- Ofgem reduces energy price cap on Standard Variable Tariffs (SVTs) by £17 to £1,162 on average from 1 April, in response to falling gas and electricity costs
- But 11 million UK households on SVTs could be £377 better off by switching away from SVTs
- Cap on prepayment meter tariffs falls by £17 to £1,200 on average – meaning bills for those least likely to afford them remain £38 higher than other households
- Uswitch.com warns bill payers not to be lured into a false sense of security by sticking to a deal which could be costing them hundreds more a year.
- Bill payers can quickly check potential savings using new Price Cap Gap tool
- Region with biggest price cap gap is north Wales and Merseyside, at £416
Responding to Ofgem’s decision to reduce the price cap on Standard Variable Tariffs by an average of £17 per year, Uswitch.com energy expert Rik Smith said:
“If you’re one of the 11 million households still on your supplier’s default tariff, you could be forgiven for thinking that £17 a year off your energy bill is better than nothing. But that pales into insignificance when you realise you could be as much as £377 a year better off by moving away from your poor value standard deal.
“This is the warning for anyone depending on the price cap to give them a better deal: it really won’t. The price cap is still higher than it was when it was introduced a year ago, while the price of the best value deals has been plummeting for most of that time. The cheapest tariff now costs £180 less than this time last year.
“Uswitch data suggests that satisfaction with the energy market is increasing, probably because more people are switching – in response to huge price rises last April when the level of the price cap went up by £117, and due to fierce competition among energy suppliers, including big household names.”
Uswitch.com has developed a calculator allowing you to quickly check how much you could save by switching away from an SVT priced at the price cap, without needing to know how much gas or electricity you use.