Things are about to get a whole lot better for household energy.
Households have been paying about £1.7 billion a year MORE on energy than they would if the market was truly competitive, according to findings from the Competition and Markets Authority (CMA).
Following an 18-month investigation into the energy market, the CMA has put forward a number of proposals that it claims will reform the energy market and mean big savings for the general public.
These include:
- An Ofgem-controlled database which will allow rival suppliers to contact people who have been stuck on their supplier’s uncompetitive standard tariff for three years or more;
- A price cap for the four million households who are on prepayment meters until 2020. They face limited competition from suppliers and so don’t have as many options when it comes to switching. With this new measure they could save £90 a year on average
- Moves to make it easier for third parties like price comparison websites to help people find better deals by giving them access to relevant information like customer meter numbers and allowing them to negotiate exclusive deals with suppliers.
- Taking away the four tariff rule where suppliers can only offer four tariffs at once. Rather than make things less confusing as Ofgem predicted, it seems to have limited competition, particularly for eco tariffs and deals for the elderly.
Roger Whitcomb, chairman of the CMA's investigation, pointed out that a massive 70% of people are sat on standard energy tariffs. These are the uncompetitive deals you move onto at the end of a fixed tariff and cost hundreds more each year than the cheapest tariffs.
Whitcomb added that the largest suppliers have learned to take their customers for granted, not just on price but with their service too.
He continued: "Given the scale of the problems and the potential savings on offer, we think bold measures like giving rival suppliers the chance to contact long-standing [standard tariff] customers are justified."
How to get cheaper energy NOW
One thing that is clear from the CMA's report is that YOU have the power to save on your energy bills if you choose to. Don't be one of the 70% throwing money away on a rubbish energy deal!
Instead, be one of the savvy switchers who are hundreds of pounds a year better off as a result of signing up to a cracking tariff like the ones detailed below.
|
Energy supplier |
Tariff name |
Average UK price* |
|
First Utility |
First Fixed April 2017 v7 |
£751.49 |
|
First Utility |
First Fixed April 2017 v6 |
£757.98 |
|
Go Effortless |
Domestic Energy January 2016 v1 |
£764.10 |
|
npower |
Online Fix March 2017 |
£765.00 |
|
Extra Energy |
Fresh Fixed Price Oct 2017 v1 |
£770.00 |
|
So Energy |
So Caterpillar |
£773.24 |
|
Extra Energy |
Bright Fixed Price Oct 2017 v1 |
£775.00 |
|
Places for People |
Together February 2017 fixed 31 |
£778.27 |
|
E.ON |
Energy Fixed 1 Year v19 |
£779.32 |
|
Extra Energy |
Clear Fixed Price Oct 2017 fixed v1 |
£781.00 |
Prices based on average consumption as measured by Ofgem of 12,500kWh of gas and 3,100kWh of electricity and a customer paying by monthly direct debit including VAT.
Start your search with the loveMONEY energy centre today. Unsure of what to do? Read our guide on How to switch energy supplier.
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