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September 14, 2017

Energy Market Update — September 2017

Five-minute digest


Find out what’s contributed to a rise in energy prices and enjoy the most popular energy news articles doing the rounds.

Let us know if you find your update interesting, and if so, feel free to share it.

Market watch

Energy prices


due to SVT price hikes

What’s behind this change?

One of the drivers behind energy prices is the ‘Supplier Cost Index’, which is an estimate of the costs suppliers pay to supply domestic customers like yourself. Following a 6% drop in the first quarter of 2017, the Supplier Cost Index remained stable between May and August. A fall in supplier gas costs was offset by a rise in electricity costs, resulting in the Supplier Cost Index increasing by 0.9% overall.

There are two types of energy deals: fixed tariffs which have a fixed price plan for a set period of time, and typically more expensive standard variable tariffs (SVTs) which fluctuate in price depending on the market's base energy prices. When a fixed deal ends, it’s standard practise for suppliers to automatically “roll you over” to their SVT. The price difference between the cheapest available fixed deal on the market and the average price of ‘Big Six’ SVTs reached £230 in February 2017, which is the lowest it’s been for two years. This figure has been increasing since, reaching £300 in July on the back of rising SVT prices.

What’s expected going forward?

As reported in our last Market Watch, costs are unfortunately expected to rise for the rest of the year. From October, suppliers will be required to make capacity payments — insurance policies that make sure consumers still have access to reliable and affordable electricity during blackouts — and these increased supplier costs will result in further SVT price hikes. Additionally, the Supplier Cost Index and costs of supporting renewable/low-carbon electricity generation are also forecast to increase.

With Flipper, you don’t ever need to worry about getting caught out by SVT price increases and other nasty surprises — as well checking for better deals for you every month, we continuously monitor the market and will flip you to avoid forecasted price hikes that will affect you. In short, you can get on with living life and leave your energy worries to us!

In the press

Enjoy the most interesting energy articles

'Small modular reactors' could help keep the lights on

'Mini' nuclear reactors could help solve Britain's energy crunch and cut a third off bills, ministers hope.
Read more →

Big Six ‘overcharge loyal customers £7.3bn’

The Big Six energy suppliers have overcharged their most loyal customers by as much as £7.3 billion.
Read more →

Uber to make UK transition to hybrid and electric vehicles by 2022

Uber's latest green pledges will see 100% hybrid and electric fleet by 2022 as well as a disel scrappage scheme for drivers in London.
Read more →

EU Energy Bills Compared

The grass is not greener on the other side, but ours could be even greener.
Read more →

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