The energy loyalty penalty

loyalty tax

People are losing out on a collective £1.9 billion a year for staying loyal to their energy company.

Our new research has found the difference you pay as a loyal customer against a new customer is a staggering £169 per person. The problem extends across suppliers big and small.

Supplier NameTariff NameCostStandard tariffCostDifference (£)Difference (%)
TOTO EnergySmart Summer Easy Fixed930TOTO Plain and Simple125432535%
EDF EnergySimply Online 1 Year Fix Aug20v2935Standard (Variable)125431934%
British GasEnergy Plus Protection Green July 2020v2943Temporary Dec 2020125431133%
Green Network EnergyGNE uSwitch Exclusive Spring Special V2929GNE Standard Var V1123430533%
iSupplyEnergyDiscover Green 12 months Direct 06v1965Discover Green Variable125428830%

What is the loyalty penalty?  

The loyalty penalty is the price you pay for staying loyal to the same company. Once your cheap, introductory deal is up, you roll on to an expensive tariff with your energy company.

The ‘auto-renewal’ which applies to most tariffs can be deadly, particularly when most people lose track of when their tariff comes to an end.

We have written about the loyalty penalty before after our Look After My Bills member Phil appeared on ITV news talking about how he was ripped off for years before coming on board with our service. Read more here. 

Why has nothing been done to tackle the loyalty penalty?

The energy price cap came in on the 1st of January aiming to cap excessive pricing.

The problem is the difference between the best and worst deal is still vast and a lot of people are still on the wrong side of the divide – an estimated 11 million. 

Citizens Advice launched a super complaint to the Competition and Markets Authority about the loyalty penalty in broadband, mobile and insurance.

However, the energy industry wasn’t included because the Government had already intervened with the price cap. Sadly, it appears that the price cap isn’t enough to clamp down on these practices in energy. 

What can you do about the loyalty penalty?

The most straightforward answer to the loyalty tax is switching your energy supplier every year.

Most of us understandably don’t have the time or willpower to do this. It’s hard enough remembering to update one utilities contract let alone mobile, broadband, insurance as well as all the other things we have to think about! 

The very reason we set up our autoswitching service was to combat the loyalty penalty. 

We do all the legwork for you and make sure you switch to a good price one year to the next. You’ll never have to worry about a loyalty penalty from your energy supplier. 

All supplier loyalty penalties

Supplier NameTariff NameCostStandard tariffCostDifference (£)Difference
TOTO EnergySmart Summer Easy Fixed930TOTO Plain and Simple125432535%
EDF EnergySimply Online 1 Year Fix Aug20v2935Standard (Variable)125431934%
British GasEnergy Plus Protection Green July 2020v2943Temporary Dec 2020125431133%
Green Network EnergyGNE uSwitch Exclusive Spring Special V2929GNE Standard Var V11234305335
iSupplyEnergyDiscover Green 12 months Direct 06v1965Discover Green Variable125428830%
GB Energy SupplyGB Fixed September 20 v3966GB Green Pioneer125328730%
Co-operative EnergyCo-op Fixed September 20 v3966Green Pioneer Direct Debit125328730%
Simplicity EnergyCauliflower19979Simply Variable125827928%
Tonik EnergyGo Green (1 Year) v12942Life Energy121627429%
E.ONFix 1 Year iChoosr Collective Feb 2019983E.ON Energy Plan125427128%
SSEExclusive 1 Year Fixed v2983Standard125327027%
Bristol Energy1 Year Fix Issue 33971Bristol Energy Standard Issue 4123426227%
EnergySWEnergySW Fixed (pre 21/03/2018)1011EnergySW Variable127226026%
PowershopFixed Term 12 Month 2019 Issue 8995Baseline 2019 Issue 3124825325%
Flow EnergyFlow Fixed September 20201001Flow Variable125325125%
Utility WarehouseDouble Gold Fixed 251023Value124822522%
Sainsbury's EnergySainsbury's Energy Fix and Reward v21046Standard125420820%
Nabuh EnergyZara Tariff (12 month fixed)900Nabuh Energy Rachel Tariff (12 month Variable)110820823%
ScottishPowerSuper Saver July 2020 B11066Standard125418818%
PFP EnergyTogether - Sept 2020 - fixed 931058Simple, Fair Energy124218417%
Shell EnergyFirst Fixed May 2020 Default1081Flexible125417316%
Eversmart EnergyShe's Electric901Simply Smart107317219%
EnstrogaDual Platinum1082Energy Price Cap125417216%
Zebra PowerZebra Fixed Rate July 2020 v1 Paperless966Zebra Born Free Variable 201901113516917%
Avro EnergySimple and SuperSave891Simple Energy105716619%
Lumo EnergyOnline Fixed v25911Online Variable106915817%
LECCYLECCY Two Year Fixed1087LECCY Variable124415714%
Citizen EnergyCitizEn 2 Year Fixed1090Citizen's Variable124115114%
EBICoEbico Prime 24 fixed1080Ebico Evergreen123015014%
Angelic EnergyLondon Glow 24 Month Fix1076Angelic Energy Standard Variable122514914%
Beam EnergyBeam 24 Month Saver1076Beam Energy Standard Variable122514914%
Your Energy SussexYour Energy Sussex Two Year fixed with exit fee1094Your Energy Sussex Variable124314914%
Robin Hood Energy2 Year Green Peace of Mind1080Robin Hood Energy Evergreen122814814%
RAM EnergyRAM Energy 2 year Fix1061RAM Energy Variable120814714%
Great North EnergyGreat for Two Years1060Great For Flexibility120414314%
White Rose EnergyPerennial Fixed Tariff1060White Rose Energy Fluid120414314%
Fosse EnergyFosse 241061Fosse Variable119513413%
npowerExclusive Fix October 2020 v21125Standard125412911%
Yorkshire EnergyGreen Alpaca - Fixed Until 31st July 2020934Yorkshire Energy Variable106112814%
Southend EnergySouthend Energy Fixed 21/05/191117Southend Energy Variable124312611%
Peterborough EnergyPeterborough Energy Fixed 21/05/191104Peterborough Variable122912511%
ESB Energy18 Month Price Protect online v11020Variable Electricity and Variable Gas113611511%
FairerpowerFairerpower Fixed 21/05/191141Fairerpower Variable125711510%
Green Star EnergyFix For Less 36M v11154Standard1253999%
So EnergySo Toucan - Green930So out of contract10269610%
Octopus EnergyuSwitch Octopus 12M Fixed July 2019 v2941Flexible Octopus April 2019 v11029889%
Together EnergyTogether Fixed April201046Freedom Variable1134888%
Utility PointJust Up Wk 25 Direct906Up Variable Direct987819%
Spark EnergyGet Smart July 20201178Move In Saver v91253756%
OVO Energy2 Year Fixed (All online) 21/05/191182Simpler Energy1249676%
Entice EnergyFixed Saver v11103Flexible Saver v11122182%