Commenting on the introduction of the Government’s energy price cap Bill, Richard Neudegg, Head of Regulation at uSwitch.com, says: “The Government’s introduction of this price cap might be well meaning but is fraught with potential unintended consequences that will need to be carefully managed.
“A price cap is not a magic bullet – the biggest danger is that it risks giving consumers a false sense of security that their bills will be lowered. In reality, consumers could save up to £300 right now by switching supplier or tariff – something that can take just ten minutes. This is well in excess of anything that could be achieved by a cap so it is good to see that the Government has acknowledged the importance of getting more customers switching.
“If the Bill passes, it’s critical that Ofgem gets the implementation of the cap right otherwise there is a real risk the cap could undermine competition and push up prices in the longer term.
“Whatever shape the final cap might take, it won’t be enough to fix the energy market. We must ensure suppliers do more to get consumers off poor value default tariffs once and for all, while providing more targeted support for vulnerable consumers.”
Find out how you could save over £1,000 a year with uSwitch here.
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Launched in September 2000, uSwitch is an online and telephone price comparison and switching service, helping consumers get a better deal on gas, electricity, broadband, TV services, mobiles and personal finance products including mortgages, credit cards, car and home insurance. Last year we saved UK consumers over £278 million on their energy bills alone.
Customers can sign up to an account that automatically monitors the energy market and notifies them when they can move to a cheaper tariff, while broadband customers can conduct a speed test to find out how fast their broadband is and identify the best deal for their postcode.
The multi award-winning 'Switching Made Simple' app allows customers to compare energy, broadband, credit card, mobile and SIM-only deals – and uSwitch also has a UK contact centre manned by energy and broadband experts. Customers can post their latest energy bills to FREEPOST USWITCH to receive a free call back and be guided through the comparison process, or they can email email@example.com with their postcode and usage details.
uSwitch is owned by ZPG, which operates some of the UK’s most trusted digital brands that help empower smarter property and household decisions including Zoopla, Money, PrimeLocation and SmartNewHomes.
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