More than half of energy deals on the market are cheaper than the newly introduced price cap. Analysis by switching site Comparethemarket.com, and shared exclusively with Telegraph Money, reveals that of the 279 fixed-rate energy deals currently being offered 60pc would work out cheaper than the new limit on prices. Introduced on Tuesday, the cap limits prices at £1,137 a year for a household with average consumption – but the majority of consumers would still be better off switching supplier. The cheapest deal on the market is currently Utility Point’s Up energy Saver which costs £903 a year, £234 cheaper than the cap. According to Comparethemarket.com, the average consumer who switches supplier pays £921 a year.
Telegraph 4th Jan 2019 read more »
Industry experts have condemned the government’s energy price cap introduced on January 1, claiming it is ineffectual and will leave most people worse off. Under the cap, a typical household on an energy supplier’s standard variable rate (SVR) can be billed no more than £1,137 a year. It was introduced to protect the poorest customers and those who do not shop around, and Ofgem, the industry regulator, claims it will save 11 million households on SVR plans an average of £75 a year. However, an examination of the price rises undertaken last year by the “Big Six” companies — British Gas, EDF, Eon, Npower, Scottish Power and SSE — which supply energy to 21 million of the UK’s 27 million households, shows they raised their variable tariffs by an average of £89, obliterating the impact of the cap.
Times 5th Jan 2019 read more »