One of Britain’s most popular and fastest growing renewable suppliers Bulb has just announced a 11.1% price rise to their one and only ‘Vari-fair’ tariff. This will unfortunately effect all Bulb customers and has come as a result of rising wholesale energy prices, which have risen 15% since August 2018.
Whilst reluctant and apologetic, Bulb have confirmed the rise will take effect on the 11th November 2018 for existing customers. For any new customers that have signed up since 10th September 2018, it will take effect immediately.
Bulb claim that for the average household, an 11% increase will add around £102 a year to your energy bill, or an extra £8.50 a month. This of course will vary from customer to customer depending on energy usage. If you’re an existing Bulb customers, you should have received an email to outline the exact increase to your own bills in pounds and pence.
Of course nobody likes news of a price increase to any service, but Bulb’s hands are somewhat tied in this case. Their business model is based around setting prices based on the wholesale energy market, in order to ensure customers only ever pay for ‘the true cost of energy’. The wholesale market prices fluctuate based on supply and demand of gas and electricity and at the moment, a shortage in gas supplies from Norway means prices have skyrocketed.
We’re sorry that we had to raise our prices. We really don’t enjoy doing it. The recent increases in energy prices, particularly gas, has forced us to raise the prices. We'll drop prices when wholesale costs go down by £20. We've dropped our prices 7 times in the pas...— Bulb (@bulbenergy) September 13, 2018
To be fair to the London-based supplier, they are very clear about the possibility of price rises on their website and are transparent about the fact their tariff will always rise and fall. It’s simply par for the course when signing up to any variable energy tariff. And since they only offer one variable tariff, all customers pay the same unit price and standing charge.
This means all of their customers will lose out or benefit equally when prices increase or fall, as they tend to do so a few times each year. Bulb have tweeted recently to remind customers that their prices have dropped eight times, compared to increasing just four times since they launched in 2015.
It appears that despite their difficult announcement, the majority of Bulb customers have responded with understanding and acceptance. Of course many are unhappy at having to pay more for the same amount of energy, but others have praised their honesty and how they have informed customers. We think this speaks volumes for the quality of their customer service and the general likeability factor of one of highest rated green energy suppliers.
Thanks for understanding. We know this isn’t an ideal situation. We’ll bring our prices down as soon as wholesale costs drop again.— Bulb (@bulbenergy) September 13, 2018
If you plan to switch to Bulb soon, you will begin paying the higher rate immediately. But for the majority of customers switching from the typically expensive ‘big six’ suppliers such as British Gas and SSE, Bulb should still work out cheaper. Plus when it comes to factors such as customer service and account management, Bulb still stand head and shoulders above the competition.
To learn more about Bulb, check out our independent Bulb Energy Review.