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Why Is My Energy Bill So High?

Why is my energy bill so high?

Why Is Your Energy Bill So High | Double M Business Services

 

 

We’ve all been there. The quarterly energy bill hits and – as you open it – you recoil in horror from the figure staring back at you. Once you’ve recovered from the initial shock, the endless telephone labyrinth ensues… Press 1 for this… Press 2 for that… And the excruciating hold music! It’s enough for some to give in and simply resign themselves to a lifetime of extortionate energy rates.

However, nothing happens without a reason. So, it’s worth asking: why did my energy bill suddenly skyrocket?

 

 

The Big Six Five

In recent years, competition in the energy sector has declined. The trend started when E.on took over Npower during their acquisition of Innogy in November 2019. Plus, with COVID-19 negatively impacting consumer consumption and reducing industry revenues by 54%, mergers and acquisitions are still in the forecast for 2021, meaning the market is predicted to become smaller still. 

While less competition may be celebrated by energy companies, it’s usually a time for consumers to get savvy and better scrutinize the deals on offer.

 

How does that affect your bill?

When an energy company is acquired, its customers are onboarded to the acquiring company. This involves change and each change comes with a price tag, so it’s at this point that your bill may begin to inflate.

 

  • New price structure

Depending on their contract, customers may be liable to transfer over to the pricing structure of the acquiring company once their term comes to an end. However, this information is usually “hidden” in the small print. So, it’s possible that your bill is higher because you have been transferred to a new pricing structure. Usually, providing you give the required notice, you can exit your contract before moving over to the new rates.

 

  • Different product

In a bid to demonstrate sustainability and social responsibility, some energy companies offer green energy as a standard product. While – on the surface – this sounds like a good deal, it’s inevitably more expensive and this is reflected in your bill.

 

  • Administrative errors

Acquisitions are an enormous administrative undertaking and, with millions of customers’ credit and debit balances being transferred over to another customer relationship management system, there are bound to be mistakes made.  The chaos of such a venture could be another factor hiking up your bill. 

 

How Double M Business Services can help

If you have any issues with your bill, Double M Business Services is willing and able to investigate on your behalf. We do not charge you for this service. All we ask is that you allow us to reach out 6 weeks before your energy renewal date to remind you that it’s looming and offer our brokerage service. 

Don’t forget, it doesn’t cost you to take advantage of our decades of expertise.

To find out more, get in touch here. Have your utility bill to hand as either Mike or Sue will be in touch within 48 hours to start saving you money.

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