Today we’re announcing that from the 23rd August 2018, we’re changing the price of our standard variable tariff, Life Energy. This change affects less than 4% of the total households supplied by Tonik Energy, who are not on a fixed tariff, and will result in an annual bill change that is different for each household.
In the last few months we’ve seen several energy suppliers increase their prices in response to changes in wholesale gas and electricity costs. But unlike many other suppliers, we haven’t increased the price of our standard variable tariff since August 2016. During this period, wholesale electricity and gas prices have risen by 28% and 56% respectively, and we have held the price of the Life Energy tariff for our members. However, as a business, we are simply no longer able to continue to do this. The change in our Life Energy tariff means that the average annual bill for an Ofgem medium-size dual fuel1 customer will be £1085. Whilst we don’t like having to put up any prices, Life Energy is still one of the most competitive standard variable tariffs in the market place and is cheaper than any of the Big Six2.
In addition, we are pleased to announce that as well as 100% renewable electricity from wind, solar and bio generators, our dual fuel Life Energy members will now also be supplied with gas that contains 10% green gas, with the remainder being carbon offset3.
Since its launch in 2016, Tonik Energy has been committed to supplying green energy at an affordable price. We believe that the changes to this tariff are a fair reflection of the current economic and environmental conditions, and the best way to ensure a sustainable future for all of us. Life Energy is now one of the greenest tariffs available to Tonik members and will help them to reduce their carbon footprint even further.
We are inviting all our affected members to choose one of our competitive fixed 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.
Tonik Energy are dedicated to increasing the uptake of renewable energy in the UK. We’re investing in game-changing innovations that will create a greener, cleaner future, and help our members unlock additional savings in the years ahead.
1. This is defined by Ofgem as a customer using 3,100kWh of electricity and 12,000kWh of gas a year.
2. According to This is Money http://www.thisismoney.co.uk/money/news/article-5900783/Price-rises-affect-11m-households-average-52-home-says-uSwitch.html
3. Emissions from Life Energy gas use is balanced through verified carbon-reduction schemes. The main scheme we support is the Kasigau Corridor REDD project which helps protect 500,000 acres of dryland forest in southeastern Kenya. More information about the project can be found here: http://www.coderedd.org/redd-project-devs/wildlife-works-carbon-kasigau-corridor/