Standard Variable Tariff Price increases 2021 - FAQs

On 1st November 2021, the prices for our Standard Variable Tariff will be increasing. If you’re affected by these price increases, we will have been in contact with you by 1st October 2021.  For information on your new prices, you can check your personalised price breakdown in your email or letter from us. Or you can view the new rates here. 

Why are prices increasing?

Prices of gas and electricity on the wholesale market have hit record highs over the past few months. There are many factors driving these high costs such as a reduced supply of gas, reduced wind output and several large generators being offline. Read our blog to find out more about why wholesale market prices are increasing. 

Why does a renewable energy company need to increase prices if the issues are mostly to do with gas? Why has the price of renewable power gone up?

Many energy suppliers increase their prices every year, but this is the first time we are doing so since January 2019. We work hard to keep our prices down and give you certainty about your rates, while still paying our renewable generators a fair price for their electricity. Because the rate we pay our generators is influenced by the wholesale energy market, we have had to raise our tariff rates to reflect the higher wholesale cost of electricity and gas.

Renewable energy generation also impacts wholesale market prices. This year, wind energy output has been lower than in the previous 5 years, which has contributed to the rising cost of electricity.

We also supply gas. 10% is renewable biogas but the rest comes from the National Grid, (offset through investing in international green energy projects), which means we’re directly affected by changes to wholesale gas prices.

What has Good Energy done to protect the business and customers from price increases?

Some suppliers price below cost to gain customers, which puts them in a risky situation when energy prices rise sharply. With over 20 years’ experience in trading energy, we use careful pricing and buying strategies called hedging, where we forecast the amount of energy our customers are going to use and buy it in advance. This strategy means we’re working from a stable base and are less susceptible to significant movements in the energy market. 

As the price of gas has increased throughout 2021, our costs for supplying gas over the coming months have gone up, which is why we’ve increased our rates for the first time since January 2019. 

If the price of power is rising, why is your standing charge increasing too?

A standing charge is a fixed charge applied to your bill every day, which goes towards fixed costs such as enabling electricity and/or gas to be supplied to your property, metering services and distribution services. Although the rate increase is mostly due to increases in wholesale energy prices, these fixed costs have also gone up. The UK electricity grid is significantly outdated, and much of these costs go towards work to update it. We believe this is important for a future energy grid that is greener and more efficient.  

I pay by Direct Debit, will this increase? 

If you pay by fixed Direct Debit, your monthly payments cover your estimated annual energy usage. There will be no change to your fixed Direct Debit for now but we will monitor it. If your monthly payments need to change to cover your energy usage, we will get in touch.  

There are cheaper green energy suppliers that I could switch to. Why do you cost more?

We commit to matching the electricity you use at home with electricity we’ve either generated ourselves or bought directly from our community of over 1900 renewable generators. So, unlike many other energy suppliers that claim to be green,we don’t greenwash.The way we source our electricity means that we are the only energy company to have all of our energy tariffs accredited as Uswitch Green Tariff Gold Standard.

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