5 million energy customers face potential £235m bill increase as level of safeguard price cap increases again

Ofgem has today announced that the cap on energy tariffs for customers with prepayment meters and one million vulnerable customers receiving the Warm Home Discount will rise £47 to £1,136 from 1 October this year. The energy regulator says that the increase is down to the rise in the wholesale cost of energy since the cap was last updated.

Rik Smith, Uswitch.com energy expert, says: “Wholesale energy prices have skyrocketed since the last prepayment cap review in February, so it’s no surprise that Ofgem has increased the level of the cap again.

“Since the prepayment cap has been introduced we have seen all the major suppliers price up to its maximum level. With this new higher cap, it’s likely they’ll do the same, handing an average £47 price rise to some of the most vulnerable energy customers.

“This is a stark reminder that even when there is a cap in place, prices can still rise. The only way prepayment customers can truly protect themselves is to switch to a cheaper deal or fix their tariff for additional security. Even if a prepayment customer is in debt to their supplier, they can still switch – as long as the debt is under £500 per fuel and the new provider agrees to take on the debt.

“The cheapest prepayment tariff is currently £159 lower than what the new cap will cost from October, but this is still one of the most expensive ways a household can pay for their energy. If possible, switching to a credit meter and taking advantage of some of the cheapest deals or longer fixes on the market is a much cheaper way to pay for a household’s energy. While all the big six suppliers offer meter changes for free, subject to a credit check, smaller suppliers may charge around £50 for a meter change.”

Find out how you could save over £1,000 a year with Uswitch here.

FOR MORE INFORMATION

Ailene Barr

Phone: 020 3872 5610

Email: ailene.barr@uswitch.com

Twitter: @uswitchPR

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