Price cap increase could see consumers trapped in ‘vicious circle of energy debt’, says Uswitch
Richard Neudegg, head of regulation at Uswitch.com, said:
“The pandemic has already placed many households under great financial strain. News of the price cap rising by an average of £96 from April will be a bitter pill to swallow for the 11 million default tariff customers with standard meters, many of whom are already struggling to make ends meet.
“The price cap increase is an aftershock of last year’s lockdown, partly because many customers have struggled to pay their energy bills, plunging them into debt that suppliers have been unable to recover.
“With more of us at home, usage remains high and energy costs hike, there’s a very real danger that the rising price cap will end up trapping households on default tariffs into a vicious circle of energy debt.
“The largest contributor to the price cap increase is the dramatic rebound in wholesale energy costs since the first lockdown.
“Households on variable tariffs face continued uncertainty over bills, with energy prices prone to rising and falling as the price cap pendulum swings to and fro, with changes every six months.
“The good news is that there are plenty of fixed deals available that would protect households from market volatility and provide not just certainty and reassurance, but significant cost savings.
“The best value fixed deal currently available on the market is £945 from Avro Energy, while the new price cap will sit at £1,138, for typical usage. This means that by switching, households could save themselves £193 across their annual energy bills.”
Best buy table: Cheapest fixed deals on the market as of 05/02/2021
| Supplier | Plan name | Tariff type | End date | Green? | Exit fee? | Average price |
| Avro Energy | Simple and SuperSwitcher | fixed | 12m | No | £0 | £945.32 |
| Utility Point | Just Join UP 21 12M Fixed Wk05 | fixed | 12m | Yes | £72 | £949.92 |
| E.ON | Fix Online Exclusive v59 | fixed | 12m | Yes | £60 | £950.16 |
| ScottishPower | Greener Future February 2022 B1 | fixed | 2022-02-28 | Yes | £60 | £956.49 |
| People's Energy | People's Energy Fixed Loyalty Tariff Jan 21 | fixed | 12m | Yes | £60 | £957.38 |
| British Gas | Online Fix Apr 2022 | fixed | 2022-04-30 | Yes | £40 | £957.72 |
| Pure Planet | 100% Green Direct 12m Fixed Jan21 v1 | fixed | 12m | Yes | £60 | £960.42 |
| GOTO.Energy | In Control Green Feb 2022 V1 | fixed | 12m | Yes | £80 | £961.68 |
| Shell Energy | Energy March 2022 v6 | fixed | 2022-03-31 | Yes | £60 | £967.31 |
| Entice Energy | Fixed Saver v9 Online | fixed | 12m | No | £60 | £969.67 |
Source: Uswitch.com. Prices correct as of 05/02/2021. Prices assume a household with medium annual consumption on a dual-fuel tariff, paying by monthly direct debit. To appear in this table, plans must be available in at least seven of the 14 regions.
FOR MORE INFORMATION
Ross Stebbing
Phone: 07827 836 709
Email: ross.stebbing@rvu.co.uk
Twitter: @UswitchPR
About Uswitch
Uswitch is one of the UK’s top comparison websites for home services switching, including energy, broadband and mobiles.
More people go to Uswitch to switch their energy, broadband and mobile than any other site, and we have saved consumers over £2.7 billion off their bills since we launched in September 2000.
Free mobile app Utrack also helps households manage their home energy usage and make potential savings.
Uswitch is part of RVU, a group of online brands with a mission to empower consumers to make more confident home services, insurance and financial decisions.