Days before the energy price hike, a quarter of consumers (27%) on Standard Variable Tariffs say they haven’t seen any communication from their supplier about their price rise[1]
Almost half of bill-payers surveyed (47%) mistakenly believe the new £1,971 price cap is the maximum amount they can pay[2], although one in three consumers’ bills (30%) predicted to rise to more than that[3]
A third of bill-payers (35%) notified by their supplier say they were offered a fixed deal, but one in four (24%) say they were offered a tariff costing more than £2,000[4]
15% of consumers have taken out a fixed deal since January, despite the majority of tariffs costing more than the price cap[5]
Three quarters of bill-payers (75%) have taken steps to prepare for price rises, with a third (36%) turning the thermostat down, and 8% eating fewer hot meals[6]
Uswitch is providing advice on how to prepare for the rise in energy prices including taking a meter reading on 31 March.
Days before the energy price hike and many customers are trying to find ways to prepare themselves. Yet over a quarter (27%) of those on Standard Variable Tariffs say they have not seen any communication from their supplier about price rises[1], according to new research from Uswitch.com, the comparison and switching service.
Nearly 80% of households are now on Standard Variable Tariffs, including prepayment meter customers, up from 60% just before the energy crisis started[7], and they will all be directly impacted by the increase of the price cap on 1st April.
The price cap was introduced three years ago, but there is still some confusion among customers about what it means for them, with 14% of bill-payers wrongly believing the price cap is decreasing this week, when it is actually rising. This confusion is particularly strong among younger consumers aged 18 to 34, with a third (32%) believing the price cap is going down[8].
Almost half of surveyed bill-payers (47%) also mistakenly believe the price cap is the maximum amount they will pay for energy[2] - even though 30% were quoted above the cap figure when their personal consumption was used to calculate the prediction[3]. The price cap actually limits standing charges and the unit cost of energy. Meanwhile, a quarter (25%) believe the price cap changes just once a year[8].
Customers are still looking for fixed deals as one way to escape the price cap. Over a third of customers (35%) were offered a fixed deal by their supplier when they were contacted about upcoming increases to their bills[4]. One in four bill-payers (24%) were offered a tariff costing more than £2,000, and half of those offered a fixed tariff decided to take one[4].
Since January this year, one in three surveyed energy bill-payers (30%) have taken or considered taking a fixed deal, despite the majority of tariffs costing more than the price cap. In the same period, 15% of bill-payers decided to sign up for one[5].
Consumers who have seen a notification from their provider feel they have been kept well-informed about upcoming price hikes, with a third (33%) saying the information provided was clear, and 23% believing it came in a timely manner. Just under a quarter (23%) felt their supplier explained what they could do if they struggled to pay their bills, and 15% said it helped them budget for price rises[9].
In total, three quarters of bill-payers (75%) have made changes to their lifestyle and taken steps to prepare for energy price rises and ease the struggle of rising costs. A third (36%) have turned their thermostat down, and a quarter (24%) have had to cut back on non-essential spending (24%)[6].
Other popular ways of reducing energy use in the home include turning appliances off at the wall, a method tried by a quarter (25%) of consumers, while 23% have used their washing machine less and and 21% have run it at a lower temperature. Another 15% have swapped their lightbulbs to more energy efficient LEDs, while 13% have started taking showers rather than baths, and 13% are using devices on eco modes[6].
Uswitch is providing advice on how to prepare for the rise in energy prices including taking a meter reading on 31 March to make sure your use before then is charged at the cheaper rate. The Uswitch Quick Checker offers personalised information about your energy plan and a recommendation of what you should do.
Justina Miltienyte, energy policy expert at Uswitch.com, said: “Consumers are going to see significant increases in their energy bills in a few days’ time and many are trying to figure out what it means for them and what they can do to reduce the impact.
“It is hard to prepare for the shock of energy bills rising by 54% on average, but it is more important than ever that people stay engaged with the energy market and sign up to alerts to inform you when better deals become available.
“There are still a few more days to go until the price rises kick in, and there are actions you can take to make sure you feel prepared for the upcoming increases.
“Start getting into good energy saving habits now while it is warmer and your overall usage will be lower, which will stand you in good stead for the winter when you need to turn the heating back on.
“You can run cooler cycles on your washing machine, turn devices off at the walls and switch off lights when they are not in use to save energy.
“If you are eligible for the council tax rebate in April, make sure you keep an eye out for it and keep the money somewhere safe so you can put it towards your energy bills.
“If you are worried about getting into debt, get in touch with your provider as soon as possible, as they can help you find a solution.”
Uswitch is one of the UK’s top comparison websites for home services switching, including broadband, mobiles, SIM Only and insurance. We’ve saved consumers over £2.5 billion off their bills since we launched in September 2000.
In 2022, Uswitch launched its free mobile app, Utrack, to help consumers manage their home energy costs. By connecting to their smart meter, users can track their energy usage hourly, get dynamic insights and calculate potential savings with handy tips.
Uswitch is part of RVU, a global group of online brands with a mission to empower consumers to make more confident home services, insurance and financial decisions.