Ofgem: Energy Customers May save up to £260 Without Switching

Energy market regulator Ofgem has claimed that millions of UK customers could save hundreds of pounds per year on their energy bills, without the need to switch supplier.

Figures from Ofgem indicate that more than 1.7 million Npower customers could save as much as £261 a year by moving to another Npower tariff. Npower have stated that customers are unlikely to be able to save £261, as fixed-price deals are typically limited to a certain number of customers.

Nearly 6.6 million customers of British Gas may save £129 per year, although British Gas has argued that it has changed its prices so the saving is now £43 a year. The Ofgem figures demonstrate that almost all of SSE customers are on the most expensive form of tariff, with 91% of customers on standard variable tariffs, in contrast to just 9% at First Utility. In the UK in total, standard tariff contracts represent 66% of households.

Supplier % of Customers on Standard Variable Tariffs (SVTs) Difference between SVT and cheapest deal
British Gas 74% £129 (now £43)
Co-operative Energy 42% £245
EDF 56% £136
E.On 73% £41
Extra Energy 14% £154
First Utility 9% £157
Npower 59% £261
Ovo 35% £67
Scottish Power 50% £129
SSE 91% £98

In November, the business and energy secretary, Greg Clark, met with various energy suppliers, following claims that some suppliers were making large profits as a results of customers who are on standard variable tariffs. The industry denied profiteering, but continues to come under pressure to reduce its prices for standard tariffs. Three of the biggest suppliers have subsequently frozen their tariffs through the winter as a result. Despite this Ofgem chose to publish its comparison table to highlight the widespread difference between the cheapest and most expensive tariffs.

Source: BBC

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