Price increase

I’ve just received your email about the 2.8% price increase. Your email also states that despite the wholesale cost of energy plus government policy causing an increase on avergae of £63 per household, you have done a marvelous job by keeping that cost down by £39 through efficiency savings to a cost of £24. Perhaps you can explain then the rise in my annual bill which rather than being £24 is actually £86.76 per year, minimum. That seems to memalmost 4 times what is required, based on your own figures. The increase you appear to have applied to my account is 12.25% and not 2.8%. Perhaps you can provide a clearer explanation of your costs and why my bill is being increased over 5 times what you are advertising as your 2.8% increase.

@Alan5, I’d recommend having a read of these two threads:

@Alan5 I also recommend the threads @mowcius linked to.

To your specific question about the savings we mentioned (£39 per typical household) vs the impact on your bills being different from either £39 or £24, the answer is to think of things in percentages. Wholesale prices have gone up by 7% or so but we’ve only raised them by 3% or so.

As mentioned in the threads @mowcius linked to, these percentages are an average of a specific type of property (dual-fuel single-rate electricity), and some members are seeing higher price increases (and others lower).

I’m a happy Bulb customer, as I’ve found dealing with you to be so straightforward and hassle-free.
You did warn that prices might rise if your supplier costs increased. However the “Cheap Energy Club” has now sent me a list of over 10 alternative suppliers that would save me money if I switched to one of them. I could save as much as £183 a year I am told.
I don’t want to switch as I’ve been with Bulb less than 6 months. Even though I’m staying with Bulb, I think it right to warn that some of your competitors appear to significantly undercut your prices and I do wonder how they can do this when you need to raise yours.

I could save as much as £183 a year I am told.
You could maybe save that much, but remember that referring people to Bulb nets you £50 a pop, other companies' prices are likely to go up, and Bulb's will go down again if the wholesale prices go back down.
I do wonder how they can do this when you need to raise yours.
It's likely that price rises for them are on the horizon, but a lot of the cheap companies in the past seem to have been relying on being able to raise prices in the future and have the majority of customers not notice/switch, so they make their profits after the first year. Introductory offers keep new customers rolling in.

@Robert_Essex999 I agree that £183 seems a lot. Just make sure you’re comparing the same usage between us and the other supplier. What is your annual consumption for gas and electricity, by the way, and who is beating us by £183?

To your question of who is undercutting us and how – very few competitors are undercutting us by very much. We’re still definitely in the lowest 20%, at least for the typical home.