Uswitch comments on Cornwall Insight's final energy price cap prediction for January 2024
Uswitch has issued the below comment from its director of regulation, Richard Neudegg, in response to Cornwall Insight's final price cap prediction for January 2024.
Richard Neudegg, director of regulation at Uswitch.com, comments: “A week ahead of the price cap announcement, this is a firm prediction that energy costs will rise by 5% for households on standard variable tariffs in January.
“This price rise will come at the worst time of year for households, who will be using more energy at home during one of the coldest points of the winter.
“Consumers on standard variable tariffs are particularly exposed to fluctuations in the wholesale energy market, as the price cap now changes every three months.
“This quarterly price change is piling extra financial uncertainty on consumers, as it’s challenging to budget for a bill when rates can change so frequently.
“Fixed rate deals remain the only way that consumers can secure any certainty about what they will pay for energy for a year.
“Yet more still needs to be done by Ofgem to encourage suppliers to offer fixed deals more widely and at more competitive prices.
“The price cap is no longer fit for purpose, and the system needs reforming to create a more competitive market, which also protects households.”
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.