Gap between cheap and pricey energy tariffs up 32% from last year
According to First Utility’s analysis, the gap between the cheapest tariff on the market and the average Big Six (British Gas, EDF, E.on, NPower, Scottish Power and SSE) standard variable rate has risen from £232 a year to £305 a year at typical usage.
As approximately 70% of the UK are on a standard variable tariff with the Big Six, and First Utility’s data shows that almost three quarters of the population haven’t switched tariff or supplier for the last three years, households could have missed out on savings of at least £750.
The analysis comes as First Utility launches its ‘HD Electricity’ advertising campaign which aims to show that electricity does the same job, regardless of price.
Ed Kamm, chief customer officer at First Utility said: “For too long the Big Six have been exploiting their disengaged customers by keeping them on their most expensive tariffs – despite the huge savings available for those who switch.
“The fact that most households could have saved enough over the last three years to treat the family to a break at Disneyland shows they’re taking the Mickey.
“We want to help the nation save billions by giving them consistently low prices and doing the opposite of the industry norm – putting them in control. We do this through better insights into their usage and spend, and through innovative tools to help them waste less.”
Figures from Cornwall Energy show that independent suppliers account for almost 15% of the market share and data released by switching site Go Compare reveals that nearly half (43%) of all switchers are now choosing challenger providers such as First Utility, over the Big Six providers.