Uswitch comments on energy price cap potential bad debt adjustment
Regarding Ofgem’s consultation about the energy price cap Richard Neudegg, head of regulation at Uswitch.com, said:
“COVID-19 has left some energy customers struggling to pay their bills, and it is right that Ofgem ensures suppliers can continue to support the most vulnerable people at this difficult time.
“Although it will not be confirmed until February 2021, we are already expecting the next energy price cap, that will apply from April, could increase significantly. This will cover both the additional costs arising from COVID-19 and the rising wholesale price of energy.
“While it can be worrying for households to see signs that the price cap will likely increase, it’s important for people to know that there are always better deals out there that also help protect against the volatility of the price cap.
“For more than half of customers who are on standard variable or default tariffs, the best way to ensure you’re not overpaying for your energy is by switching to a fixed, cheaper deal.
“The difference between today’s energy price cap, which most default tariffs track, and the cheapest fixed deal currently available is £220[1].
“We would always encourage consumers to make sure they aren’t losing out, and go online to run a quick comparison of deals on the market, as they could make significant savings by switching.”
FOR MORE INFORMATION
Ross Stebbing
Phone: 07827 836 709
Email: ross.stebbing@rvu.co.uk
Twitter: @UswitchPR
Notes to editors
1. Fix'd 20 19.0 tariff from Outfox the Market fixed for 12 months is £821.40
Source: Uswitch.com. Prices assume a household with medium annual consumption on a dual-fuel tariff, paying by monthly direct debit. Price correct as of 20/11/2020
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