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January 31, 2019

Energy Market Update - January 2019

Five minute digest

Summary

Find out why 2018 was a record breaking year in the UK energy market, with more switches, more price rises and more suppliers failing than ever before. And why auto switching your energy remains the best solution for the highest possible savings.

Market watch

Another year of

Breaking records

2018 - summary.

2018 – A Year of Energy Industry Records

Record numbers switched in 2018 – with 40% switching to smaller suppliers

Figures published by Energy UK show that 2018 was record year for energy switching. Over 5.8M customers changed their supplier with nearly 2.4M (40%) moving from a large supplier to one of the smaller/mid-sized providers for their gas and electricity.

It’s great to that so many people did switch last year, but the total is still only 1 in 5 households. So if you have friends and family who are still with one of the ‘Big 6’ make sure to tell them about Flipper!

Prices continued to rise – but we’ll continue to find you the best deal

As well as a record number of switches, there were a record number of price rises last year. In total we saw 57 price increases in 2018, with the average increase being 7% and some tariffs rising by 20%.

Our aim will always be to minimise your energy costs, but with prices rising the best deals available when your current deal ends are likely to cost slightly more that you have been paying.

If you are wondering whether Ofgem’s price cap, which came into effect on 1st January, is going to limit further price increases, unfortunately that is not the case.

The cap only applies to suppliers’ standard tariffs and limits the amount that can be charged to a ‘typical user’* to £1,137 per year. We know the best deals on the market are hundreds of pounds cheaper that this and most of our ‘first flips’ involve moving customers away from a standard tariff onto a much better deal.

Not only that, but the level of the cap will be rising in April and industry experts expect the increase will be 10% or £120 for a ‘typical user’. Also, you need to be wary of fixed tariffs, as research has shown that there are more than 60 fixed tariffs which are more expensive than the cap level - as it does not apply to fixed tariffs.

Whatever happens, we will be checking the market for you every month to ensure you are on the best deal. But if you have friends and family who believe the Price Cap or their Fixed Rate means they are on a good deal, we suggest you get them to check the saving we could find them. (Or get them to read this article explaining The Price Cap in more detail)

[*a typical user consumes 12,000kWh of Gas and 3,100kWh of Electricity per annum].

Several suppliers failed – but there’s no need to worry

As well as the record number of switches and price rises, 8 suppliers ceased trading last year. We understand that this can be concerning, especially if you are affected.

We take our role as your ‘energy-manager’ seriously and will do our best to ensure that should this happen, we manage the process for you to minimise the impact and make sure you end up on the best deal available as soon as possible. You're always protected by Ofgem who have a safety net for this scenario - so you will never have your power cut off and the new supplier you get moved to initially will always pay any outstanding credit you may have. At this point Flipper can start searching for better deals again for you - so other than taking a meter reading, it's a relatively painless process to go through as a member.

Predictions for 2019.

We expect a few more records this year, more price rises (57 in 2018), unfortunately more suppliers might fail (and some new suppliers will enter the market), increased switching between smaller suppliers for more competitive rates, and definitely more people choosing Flipper - The first and only true auto switching service.

In the press

Enjoy the most interesting energy articles

Mark from Flipper Joins BBC News

Flipper joined the BBC's Sally Bundock and Maryam Moshiri on BBC Business Live news. Managing Director, Mark Gutteridge talks about Flipper and how it helps out those looking at their finances - particularly those wanting to save on their energy bill.
Read more →

Renewables posted record share of UK power in Q3 2018

Renewables such as solar power provided just under 1/3rd. of UK’s total power in Q3 2018! A more enlightening record where summer’s heatwave and high wind speeds helped us out.
Read more →

Flipper focus

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