Nearly seven in ten households (66%) are on expensive standard variable energy tariffs and could save by switching, according to the latest figures from the energy regulator
Ofgem says people can save over £300 by ditching expensive standard variable tariffs for the cheapest deal, often a fixed-term tariff.
The average annual cost of the larger energy suppliers’ standard variable tariff was £1,066, as of 28 July. In comparison, the cheapest tariff available on that date – a one-year fixed tariff – cost £758 – a saving of £308.
Rachel Fletcher, Ofgem senior partner for consumers and competition, says: “Great deals are there for the taking. There are very competitive offers and many more suppliers to choose from.”
Two reasons to check if you can switch and save sooner rather than later are:
We’re coming into autumn and winter, when households typically use more energy, and
Co-op Energy has announced it will raise prices by up to 6% from 1 October, which experts have warned could see other suppliers following suit.
In August, Ofgem announced plans to introduce a series of measures to create a “more competitive, fairer energy market”, which include capping prices for those with pre-payment meters.
However, Ofgem’s figures do show that switching is on the up. In the first half of the year, more than 3.8 million switches took place as people changed their energy supplier – around a million more than the same period last year.
The 3.8 million figure includes 1.6 million people switching gas supplier, and 2.2 million switching electricity.