Electricity prices are set for another rise as oil prices have crept up above the $ 70 per barrel mark again. It’s probably time to evaluate your supplier and see whether you can maintain the lowest prices for your household.
Predicting future price increases is extremely difficult to determine with any accuracy but one thing you can do to keep ahead of the game is to keep abreast with company news revolving around the major energy investments. This can give vital indications of impending electricity prices.
Take EDF Energy, for example. Last month, chief executive Pierre Gadonneix announced that he wished to raise electricity prices by a massive 20 per cent over the next three to four years, in order to cover the company’s investments in future technology. The company needs to invest in technology in order to secure more energy supplies. One month later and EDF have reported a 1.9 per cent increase in electricity prices for home owners and a 2.8 per cent tariff increase for business owners.
With the rising oil prices, it’s inevitable that all of the suppliers will push up their electricity prices by some margin but EDF’s declaration sets them apart from their competitors. The company is looking to secure future investments which will require capital. The company can, of course, generate capital from its investors (in this case the French state) but one of their best ways of being able to secure additional finances is through increasing prices.
EDF’s declaration should give a clear warning to customers that prices are set to rise, not just incrementally with the rising oil price, but dramatically to secure future energy. In which case, it’s probably time to switch utility providers. Using the internet to seek out the best deals online – armed with the knowledge that some companies are due for bigger price hikes than others – should help guide you to the safest bet for cheaper electricity prices.
Through keeping your ear to the ground on company announcements and recognising when key investments are going to require capital injections, you will be able to stay ahead of the competition. This will give you an edge, knowing the best time to switch your supplier to guarantee the best electricity prices.