If you are a student in UK, you must be aware that energy prices have been a hot topic recently. With recent adjustments fueled by the Ofgem Energy Price Cap regulation, Ofgem has set the amount of money energy suppliers can charge for electricity and gas per unit.

This regulation was originally introduced to safeguard consumers against outrageous price increases, but recent adjustments have made life tough for students. For students coming to UK from abroad, things can get even tougher regarding student accommodation in UK and utility bills.

In this blog, we will discuss how the increase in British gas prices can affect the lives of International students in UK. At Uninist, we always make sure to equip students in UK with relevant and eqwffective information – from finding student accommodation to understanding how British gas prices affect students, we cover it all!

What Is the Energy Price Cap and How Does It Affect Students?

You might be wondering, what is this Energy Price Cap? Well, it is an Ofgem regulation that determines the price energy suppliers must not exceed for delivering gas and electricity to consumers. Although it’s intended to ensure consumers aren’t charged excessively high prices, the cap has increased in recent times. This has resulted in the price of energy rising for everyone – including international students in UK.

As of the latest information, the cap increased by 2%, taking the typical household energy bill to approximately £1,755 annually. In student housing, international students occupy flats and houses in which bills are either included or added separately. The rise in energy prices will directly affect these bills, particularly in households where energy expenses are not separate and covered under the rent.

For international students in UK, who are already bombarded with accommodation, tuition, and other living costs, these hikes in utility bills can be an additional burden. Three of UK’s largest energy suppliers – Octopus Energy, E.ON Next, and EDF Energy. Have all increased their prices in line with the rise in the energy price cap, which could cause an increase in the rent of student accommodation in UK.

How Will the Hikes in Energy Prices Impact International Students?

International students, particularly new ones in UK, may struggle to cope with energy expenses on top of international study costs. Here are the reasons for that:

• Uncertain Bills: For students living in shared accommodation or student flats where energy bills are not included in the rent, an increase in energy prices will lead to uncertain utility bills. These uncertain bills will make budgeting difficult for students.
• Flat-Rate Tariffs are on the Increase: Energy firms like Octopus Energy, E.ON Next, and EDF Energy have raised their flat-rate tariffs. This includes charging all customers – including international students residing in private accommodation – a higher cost per unit of electricity and gas.
• More Rent with Bills Added: Rent charges can be raised by accommodation providers to meet the increasing energy bills. This means that students living in student accommodation might experience an increase in rent, while those with individual bills for utilities might pay more for energy use.
• Not all Accommodation Comes with Fixed Utility Rates: Some students live in accommodation where utility bills depend on usage. For international students who are not familiar with how to consume energy in UK, high utility bills at the end of the month can come as a surprise.

In essence, the increased energy price cap, combined with Octopus Energy’s, E.ON Next’s, and EDF Energy’s tariff increases, will likely lead to higher living expenses for overseas students. This is a genuine financial issue for students who are already struggling to meet tuition fees, housing costs, and living expenses in a new country.

Octopus Energy, E.ON Next, and EDF Energy – What’s Going on with Their Tariffs?

To get a complete idea of how such energy price increases will impact students, let’s examine the three largest energy suppliers – Octopus Energy, E.ON Next, and EDF Energy – and their rate strategies following Ofgem’s Energy Price Cap revisions.

• Octopus Energy: Octopus Energy has been praised for providing competitive, green energy tariffs, but even they have had to raise their prices in accordance with the price cap. For customers, Octopus offers various tariffs, such as Octopus Fixed Tariffs, where energy prices are fixed for a specific period, and Octopus Flexible Tariffs, which are connected to market prices. With increases in the price of energy, those on the flexible tariff could see their monthly bills dramatically rise.
• E.ON Next: E.ON Next offers several energy plans, including fixed tariff deals that promise price stability for a certain number of months. Yet, with the rise in the price cap, even their fixed tariff plans will see an increase in monthly payments. For international students living in shared flats or houses where they have separate energy bills, this means paying more for utilities than they anticipated.
• EDF Energy: EDF Energy, one of the largest UK energy suppliers, has also raised its energy prices as a result of changes to the price cap. Their Simply Energy and Fixed Tariffs have been revised, and while students on fixed tariffs will have some safeguard against price rises, students in shared accommodation will continue to suffer if the cost of energy increases dramatically.

How Selecting Student Accommodation with Bills Included Can Benefit

One of the best ways international students can escape the increased energy price tag is by selecting student accommodation in UK that includes bills within the rent. Here’s why:

• Fixed Costs: Bills are included in rent, so international students can avoid sudden hikes in utility bills due to the increase in the energy price cap. This helps with budgeting and eliminates any worry over changing energy costs from companies like Octopus Energy, British Gas, or EDF Energy.
• No Separate Utility Management Required: Students living in accommodation where bills are not included often face the burden of setting accounts with energy suppliers, managing bills, and sometimes disputing energy usage. This is a problem for international students unfamiliar with UK’s energy system. Student accommodation with bills included handles this on your behalf, freeing you from this burden.
• Remaining Within your Means: Having bills included in student accommodation means students know exactly how much they will pay for rent and utilities each month. With energy prices rising, this fixed cost is becoming essential, as it gives students peace of mind and helps them manage their finances more effectively.
• Energy Efficiency in Contemporary Student Accommodation: Most student accommodation with bills included is designed to save energy. Equipped with the latest appliances, LED lights, and eco-friendly materials, these properties can save energy even if costs rise, helping students avoid higher monthly bills.

The Long-Term Benefits of Choosing Bills-Inclusive Student Accommodation

Apart from the immediate relief of bills-inclusive accommodation, there are also long-term advantages for international students. Here’s why:

• Stability in Cost of Living: As tuition and rent continue to rise annually, having fixed accommodation charges that include utilities will make international students more financially stable. The money saved on energy bills can be used for social activities or studies.
• Environmental Responsibility: Most student accommodation with bills included has started adopting green practices to minimize energy usage and reduce their carbon footprint. Using renewable energy or energy-efficient devices helps save energy and supports sustainability, offering students the chance to live in a greener environment.
• Support for the Future: With energy prices likely to continue changing in the future, opting for student accommodation with bills included can help students save more. This means they won’t have to worry about how Octopus Energy, E.ON Next, or EDF Energy will adjust their tariffs over time.

Conclusion

The changing prices of British Gas and the new energy price cap are a fact that international students cannot avoid. Major suppliers like Octopus Energy, E.ON Next, and EDF Energy are revising their tariffs, and students will experience higher energy charges in the coming months. Our advice to students living in UK is to look for student housing that includes bills in their rent. This will provide financial security, save time, and eliminate the inconvenience of paying utility bills while living in an energy-efficient, green environment.

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