TODAY’S BLOG

ENERGY COST CRISIS

It seems that there is a weekly crisis at present, by the time you read this there will likely be a new one! I wonder if you are bracing yourself for an expensive winter? As you probably know, there is a global surge in the cost of gas at wholesale has led many companies to drastically increase their prices. While many companies have reacted by hiking up costs even more for customers, others have taken themselves off price comparison websites and some have gone bust. Its worth mentioning that price comparison websites aren’t all that you may imagine, they are not whole of market and only show companies that provide them with a commission.

Anyway your household and mine are facing much higher gas bills this winter due to a global surge in wholesale gas prices that have forced some energy companies to go bust. The British public has already been hit with energy price hikes over the last few months and could be paying hundreds more this winter, unless they counterbalance the extra costs by making some simple changes to their usage. The news that another five energy firms have folded in recent months will no doubt worry many householders but Ofgem has said it “has systems in place to look after consumers”. An Ofgem spokesman said that currently wholesale gas prices are at a record high, driven by international supply and demand factors. This is undoubtedly putting pressure on companies – with four leaving the market over the last few weeks. In the past few months Utility Point, People’s Energy, PfP Energy, MoneyPlus Energy and Hub Energy have all ceased trading – something which is thought to have affected half a million British households.  More recently Green and AVRO Energy both collapsed with an estimated 800,000 customers between them – Octopus has stepped in to takeover.

Energy Crisis 2021

FULL OF GAS

These consumers will be given a new supplier, that means extra hassle for them with the costs passed onto customers. Speaking from personal experience, my supplier “Green Energy Network” went bust last year and we were switched over to EDF. An unfortunately timed problem with the meter itself during this period, left us in limbo as we waited for a new account to be registered and set up, which too several weeks. We finally got there and it wasnt a major problem, but it wasnt “straight-forward”.

OFGEM added that it is working closely with the Government to manage the wider implications of the global gas price increase and it is not thought that this will lead to a complete halt in supply. Make of that what you will, I’m yet to be convinced that the current Government could successfuly manage a raffle.

As such there is no better time to see if you qualify for the Warm Home Discount Scheme, which could ensure some people are £140 better off. To find out, people can speak to their energy supplier, most of them are signed up to the scheme if they have 250,000 customers or more. More than two million UK households should qualify for this rebate on their energy bills this year and it’s important to get in touch with them early as there is only a limited amount of people energy companies can help.

What I might suggest is that you get on with reviewing your gas supply. I would recommend having a look at Martin Lewis’ website www.moneysavingexpert.com where you can do a search. If you want a £50 discount off Octopus, here is a code that you can use (I get £50 too) but do your own research about what is best for your usage. Here is the link: https://share.octopus.energy/tulip-shark-521.

Long story short, make a record and update your spending plan – either just let us know with an email, or update your information within our secure portal.

Dominic Thomas
Solomons IFA

You can read more articles about Pensions, Wealth Management, Retirement, Investments, Financial Planning and Estate Planning on my blog which gets updated every week. If you would like to talk to me about your personal wealth planning and how we can make you stay wealthier for longer then please get in touch by calling 08000 736 273 or email info@solomonsifa.co.uk

GET IN TOUCH

Solomon’s Independent Financial Advisers
The Old Bakery, 2D Edna Road, Raynes Park, London, SW20 8BT

Email – info@solomonsifa.co.uk 
Call – 020 8542 8084

7 QUESTIONS, NO WAFFLE

Are we a good fit for you?

Take Survey

GET IN TOUCH

Solomon’s Independent Financial Advisers
The Old Bakery, 2D Edna Road, Raynes Park, London, SW20 8BT

Email – info@solomonsifa.co.uk    Call – 020 8542 8084

7 QUESTIONS, NO WAFFLE

Are we a good fit for you?

Take Survey