“All eyes are now firmly on suppliers”: Uswitch responds to Ofgem’s announcement of the April energy price cap
Richard Neudegg, director of regulation at Uswitch.com, comments: “While no one will be describing £1,690 as cheap, after more than two years of eye-watering energy bills, hard-pressed households may finally dare to hope that the worst is over.
“A significant 12% average drop in rates from current levels – and the lowest cap in two years – is a reflection that the wholesale energy market has been moving in the right direction.
“This price cap will apply from the start of April to the end of June, so the prospect of lower prices does not help consumers trying to power through the rest of this winter.
“Prices are forecast to slightly fall again in July, but the market remains unpredictable, and it is hard to know how energy rates will look when usage rises again next winter.
“With more than a flicker of optimism for wholesale energy costs, all eyes are now firmly on suppliers to see how they will price their range of deals.
“Consumers have been patiently waiting for better tariff choices, and many are desperate to take advantage of cheaper rates. If you are on a standard variable tariff, now is the time to start keeping an eye out for deals.
“The end of the Market Stabilisation Charge also on 1st April will be a positive step, taking out an unnecessary premium on deals.
“However, Ofgem's decision to extend the Ban on Acquisition-only Tariffs (BAT) for another year is a gamble. Although this could be cut to six months, while it’s in play, fixed deals risk being more expensive than they would otherwise be, at a time when customers are finally hoping to lock in some certainty.”
ENDS
Uswitch advice: What should consumers on Standard Variable Tariffs (SVTs) do now?
Richard Neudegg, director of regulation at Uswitch.com, comments: “If you are on a standard variable tariff, now is a good time to start assessing your options.
“Some fixed deals available offer savings against the current price cap, but we expect there to be increased competition on the market now prices are set to fall in April.
“If you’re thinking of switching to a fixed deal, pay attention to any exit fees, which could cost between £25 and £150 per fuel. If you change your mind after the cooling-off period or spot a better deal you wish to switch to, you may need to pay to leave.
“If you’re not sure whether to opt for a fixed deal, perhaps consider a variable tariff, which often has no exit fees so you can switch away if a better option becomes available. There are some variable tariffs cheaper than the cap, so it’s worth running a comparison.
“For all deals, the price you are quoted to pay is an estimate based on your predicted usage. Remember, if you use more energy, you’ll pay more.
“If now is not the right time for you to switch, or you’re holding out for a different deal, sign up to email alerts with Uswitch to be the first to hear about exclusive deals and flash energy offers.”
About Uswitch
Uswitch is one of the UK’s top comparison websites for home services switching, including energy, broadband and mobiles.
More people go to Uswitch to switch their energy, broadband and mobile than any other site, and we have saved consumers over £2.7 billion off their bills since we launched in September 2000.
Free mobile app Utrack also helps households manage their home energy usage and make potential savings.
Uswitch is part of RVU, a group of online brands with a mission to empower consumers to make more confident home services, insurance and financial decisions.