FAMILIES are paying £220 a year more for their energy than they should by not switching to a new supplier.
A key problem is that the Big Six power firms are abusing the loyalty of customers by setting their bills at or within £2 of the energy price cap.
The energy price cap was introduced at the start of the year to curb rip-off tariffs and make the market fairer for consumers.
But the Big Six energy companies are bunching their prices around the cap every time it gets updated, treating it as a target rather than a limit.
Compared to cheaper tariffs in the market, this leaves consumers out of pocket, research for rival supplier Bulb found.
In January when the price cap was launched, the Big Six collectively grouped their standard variable tariffs around the limit.
They did the same thing when the cap was updated in April and again in the summer ahead of the new limit coming into effect on October 1.
Four of them – SSE, EDF, nPower and E-ON – are charging £1179 for a home that uses the average amount of gas and electricity – exactly the amount of the cap. British Gas is £1177 and Scottish Power is £1178.
Hayden Wood, boss of Big Six rival firm Bulb said: “We’ve always supported the price cap – it’s helped families who have been overcharged on their energy for years.
“But it’s clear the Big Six treat the cap as a target and not a limit, consistently setting their standard tariffs at the maximum level allowed.
"It’s disappointing to see families continue to get a poor deal on their energy as a result of this practice.”
SPONSORED CONTENT: How to save £219 a year off your energy bills
BEAT energy price rises year after year with Switchcraft. It's free and it could save you an average of £219 a year.
- Sign up, easily compare tariffs and switch
- Once you sign up, Switchcraft will automatically find you a cheaper deal when a better tariff comes up, saving you time, hassle and money.
- It takes just 3 minutes. That's it!
- Get £5 cashback and never worry about switching again
- Click here to get saving!
News UK has a brand partnership with Switchcraft. The £5 will be paid into your bank account within four months of completing the switch.
Prepayment meter customer customers will receive a £5 Amazon voucher. Open to those 18 and over. UK residents only. Click here for full T&Cs.
Source: Read Full Article