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Big energy firms cut prices: how switching could save you more

Paloma Kubiak
Written By:
Paloma Kubiak
Posted:
Updated:
17/02/2016

Energy providers have cut gas prices but households could save hundreds of pounds a year rather than the “paltry” £32 reduction offered by the major firms by switching supplier.

All of the big six energy companies – British Gas, EDF, E.on, Npower, Scottish Power and SSE – have now caved to pressure and cut gas prices in the past couple of weeks.

However, experts have branded the average £32 a year cut “measly” and “minimal”.

MoneySuperMarket was one of the harshest critics, saying the price reductions were “hardly enough to make a noticeable dent in your bill”.

Analysts form the comparison site say customers can save around £300 a year by switching from a standard tariff to a cheap fixed deal. That’s a collective £3.3bn.

Stephen Murray, energy expert at MoneySuperMarket, said: “We have now heard from all the Big Six energy providers about their rate cuts and are frankly underwhelmed. Suppliers have failed to pass on any real savings, so bill payers should avoid falling for these empty gestures and take control of their energy costs by switching to a cheaper fixed rate tariff.

“The most important message for anyone looking to cut the cost of their energy bills is that the best deals can be secured by switching and not by staying on expensive standard tariffs.”

Big six standard gas price cuts, announced this year: 

E.on: down 5.1% to £32
SSE: down 5.3% to £32
Scottish Power down 5.4% to£32
Npower down 5.2% to £32
British Gas down 5.1% to £31
EDF down 5% to £32

MoneySuperMarket said based on the top six tariffs, customers could pay an average of £768.13 for their gas and electricity annual bill, in comparison to the £1,063 average standard tariff provided by the Big Six providers.