Energy customers could be overspending by £189 by relying on the price cap

Consumers are being urged not to rely on the energy price cap to bring down the cost of their bills.

By Gordon Holmes
Friday, 18th September 2020, 2:56 pm
You could save more by switching to more favourable rates.
You could save more by switching to more favourable rates.

A new report from MoneySuperMarket finds switching deals could save households in Scotland 17% on their bills.

In areas served by Scottish Power, 7% of households are on standard variable tariffs and savings of £179.44 are available.

The Scottish Power region price cap averages at £1,036, with the cheapest switchable tariff being £859.56.

Despite the new energy price cap of £1,042 per year for the average bill being implemented to limit rising energy costs for those on standard variable tariffs (SVT) and £1,070 for prepayment meters, in reality there are over 80 cheaper tariffs available.

The cap is due to be updated by Ofgem on October 1 and, while consumers may understandably assume that this means their bills will be kept as low as possible, the evidence suggests you will still be spending more than you need to.

The research also found that 99.88% of people on an SVT could save by switching, regardless of the price cap. Plus, with energy prices at their lowest for years, locking in to a cheaper tariff for 12 months could result in longer-term savings.

Stephen Murray, energy expert at MoneySuperMarket, said: “While the price cap may limit what you will pay, it does not limit what you can save, so relying on it to reduce your bills is unlikely to pay off.

"Savings are still possible for over 99% of the 11 million households on default standard variable tariffs, so switching your supplier is a quick and effective way to save money over and above the cap.”

You can find out more about Ofgem’s energy price cap and how you can save on your energy bills on the MoneySuperMarket website.