Our latest pricing update explained,
and how we can help you to keep your bills cool during this hot summer.
You may have seen recent news that wholesale energy prices have increased significantly this year and the Big Six as well as smaller suppliers have had to increase their prices. While this has been going on through summer we’ve taken steps to minimise any impact on you, but it has reached a point where we unfortunately have to increase our prices.
We may be enjoying some great weather right now, which of course will mean you are using less energy, however a combination of this extra warm summer and the unusually cold and drawn out winter has had an effect on the overall wholesale cost of energy, which has been steadily rising in recent months.
As such, we wanted to take the time and explain our latest pricing update, and reassure you that offering the most competitive pricing we can, is still part of our overall aim.
Wholesale power prices are currently being affected by two main issues:
1. Renewable wind generation has been 30% lower than normal due to the warm stable weather we’ve been enjoying. You can read more on that here
2. There remain shortages of gas supplies in the UK because we used so much more than normal through winter and a number of key storage facilities were offline. When renewables are low, UK power generation is predominantly created from Gas fired power stations and therefore when gas prices are high there is a corresponding increase in wholesale energy prices.
The last time we made changes to our pricing was back in April of this year, and before this, July 2017 where we lowered prices by £68 for the typical home. However as shown below the current market situation means that wholesale pricing is currently outstripping the cost of our dual fuel tariff.
It’s something we are once again reluctant to do, however due to the current market situation we will be slightly increasing the cost of your energy effective from 1st September.
While this may not be the news you want to hear, we just want to reassure you that this price increase has been carefully considered and all avenues explored, with this being the only viable option. It’s important for our long term success that we’re able to cover our costs as a business so that we can help our customers become more efficient and cut out waste in the future. We can only do that if we’re still around to help.
In terms of percentage the increase will be 5.8%, which works out at around £4.80 per month for the average Igloo household. It’s also worth mentioning that our gas price will not be changing, as we think there might be some signs of gas prices softening. Being a variable tariff we will keep a close eye on the market, and if prices start to lower, then we’ll look to pass this through as early as possible.
Our tariff remains one of the most competitive in market, we are £264 cheaper than the Big Six standard tariffs, and still in the top 5 tariffs you can switch to on Moneysupermarket.com. Offering you the best price and service possible is still very much at the heart of everything we do.
Your monthly direct debit and payment amount will be staying the same, and we will continue to review your account balance, ensuring that you are on track and paying the correct amount for the energy you use.
This is only the second time we have had to raise our prices, and our interests still lie with helping you save money by using less energy.
We have some very exciting times ahead of us as a supplier, including our smart meter roll out towards the end of this year, and many more updates to come with the Igloo app. It’s been a great journey so far, and we look forward to continuing it with each and every one of you.
For now, one recommendation we have is installing the Tado smart thermostat, something we swear by here at Igloo. With the ability to reduce your heating and hot water costs by 31%. To make sure you purchase the right Tado for your home, please visit here and use the email address linked with your Igloo account.
Other ways to reduce your energy consumption this summer, include:
1. Switch you traditional lightbulbs to LED ones. You could save up to 80% on your lighting costs just by making that change!
2. Did you know that 90% of a washing machine’s energy costs come from heating the water? If you wash your clothes at 30°C or 40°C, not only are you saving the environment (and potentially your clothes!) you will save some money.
3. When the sun is out, ditch the expensive tumble dryer and either hang your laundry on the peg outside, or put up a clothes horse by an open window. Clothes will dry a lot quicker and you’ll see a significant drop in your energy bills.
4. Those who hate washing up, rejoice! Avoid pre-rinsing your dishes in hot water, just scrape before they go in the dishwasher to save on both water and energy.
5. Did you know power showers use more energy and water than having a bath? Turn the pressure down slightly to save on both.
6. You may have switched your heating off, but what about your hot water? Did you know that 15-20% of your energy costs come from heating up water. If you’ve got a hot water tank, make sure it’s well insulated and take a look at the settings on your timer; you could save up to 50% by only heating it once a day and insulating your tank better. Switching to a Smart Thermostat is one of the simplest ways to get better control over your hot water, as well as your heating.