Households Could Save £260 A Year Just By Switching Tariffs

Millions robbed by the energy giants: Households could save up to £260 a year just by switching to the cheapest tariff offered by their existing supplier . Households Could Save £260 A Year Just By Switching Tariffs

Industry regulator Ofgem illustrates a clear rip-off of energy prices. Families could collectively save £3.7billion a year. One comparison service shows many can save while keeping the same supplier. Households Could Save £260 A Year Just By Switching Tariffs

Millions of households could save up to £260 a year on their energy bills simply by switching to the cheapest deal offered by their existing supplier, an official price league reveals.Many can achieve even bigger savings by moving to a rival firm, the industry regulator Ofgem showed in tables laying bare the full scale of the national energy price rip-off.Collectively, families could save £3.7billion a year by switching to the cheapest tariffs, according to one price comparison service.

 Households Could Save £260 A Year Just By Switching Tariffs

The Ofgem figures reveal that two in three households are on their supplier’s standard variable tariff (SVT), which is always the most expensive.

British Gas, the country’s biggest supplier, has 6.64million accounts on its expensive SVT – three in four of its customers. They typically pay £1,044 a year, but could save £129 by moving to the cheapest deal with the firm. The saving would be around £174 if they moved to one of the ten cheapest deals available.

Nine out of ten customers with SSE – 3.86million – are on SVT deals and pay an average of £1,068 a year. They could save £98 by moving to the firm’s cheapest deal and £198 by switching to a cheaper rival.

 Households Could Save £260 A Year Just By Switching Tariffs

German-owned Npower’s 1.73million customers on its SVT pay an average of £1,077. The same firm offers a deal that is £261 a year cheaper.

There is a similar pattern with the other members of the ‘big six’ energy suppliers – E.ON, EDF and Scottish Power.

Some small companies have particularly high SVTs. More than 36,000 people using Extra Energy pay an average of £1,130 a year but could save £260 by moving to another firm.

Co-operative Energy charges £1,121 a year for its SVT. The 96,000 households on this tariff could save £245 a year by moving to the firm’s cheapest deal.

Business and Energy Secretary Greg Clark said the new tables would encourage households to shop around.

Millions of people across Britain continue to pay too much for their energy,’ he added.

German-owned Npower’s 1.73million customers on its standard variable tariff pay an average of £1,077. The same firm offers a deal that is £261 a year cheaper

But the consumer group Which? is sceptical that publication of the tables will have much effect, saying firms must do more to encourage people to switch to cheaper deals.

Mark Todd, of the price comparison website Energyhelpline, said the tables had ‘exposed the extent of over-payment for energy’.

He added: ‘SVT energy customers could save an astounding £3.7billion simply by switching to the cheapest tariff.’

Claire Osborne, of the price comparison website uSwitch, said: ‘These figures underline that loyalty in the energy market simply doesn’t pay.’

Lawrence Slade, of the industry body Energy UK, said: ‘We urge all customers to make sure they are taking advantage of all the deals on offer. Switching is easier and quicker than ever.’

 

 

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Households Could Save £260 A Year Just By Switching Tariffs
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