‘You’ll still get VAT savings if you switch to a fixed deal’: Uswitch responds to the removal of VAT on electricity bills
Richard Neudegg, director of regulation at Uswitch.com, comments: "Removing 5% VAT on electricity bills from 1 October will be warmly welcomed by households as they head into the colder months, when energy use rises sharply. This would be £45 off a typical home’s annual bill based on the current electricity price cap.
"This change applies to electricity, not gas, but it will apply across the board regardless of tariff type, so if you switch to a fixed deal now, you’ll still get the tax saving from October.
"There is continued pressure on wholesale prices, driven by the situation in the Middle East, meaning it is likely that the October 1 price cap will increase. Some supplier predictions suggest the next price cap could rise 5% from October for a household with both gas and electricity, so this tax change could take the sting out of a potential increase.
"There's still time for customers to lock in significant savings before winter by switching to a good-priced fixed tariff.
“The cheapest deals are currently undercutting standard rates by £210 for the average household. Doing so on top of this VAT change could leave households considerably better off over the winter."
-ENDS-
