Beware energy companies bearing gifts
Don’t thank your good fortune if you’ve received a letter saying your gas and electricity is going down due to the energy price cap – as you’re still overpaying for your energy.
Last month energy regulator Ofgem cut the price cap limit by £84 for standard variable tariff (SVT) customers and £95 for pre-payment customers.
Following this, millions of households across the UK have been contacted by their energy supplier informing them about what appears to be good news.
“It might sound generous, but in fact it is just the opposite,” says Mark Gutteridge, from energy switch site Flipper, which automatically ‘flips’ customers to the best energy deal.
“If you have received one of these letters it means you are still on one of the most expensive tariffs available. There are tariffs available that will cost you 25% less than the new, lower level of your current ‘deal’, meaning a typical household can save a further £300 a year.
“With Christmas coming up and millions worried about job security or living in straightened circumstances due to the impact of coronavirus, it is vital that people aren’t fooled into overpaying, or feel like they have to cut their usage at a time when heat and light are so important.
“Research by Ofgem shows more than half of the people questioned said they would look at cutting their energy usage to reduce their bill, with only around a quarter thinking about switching to a cheaper deal – that is really worrying.”
Mark says he would like to see greater transparency for consumers.
“Energy suppliers have to let you know if they can offer a cheaper tariff on your bill, but this information is not always easy to spot unless you read your bill in detail,” he added.
“Also, it might not be obvious to consumers that they are actually on an expensive SVT as some suppliers use names like 'Energy Plan', 'Simpler Energy' or ‘Flexible’.
“I believe Ofgem should require suppliers to make this much, much clearer.”
It is estimated that the 11 million households on standard tariffs miss out on a collective annual savings of more than £3 billion by failing to switch to a competitively priced deal.
Unlike comparison sites who get paid commission by the energy providers for switching people to them, Flipper do not take money from suppliers.
Members pay an annual fee of £30 when they are switched for the first time; tariffs are checked every month and customers are automatically moved to a better tariff if they can save £50 a year. Don’t thank your good fortune if you’ve received a letter saying your gas and electricity is going down due to the energy price cap – as you’re still overpaying for your energy.
Last month energy regulator Ofgem cut the price cap limit by £84 for standard variable tariff (SVT) customers and £95 for pre-payment customers.
Following this, millions of households across the UK have been contacted by their energy supplier informing them about what appears to be good news.
“It might sound generous, but in fact it is just the opposite,” says Mark Gutteridge, from energy switch site Flipper, which automatically ‘flips’ customers to the best energy deal.
“If you have received one of these letters it means you are still on one of the most expensive tariffs available. There are tariffs available that will cost you 25% less than the new, lower level of your current ‘deal’, meaning a typical household can save a further £300 a year.
“With Christmas coming up and millions worried about job security or living in straightened circumstances due to the impact of coronavirus, it is vital that people aren’t fooled into overpaying, or feel like they have to cut their usage at a time when heat and light are so important.
“Research by Ofgem shows more than half of the people questioned said they would look at cutting their energy usage to reduce their bill, with only around a quarter thinking about switching to a cheaper deal – that is really worrying.”
Mark says he would like to see greater transparency for consumers.
“Energy suppliers have to let you know if they can offer a cheaper tariff on your bill, but this information is not always easy to spot unless you read your bill in detail,” he added.
“Also, it might not be obvious to consumers that they are actually on an expensive SVT as some suppliers use names like 'Energy Plan', 'Simpler Energy' or ‘Flexible’.
“I believe Ofgem should require suppliers to make this much, much clearer.”
It is estimated that the 11 million households on standard tariffs miss out on a collective annual savings of more than £3 billion by failing to switch to a competitively priced deal.
Unlike comparison sites who get paid commission by the energy providers for switching people to them, Flipper do not take money from suppliers.
Members pay an annual fee of £30 when they are switched for the first time; tariffs are checked every month and customers are automatically moved to a better tariff if they can save £50 a year.
