Dangerous movements with regards to three of the biggest energy service providers in the UK could spell an unavoidable consistent increase in fuel prices. Both commercial and residential consumers have been giving loud criticism with regards to how these juggernauts are consistently competing with each other in price increases. Amidst the growing demands of the global market with oil and fuel prices seemingly not stopping their price increase together with business tariff rates to supplier costs, 2018 might look a lot worse before it gets better for the energy economy.
British Gas, EDF, and Scottish Power
The three energy companies, British Gas, Scottish Power, and EDF, have recently engaged in a head-on competition with their price increases. In September 2017, British Gas increased by 12.5% its electricity prices. Following this was a recent 5.5% increase in both gas and electricity prices earlier this year. Next, after British Gas, EDF increased the cost of their electricity services by 2.7%, just days after British Gas announced their 5.5% increase. Consequently, after EDF raised their rates, Scottish Power followed suit with a 5.5% increase of their own, applied to a third of their customers with duel-fuel bills numbering around 960,000 homes.
Public and government response towards price increases
British Gas is not new to criticism regarding its management decisions. British Gas released plans for massive job cuts when announcing their business plan of cutting 4,000 jobs by the year 2020. Seemingly in response to the recent and soon-to-come market changes, British Gas is expected to increase their job displacement from 4,000 to 5,500 in number. Union groups have condemned this move, referring to the act of cutting jobs as a historically proven blunder that is seen as a poor attempt to salvage the effects of the energy crisis.
Distrust in the leading brands has led consumers to seek price consulting websites such as https://www.utilitybidder.co.uk to aid in dealing with these changes. Public criticism has since grown in response to British Gas’ subsequent price increases for electricity and gas. The public has taken a similar response towards EDF and Scottish Power’s actions, who appear to be following the lead of British Gas’ business model in 2018.
Providers running towards the energy price cap deadline
A number of factors have been seen to be the cause of the recent energy cost increases. The global economy is now seeing the pressure of facing environmental issues that are detrimental in the long term. Nations have scrambled to find solutions to the growing world of prices while accommodating the global incentive to go green.
It seems the greatest factor involving the increase in prices is the official signing of the energy price cap to be finalised this year. Its intention of attempting to limit bill costs for local businesses and residential families across the UK seems to be an economic hurdle that these companies aim to intercept before it’s fully implemented.
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