Which? response to energy price cap coming into effect

Alex Neill, Which? Managing Director of Home Products and Services, said:

“The energy price cap can only be a temporary fix – what is now needed is real reform to promote competition, innovation and improved customer service in the broken energy market.

“The regulator needs to closely monitor and report on how the cap affects cheaper deals on the market to ensure that customers will still be encouraged to switch and save money.

“If you are unhappy with your current energy provider, you should look to switch now because you could save significant amounts of money.”

Notes to editors

  • Consumers looking for a better deal can compare deals with Which? Switch, a transparent and impartial way to compare energy tariffs and find the best gas and electricity provider for your needs.
  • Which? conducted research with consumers to ask about their awareness and likely bill impact of the energy price cap, via an online survey conducted by Research Now SSI of 4,054 people across the United Kingdom.
  • Data were weighted to be representative of the UK population, with questions on the energy price cap only being asked to respondents in Great Britain. This found that:
  • More people were unaware of the energy price cap (48%) than were aware of it (45%)
  • And, for those consumers who had never switched supplier – hence more likely to be disengaged and supposed to benefit most from the introduction of the price cap – the proportion who thought their bills would decrease was only 13%.
  • On 14 December customers could potentially save almost £400 a year by switching. The saving (£379) is the difference between the priciest default tariff with a Big Six company and the cheapest deal on the market. Prices are based on a dual-fuel tariff available in all regions in England, Scotland and Wales, paying by monthly direct debit with paperless bills. Energy use is based on Ofgem’s annual average usage figures for medium users (12,000kWh gas and 3,100kWh electricity). Data is from Energylinx. Prices given are averages across regions, rounded to the nearest whole pound and correct on 14 December 2018.