Following the news last week that all of the Big Six energy companies were planning to increase their tariffs, small energy firm Bulb has now announced its own rise.
Bulb said the move was necessary in light of “substantial increases” in the wholesale price of gas and electricity.
Bulb is a relatively new company, having been founded in 2015 by Hayden Wood and Amit Gudka. The company focuses on providing cleaner and cheaper energy to its 450,000 customers. All of Bulb’s customers are on the same single tariff that the company offers: Vari-Fair. This tariff will rise by 5.1% after the 12th of August, bringing the average annual bill for its customers up by £44 to £923, from £879.
Despite the price hike, Bulb’s tariff is still one of the cheapest available, and significantly cheaper than any equivalent variable tariffs offered by the big six. However, it does go to show that the pressures of rising wholesale costs do affect smaller suppliers, often more so than bigger ones.
Bulb explained that they have actually reduced their prices more times than they have increased them since 2015. This is only the third time that the company has increased their prices, whilst they’ve lowered them seven times. Bulb last changed their prices in February and said that the current price increase was in response to the fact that the cost of buying wholesale energy has risen by 21% since then.
Hayden Wood said “Bulb is committed to supplying energy at a fair price. That’s why we have one tariff for all our members, which reflects the true cost of energy. When wholesale energy costs change, our tariff does too … As a result, from August, our price will be going up by £4 per month for the average Bulb member”
Mr Wood reaffirmed Bulb’s commitment to their customers by saying: “All our members receive 60 days’ notice of the rise, double what Ofgem recommend.”
He then reiterated that Bulb remained competitively priced when compared to the Big Six energy companies “because we don’t charge exit fees, our members can leave at any time, at zero cost.
He concluded by asserting that “despite this rise, we remain one of the cheapest suppliers in the UK. We’ll continue to deliver simpler, cheaper, greener energy for all our members.”
