New Which? research reveals that British energy customers are collectively losing out on up to £5.6 billion by not switching to the cheapest deals.
Our research has discovered that customers who don’t switch are being penalised by well over £200 a year if they stay on a standard tariff.
About 75% of us are on standard variable tariffs, despite them being among the least competitive tariffs on the market.
Look at the picture on the right to see how much more you would pay, compared to the cheapest deal, if you’re on a standard tariff with one of the big six energy companies.
With new cheaper energy tariffs being introduced nearly every week, check you’re not paying over the odds for your gas and electricity. Compare energy tariffs with our independent comparison site Which? Switch.
Save over £200 on energy
Our research found that:
• Standard energy tariffs can be up to 24% more expensive than the cheapest deal on the market,
• Npower’s standard tariff costs £292 more than the cheapest deal offered by Extra Energy,
• Even staying with your existing supplier but switching away from its standard tariff could save you £269 a year,
• SSE is the only of the Big Six energy suppliers whose standard tariff price is the same as its fixed deals – but it’s still £261 more than the cheapest deal on the market.
What you can do
There are two things you can do about this. Firstly, if you are on your supplier’s standard tariff (also known as a variable tariff), it’s time to switch. Find out how much you could save with our independent comparison site Which? Switch.
Secondly, we need to change the way the energy market works. It’s not fair that the vast majority of people are paying so much more than they need to for an essential utility. Not everyone has the ability and time to track prices – and nor should they.
We think people need a ‘Price to Beat’ – a credible, independent benchmark against which to compare prices. This means consumers will be better informed about prices and better protected if they don’t switch.
You can help make a difference by signing our petition for fair energy prices.