Energy customers could save £260 without switching, says Ofgem

December 14, 2016 11:04 am Published by

Energy customers could save £260 without switching, says Ofgem

  • 14 December 2016
  • From the section Business

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Millions of energy customers could save hundreds of pounds a year on their energy bills without even switching supplier, according to the regulator Ofgem.

More than 1.7 million Npower customers could save £261 a year, simply by moving to another Npower tariff.

As many as 6.6 million British Gas customers could save £129 a year, according to Ofgem.

However British Gas says it has changed its prices, so the saving is now £43.

The figures also reveal that SSE has the most customers on expensive standard variable rates.

SSE has 91% of its customers on standard variable tariffs, compared to just 9% at First Utility, according to Ofgem.

The number of people stuck on standard tariffs is controversial, as fixed-rate deals are cheaper.

In the UK as a whole, 66% of households are on standard tariffs.

Standard Variable Tariffs (SVTs)
Supplier % of customers on SVTs Difference between SVT and cheapest deal
British Gas 74% £129 (now £43)
Co-operative Energy 42% £245
EDF 56% £136
E.On 73% £41
Extra Energy 14% £154
First Utility 9% £157
Npower 59% £261
Ovo 35% £67
Scottish Power 50% £129
SSE 91% £98
Utility Warehouse* 94% £150
*tariffs are SVT for pre-payment meters
source: Ofgem

‘Increased choice’

Last month, the business and energy secretary, Greg Clark, met energy suppliers, amid claims that some of them were making large profits from customers who are on standard variable tariffs.

The industry denied profiteering.

As a result, the government ordered Ofgem to publish the comparison table, to make energy tariffs more transparent.

“Millions of people across Britain continue to pay too much for their energy,” said Mr Clark.

“The measures announced today are a positive step to help more people benefit from increased choice and competition.”

Citizens Advice said the new table would help customers, but that energy firms could still do more to help.

“We’d like to see energy companies do more off their own back to help customers who are on a low income, like moving them to a cheaper deal,” said Gillian Guy, the chief executive of Citizens Advice.

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This post was written by FSB News