Uswitch comments on final October 1 price cap prediction from Cornwall Insight
Natalie Mathie, energy expert at Uswitch.com, comments: “This final price cap prediction suggests that energy rates could be dropping for a second consecutive quarter, which will be a welcome relief to consumers.
“If the cap is confirmed at this level, then the price of energy for the average household will be 7% lower during October, November and December — but these are some of the coldest months of the year and when households use more energy.
“Despite another drop in rates, bills are still high when compared to pre-crisis levels, so households will still need to be mindful of their energy usage over winter. If the prediction is accurate then the average household would save £49 between October and December based on higher usage in these months[1].
“This cap will only be in place until the end of the year, and Cornwall Insight predicts that rates will rise again in January — to above the current July price cap rate — when usage peaks over winter, so this slight drop may only be temporary.
“Relying on the price cap means that your energy costs can go up or down every three months, so some households may value the certainty of locking in a fixed deal before rates rise again.”
ENDS
Notes to editors
The average household with typical consumption could pay £49 less in October to December, than they would have if rates had stayed the same as Q3. This is based on average consumption over the period of October to December using current TDCVs. Using new TDCVs, the saving would be £47.
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.