It is always welcome news when a government carries through on one of its election pledges – especially one that is likely to affect millions of ordinary people.
And this is the likely impact of a new Domestic Gas & Electricity (Tariff Cap) Bill, introduced into Parliament and announced by the Department for Business, Energy and Industrial Strategy on the 26th of February 2018.
The Bill empowers the energy regulator Office of Gas and Electricity Markets (Ofgem) to limit or to cap the price charged by companies for customers on their standard variable rate – the rate which varies according to the base rate of the Bank of England and which is usually paid by consumers when the period of a previous fixed rate deal has expired. The end of a fixed rate deal and its reversion to the supplier’s standard variable rate may entail a jump in price of as much as £300 a year, according to Economics Online.
The idea of a price cap on so-called standard variable rates charged by energy companies has been under consideration for some time, explains Economics Online, which cites assessments from both Ofgem and the Competition and Markets Authority (CMA) that energy suppliers do not deliver “good outcomes” for all their customers.
In its report of the 26th of February 2018, the BBC described energy companies’ standard variable rates as “a rip-off”.
The proposed new cap on dual energy prices (for both gas and electricity) is intended to come into effect before next winter and is designed to offer protection to the 11 million or so households currently paying the highest energy tariff, the standard variable rate. The cap is intended to stay in place until 2020 when the level is to be reviewed and may be extended on a year by year basis until 2023, explained the Bloomberg news organisation on the 26th of February 2018.
Compare and switch your energy supplier
The cap on dual energy prices charged at the standard variable rate is, of course, welcome news for the consumer.
But it still leaves open – and very much worth your while – the opportunity to compare gas and electricity prices to track down the best energy deals.
When you compare dual energy prices for obtaining both your gas and electricity needs from the same supplier, you are likely to discover the money-saving discounts available. By using our comparison website, and answering a few simple questions about your existing supplier and present consumption, you may identify the best energy deals around.
When you have found the most appropriate tariff and are convinced that a switch may save you – potentially hundreds of pounds a year – the move may be made with all the ease, simplicity and convenience of doing so online.
Comparing dual energy prices, choosing the tariff that suits your individual needs and circumstances, and making the switch may all be done from the comfort of your own home – whilst also cashing in on the discounts typically offered by energy suppliers when you conduct your transactions online.
None of it involves any fuss, bother or disruption to your gas or electricity installations – the same pipes and cables are used whichever supplier you choose. All that you see is the reduction in what you are paying the new supplier for the energy you consume.
If you use an accredited energy comparison website such as ours, you have the added confidence and peace of mind in knowing that when you compare dual energy prices, the results are backed by a Confidence Code agreed with Ofgem.
With the prospect of saving several hundreds of pounds a year on your energy bills, you are probably keen to get started. We have made that simple and straightforward with our energy cost comparison service by asking just a few basic questions, such as:
- your postcode – some of the smaller, and often more competitively priced, suppliers operate in only some parts of the country;
- the name of the tariff you are on at the moment – ask your supplier if you are unsure what it is called;
- the amount you have spent on energy during the past year – a quick check of the bills you received or the payments you made online will tell you what that is; and
- the way you currently pay for the energy you consume.
On the basis of the information you provide, we may help you to compare the best energy deals in your area, choose the most competitive supplier and guide you through the simple steps required for completing any switch.
Don't get ripped off!
Spending 5 minutes could save you over £300