This morning the Competition and Markets Authority (CMA) set out proposals to reform the energy market to help customers get a better deal by opening up competition. The report suggested that not only are many UK customers paying too much for their energy by being on non-competitive tariffs, but they are also being taken for granted by energy suppliers for remaining loyal to their supplier.
The report found that whilst competition across the energy market has benefited customers who have switched to a more competitively priced energy tariff, around 70% of domestic energy customers who have their energy supplied by the ‘Big Six’ suppliers are on their expensive standard variable rate tariffs.
The report also discovered that in total households have been overspending by a huge £1.7 billion a year on their energy bills and that the amount that homes can save by switching to a more competitive energy tariff has never been higher. The CMA’s analysis of customer savings also showed that potential savings by switching energy tariff has increased significantly over the past two years, with the average customer being able to save over £300 by switching to a better deal.
There is also good news for low-income households who have a pre-payment meter, as there will be a price cap put on the amount energy suppliers can charge for customers who receive their energy through a pre-payment meter. This cap could save each customer £80 - £90 per year on their energy bills.
The report also suggested that data of the 70% of customers who have been on a standard variable tariff with one of the big six suppliers for more than three years would be shared with other suppliers. This would allow other suppliers to promote more competitive rates to these customers.
Whether you’re within the 70% of customers who have never switched from their deal with the Big Six energy suppliers, you can’t remember the last time you switched, or you’ve switched within the past couple of years and just want to check that you’re on the right tariff for your needs, there’s no time like the present! You can input your postcode over on our homepage to start your switch or if you’d prefer to speak to someone you can give one of our friendly savings agents a call on 0800 320 2000 - we’re open from 8:45am until 5:30pm Monday to Friday and we’d be happy to help!
Want to see the full report? You can see it here on the Government's website.
Click here to run an energy price comparison, and see if you could be paying less for your gas and electricity.