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Energy league table lifts lid on the millions who pay too much

Paloma Kubiak
Written By:
Paloma Kubiak
Posted:
Updated:
14/12/2016

An energy supplier league table has launched showing the huge difference in cost for those on a standard variable rate against the savings they could make switching to a cheaper deal.

In a bid to increase transparency, energy regulator Ofgem has today published a league table allowing the millions of people on expensive standard variable tariffs to see how much they could save by switching to a cheaper provider.

The table shows that British Gas has the largest customer base on a standard variable tariff – 6.6 million (74% of all its customers) who pay an average £1,044 per year (dual fuel).

However, even without switching provider, moving to British Gas’ cheapest fixed rate tariff could save the average household £129. But based on the average price of the cheapest tariffs from 10 providers (£870), British Gas customers moving away to a supplier offering a cheaper fixed deal could save an average £174.

The 1.7 million customers on Npower’s basic tariff pay an average of £1,077 per year but they could save a staggering £261 switching to a better deal offered by the provider, or an average of £209 if ditching it.

Extra Energy customers pay the most when it comes to sticking on the standard variable rate as Ofgem found the average cost is £1,130 per year. The 36,000 customers could save £260 moving to a supplier offering a cheaper energy fix.

The table below sets out the average cost of standard variable tariffs from the largest suppliers, compared with the average cost of the cheapest deal:

cheapesttariff_table-002

The government is also today launching a call for evidence on implementing better access to customers’ energy use data to make switching easier so that families get the best deal for them.

This will ensure bill payers can access accurate electronic data on how much energy they use and share this securely with price comparison websites to help them tailor quotes to individuals, based on their actual energy use.

Business and energy secretary, Greg Clark said: “Millions of people across Britain continue to pay too much for their energy. The measures announced today are a positive step to help more people benefit from increased choice and competition.”

Gillian Guy, chief executive of Citizens Advice, added: “This league table will lift the lid on the price difference between standard tariffs and cheaper deals, helping those customers who are currently paying over the odds for their gas and electricity identify a better rate. We’d also like to see energy companies do more off their own back to help customers who are on a low income, like moving them to a cheaper deal.”