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You could be paying £320 more than you should be for energy

Nic McBride

Nic McBride
Sep 28, 2017


Customers on basic gas and electricity tariffs are paying £320 more than they need to.   

The average price of a standard variable tariffrom the Big Six suppliers stood at £1,142, as of 28 August, according to Ofgem. 

By comparison, the cheapest tariff on the market was nearly £320 less. 

ARE YOU PAYING MORE THAN YOU NEED TO FOR ENERGY?

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Ofgem said it was an "increasing trend" as SVTs got further away from the cheapest option. 

"This is mainly as a result of the continued increase in the price of SVTs and some recent reductions in the cheapest tariffs," it stated. 

The average price of a SVT is only going to go up, as the data does not even include British Gas’ price hike that came into effect on 15 September.   

 

How do I avoid paying more than I need to? 

We've heard all the excuses for not switching energy companies. 

But switching is the best way to save, and if you need help we have an easy guide here. 

Don't think you can save? It might be worth a quick check, especially if there is £320 at stake. 

 

What is a SVT? 

Standard variable tariffs are often the most expensive on the market. 

Energy giants made nearly £900 million by luring customers in with cheap deals – then shifting them on to the most expensive tariffs when those initial contracts expire.

It is easy to find yourself being transferred onto a more expensive rate and paying more than you should. 

Don’t get caught out! Switch when your fixed deal ends. 

ON A BASIC TARIFF? CHECK AND SEE IF YOU CAN SAVE

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The end of the SVT? 

Eon is planning to scrap its standard variable tariff - a first for the Big Six energy giants. 

The German-owned company has said it will put all customers onto fixed tariffs if they get a smart meter. 

Though they have been caught bullying some customers about those. 

 

Switching energy 

If you switched electricity or gas in July, you are far from alone: 351,000 people changed electricity provider that month - the highest recorded in the month of July since 2011. 

Meanwhile 306,000 people switched gas - the highest level of gas switching in the month of July since 2009. 

ARE YOU BEING RIPPED OFF BY YOUR ENERGY PROVIDER?

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