Today we’re announcing that from 1st April 2019, we’re increasing the price of our standard variable tariff, Life Energy. This change affects 8.6% of the total households that we supply, and will result in an annual bill change that is different for each household.
The wholesale cost of energy has continued to rise, so after careful consideration we’ve decided to increase the price of Life Energy from April. This means the average annual bill for an Ofgem medium-size dual fuel customer* on their standard variable tariff will be £1,192.
This follows the decision by Ofgem (the government regulator for gas and electricity markets in Great Britain), announced on the 7th February, to increase the "default tariff cap" by £117 to £1,254 a year, to reflect this increase in the wholesale cost of energy. This cap was introduced at the beginning of the year to ensure that households on default tariffs are protected and pay a fair price for their energy.
Once again, we have chosen to price below the cap set by Ofgem.
When the tariff cap came into effect in January 2019, we took the decision not only to price below the maximum allowable value; but also to reduce the price of Life Energy. This was to help our members through the winter period - the time of the year when households use the most gas and electricity.
Life Energy continues to be one of the most competitive standard variable tariffs on the market, as well as our greenest tariff available with 100% renewable electricity and 10% green gas with the remainder being totally carbon offset. We believe that the changes to Life Energy are a fair reflection of the current economic and environmental conditions, and the best way to ensure a sustainable future for all of us.
We’re inviting all our affected members to choose one of our competitive fixed tariffs; by logging into their online Tonik Space accounts, they’ll be able to see our best tariffs. And because we don’t charge exit fees on any of our current fixed price tariffs, members won’t lose the flexibility to change; so they get the best of both worlds.
*This is defined by Ofgem as a customer using 3,100kWh of electricity and 12,000kWh of gas a year.