With a raft of energy price rises set to come into force next month, new Which? research has found that those on Big Six standard variable tariffs (SVT) could get their bills back to the equivalent of 2008 prices – a saving of around 22% – by switching to one of the cheapest available dual fuel tariffs.
Millions of consumers are still overpaying for their energy – those on an SVT with one of the Big Six are set to go up on average to £1,131 per year, after recently announced price rises have been implemented.
As speculation continues that the Government may introduce an energy price cap, those paying over the odds for their energy don’t need to wait to start saving. By switching to one of the cheapest dual fuel deals on the market, Big Six customers will be able to save themselves around £250 a year.
Energy customers looking for cheaper deals can compare deals with Which? Switch, a transparent and impartial way to compare energy tariffs and find the best gas and electricity supplier.
Alex Neill, Which? Managing Director of Home Products and Services said:
“Far too many people are still stuck on some of the most expensive deals. With five of the big six set to increase their prices, consumers could save £250 a year by switching to a cheaper deal now.
“With speculation rife that the Government may introduce a price cap, it is vital the regulator ensures that any price control makes a real difference for people struggling with their bills.”
Over 500,000 people have joined Which? in calling for ‘Fair Energy Prices’ and for energy companies to engage their customers to help them switch to a cheaper deal.
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Notes to Editors:
- Which? found that, on average, customers on standard variable tariffs with the ‘Big Six’ could be saving around £250 a year by moving one of the cheapest 10 dual fuel deals on the market.
Which? used Energylinx tariff data to calculate the average value of SVTs with big 6 providers as at March 24th 2017 (£1,131), as well as the average of the 10 cheapest tariffs across the whole market. These SVT prices include the forthcoming price changes. The prices calculated were for typical medium household use (12,500kWh per year gas and 3,100kWh electricity), by monthly direct debit. Prices were averaged across all regions, with including only tariffs available to all regions.
To estimate the SVT prices post price increases, the March data were used, with the stated price increases added if they were to be implemented after 24th March 2017. We have compared this to the cheapest 10 deals on March 24th 2017.
Gas and Electricity inflation since 2008 has been calculated using ONS Consumer Prices Index (H). Gas prices increased by 25% between 2008 and February 2017, Electricity by 23%.
A standard variable tariff is a supplier’s ‘default’ tariff. It has variable prices that can go up and down with the market, but is usually an energy supplier’s most expensive tariff.
Consumers looking for cheaper energy deals can compare deals with Which? Switch, a transparent and impartial way to compare energy tariffs and find the best gas and electricity supplier: www.which.co.uk/switch
Top tips for saving money on your energy bills: http://www.which.co.uk/