Bristol Energy has announced it is increasing its standard variable tariff (SVT) for the first time in its history due to “increased uncertainty”.
The company, which was launched in February 2016, blames rising wholesale energy prices for the 12.6 per cent increase.
It will mean an average increase of £10.68 per month.
Bristol said the rise is slightly higher than it previously predicted due to “increased uncertainty in the energy market” but added 82 per cent of customers are unaffected and it was still cheaper than the big six suppliers.
The company also said wholesale electricity prices have risen by around 15 per cent since November 2016 while gas has risen by 30 per cent.
It added: “Increased uncertainty across the world is causing commodities to rise, including gas and electricity. Oil prices have increased by 44 per cent since November 2016, largely because of conflicts in the Middle East, and ongoing tensions and trade disagreements between the USA, Europe, Russia and China.”
Furthermore the company blamed an almost 400 per cent increase in the cost of carbon certificates which pushes up the cost of energy.
Government policy costs including clean energy subsidies and the smart meter programme were other reasons cited.
The rise for new customers was announced earlier this month and will come into effect on 8 September.
Bristol Energy recently received a fresh £2 million injection of funds from its local authority parent, Bristol City Council. It increased the authority’s total investment in the energy company to £26.2 million.
Thrive Renewables will provide 0.8MW of renewable wind power to Bristol Energy after signing a new deal with the council-owned company.
Bristol Energy has purchased the renewable electricity produced by Thrive’s Clayfords windfarm near Strichen in Aberdeenshire, Scotland for 12 months from September 2018.