb customers now have to face the prospect of paying an extra £102 per year for their energy.

“It’s never been more important to shop around for the best energy deal. As well as saving up to £482 a year, fixing your energy will protect you from the relentless barrage of price rises and provide much-needed peace of mind as we head into winter.”

Bulb’s latest hike marks the 41st time an energy supplier has increased bills in 2018, uSwitch said.

Last week, energy market regulator Ofgem proposed a cap on energy bills that it says will save UK households £1bn per year, by cutting bills for customers on default deals by £75 per year on average, and £120 for those on more expensive tariffs.