From 1 October 2019, customers on Standard Variable tariffs and other default energy tariffs will see their bills cut by an average of £75 (6%).
Some, like Ofgem will call that good news. To us, paying your energy supplier £300 over the odds for what is basically a stream of electrons and undifferentiated methane molecules is not something we'd be celebrating. But then again, we run an energy comparison website - we don't like over-paying a penny more than we have to.
The shocker in all this is that Ofgem's Energy Price Cap has somehow managed to hoodwink 11 million households into thinking that they are actually getting a fair deal for their energy.
If you are one of the 11 million customers that insists on paying a 30% price premium for their energy, there is at least some good news for you - relatively speaking that is. There are others worse off even than you.
We've uncovered a batch of truly lousy energy deals. Not only are they worse than the current inflated price cap, but will also not come down on 1 October 2019. Which means that customers on these deals are paying 39-57% plus above competitive market rates.
|Supplier||Tariff||Average Bill (£)||Over priced by (1)|
|EBICo||Ebico Zero Green Fixed v2||£1,367||£467 (52%)|
|E.ON||Fix 2 Year v2||£1,302||£402 (45%)|
|British Gas||HomeEnergy Secure Feb 2021||£1,260||£360 (40%)|
|npower||Price Freeze March 2023||£1,255||£355 (39%)|
|Green Energy UK||Sparkling Summer 2020 (2)||£1,419||£519 (57%)|
Joe Malinowski, founder of the award-winning energy price comparison website TheEnergyShop.com commented.
"Would anyone willingly pay £1.69 per litre for petrol when they knew the right price was £1.30? That would be insane, right? Yet 11 million consumers are doing exactly that, day in day out, by sticking on Standard Variable energy Tariffs."
Joe Malinowski, continued
"But it gets worse. Some customers on truly lousy legacy energy deals are paying 40% and even 50% above market rates. It's criminal."
Joe Malinowski, concluded
"This may come as a surprise to many, but the energy price cap is absolutely not doing consumers any favours. By creating a false sense of security, it simply locks households into a cycle of overpaying on their energy bills; £25 a month, month in month out. Consumers really need to break free and start looking after their own money. It all starts with a quick energy price comparison."
Energy usage is based on current Ofgem average typical consumption values - 12,000 kWh a year for gas usage and 3,100 a year for electricity usage.
Analysis is based on Standard electricity meters only (does not include Economy 7 or night time usage meters). Energy bills are calculated for each energy region and then averaged. Average energy bills are calculated for the 2 main payment methods - monthly direct debit and quarterly by cheque or debit card.
These are then compared with the cheapest* deal in the market at that time. Cheapest* in our methodology means the tariff that satisfies the following criteria.
TheEnergyShop.com is an award winning independent Ofgem accredited energy price comparison and switching website. Our technology allows consumers to compare a wide range of energy prices from suppliers of domestic gas and electricity in the UK in less than 30 seconds.