Page 9 - Gi_April2021

industry & government news

MORE SUPPLIERS TO BUMP UP ENERGY BILLS

AFTER BRITISH GAS’ announcement
that it would adjust its prices to the
new tariff cap, more suppliers have
announced changes that could see
customers’ energy bills hike by up to £96.
Scottish Power, E.ON and EDF have
all adjusted their prices to the new tariff
cap level on their websites, reports
Energy Live News.
That follows Ofgem’s announcement
for the new price cap at £1,138 per year
for default tariff customers and at £1,156
for pre-payment meter customers.
The price cap sets the maximum rate
suppliers can charge for average use on
standard variable or default tariffs.
The change, which will come into
force from 1 April, is estimated to affect
15 million customers. CUSTOMERS ON TARIFFS DUE TO CHANGE IN
APRIL WILL BE WRITTEN TO
EDF customers on dual fuel (gas and
electricity on the same bill) standard long-term, fixed tariffs, that guarantee market, including changes in wholesale
variable tariff will pay £1,138, an increase a consistent price of energy for the costs. Following Ofgem’s latest review,
of £96, whilst prepayment customers will duration of the tariff. we have made changes to our standard
pay £1,156, an increase of £87. “Customers on tariffs that are due variable tariff, E.ON EnergyPlan.
An EDF spokesperson said: “In the to change in April will be written to, “From 1 April 2021, the price of
face of sharp increases in the costs to reminding them that they are free to our standard variable tariff E.ON
supply energy, we have already seen switch tariff at any time and that they EnergyPlan for customers taking
two suppliers collapse this year and as should check that they are on the best both fuels will be £1,138, based on
a sustainable, long-term business it is tariff for them.” Ofgem average annual consumption of
critical that we reflect the costs we face. An E.ON spokesperson said: “Ofgem 12,000kWh for gas and 2,900kWh with
“We promise our customers that reviews its energy price cap every payment by Direct Debit. Our current
we will continue to offer a range of six months to reflect changes in the price is £1,042.”

DRAX SCRAPS CONTROVERSIAL PLAN TO DRAX POWER STATION in North

BECOME EUROPE’S BIGGEST GAS-FIRED PLANT Yorkshire has scrapped controversial
plans to swap coal-burning units for
gas turbines after opposition from
environmental groups.
The plans would have made Drax
– which already uses biomass and
produces six per cent of the UK’s
electricity – the biggest gas-fired power
plant in Europe, according to Sky News.
In February last year, Drax announced
it would close its two remaining coal
units by March 2021. All coal-fired power
generation must end in the UK by 2025.
The power plant says it plans to
generate more electricity by burning
wood pellets, known as biomass. The
use of biomass is controversial and
has been criticised by green groups.
Drax also says it hopes its use of
bioenergy combined with carbon
capture and storage technology will
mean it is eventually able to remove
more carbon emissions from the
atmosphere than are produced across
THE PROPOSED PLANS HAD ANGERED
GREEN CAMPAIGNERS all its operations.

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News.indd 4 11/03/2021 08:39