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The rewards for switching energy supplier plummet in a year

The rewards for switching energy supplier plummet in a year, making it the smallest difference since 2012

  • Households can save just a third of what they could a year ago by switching
  • It was the smallest difference in savings since 2012, watchdog Ofgem found  
  • Last year the cheapest deal cost £338 less than the average default tariff 

Households can save just a third of what they could a year ago by switching energy supplier. 

Customers who ditched expensive default or standard variable tariffs in favour of the cheapest on the market could cut their bills by £103 last month. 

It was the smallest difference in savings since 2012, energy watchdog Ofgem found.

Last year the cheapest deal cost £338 less than the average default tariff, down from £400 in 2019. 

Households can save just a third of what they could a year ago by switching energy supplier

The findings come as Ofgem prepares to raise its price cap, hiking bills by £150 for 15million households. 

Avro Energy’s Simple and Flow 12-month tariff was the cheapest on the market at £1,035 a year in July, according to comparison site GoCompare. 

In the same month in 2020, the cheapest fixed deal was £788 with Outfox The Market. 

The current price cap, which limits how much firms can charge customers on standard variable tariffs, is £1,138 a year, based on average usage. 

This is expected to rise to £1,288 from October as wholesale prices soar. 

Experts are also seeing more fixed-rate energy deals topping the price cap. 

Karin Sode, managing director of People’s Energy, says: ‘No energy supplier can keep their tariffs low any more without them being loss-making. 

‘Energy suppliers have no choice but to have higher tariffs to cover the costs associated with buying the energy.’      

Read more at DailyMail.co.uk