Commenting on the Business, Energy and Industrial Strategy Select Committee’s recommendation that the Government should introduce its energy price cap bill, Richard Neudegg, Head of Regulation at uSwitch.com says:
“Though well intentioned, a widespread price cap affecting the whole of the energy market could do more harm than good. Energy companies should be doing far more to get their customers off expensive Standard Variable Tariffs, but a widespread price cap could lull energy customers into a false sense of security if they think they are protected by it.
“A record 5.5 million people switched energy provider last year, with some saving up to £491 – far more than the Government has said a cap will save them. We’re reaching a tipping point in the energy market but a cap risks undoing the good work by damaging competition, relieving the pressure on suppliers to keep prices low and improve the service they offer to their customers.
“It is crucial that the process of reforming the energy market does not start and end with this price cap. Ofgem needs to take concrete steps to avoid some of the worst unintended consequences of a cap and maintain levels of competition in the market, while also protecting the most vulnerable. This means imposing hard targets for suppliers to get customers off standard variable tariffs alongside deeper, targeted support for fuel-poor households.”
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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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