Uswitch comments on the Ofgem price cap of £2,074 for July 1
Natalie Mathie, energy expert at Uswitch.com, comments: “The first price cap drop in two years is confirmation that the tide is finally turning for long-suffering energy customers.
“The average household can expect monthly direct debits to be set at £173, although typical seasonal usage may only see you spend £110 a month over the summer.
“While this is good news, the majority of homes are on standard variable tariffs and now subject to the volatility of price cap changes every three months.
“This is a watershed moment for energy suppliers who can now look to start offering fixed deals again, given the market conditions - and would help to encourage genuine competition in the retail energy market.
“Customers should have the choice of whether to lock in the benefits of lower wholesale prices for 12 months, just as they do in the mortgage market. If deals are priced fairly, this could offer much needed peace of mind, particularly over the high usage winter period.
"We see no reason why energy suppliers cannot offer competitive fixed deals around the £2,000 level.
“After a long spell of having no option but to try to reduce their usage at home, now is the time for energy customers to start paying attention to the market again.”
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Notes
From 1 July Price Cap average direct debit unit rates for energy;
ELECTRICITY
Unit rate: 30.11p per kWh
Standing charge: 52.97p per day
GAS
Unit rate: 7.51p per kWh
Standing charge: 29.11p per day
These are caps on unit rates (not a cap on total bills) and vary by region.
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.