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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 Name | Tariff Name | Cost | Standard tariff | Cost | Difference (£) | Difference (%) |
---|---|---|---|---|---|---|
TOTO Energy | Smart Summer Easy Fixed | 930 | TOTO Plain and Simple | 1254 | 325 | 35% |
EDF Energy | Simply Online 1 Year Fix Aug20v2 | 935 | Standard (Variable) | 1254 | 319 | 34% |
British Gas | Energy Plus Protection Green July 2020v2 | 943 | Temporary Dec 2020 | 1254 | 311 | 33% |
Green Network Energy | GNE uSwitch Exclusive Spring Special V2 | 929 | GNE Standard Var V1 | 1234 | 305 | 33% |
iSupplyEnergy | Discover Green 12 months Direct 06v1 | 965 | Discover Green Variable | 1254 | 288 | 30% |
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 Name | Tariff Name | Cost | Standard tariff | Cost | Difference (£) | Difference |
---|---|---|---|---|---|---|
TOTO Energy | Smart Summer Easy Fixed | 930 | TOTO Plain and Simple | 1254 | 325 | 35% |
EDF Energy | Simply Online 1 Year Fix Aug20v2 | 935 | Standard (Variable) | 1254 | 319 | 34% |
British Gas | Energy Plus Protection Green July 2020v2 | 943 | Temporary Dec 2020 | 1254 | 311 | 33% |
Green Network Energy | GNE uSwitch Exclusive Spring Special V2 | 929 | GNE Standard Var V1 | 1234 | 305 | 335 |
iSupplyEnergy | Discover Green 12 months Direct 06v1 | 965 | Discover Green Variable | 1254 | 288 | 30% |
GB Energy Supply | GB Fixed September 20 v3 | 966 | GB Green Pioneer | 1253 | 287 | 30% |
Co-operative Energy | Co-op Fixed September 20 v3 | 966 | Green Pioneer Direct Debit | 1253 | 287 | 30% |
Simplicity Energy | Cauliflower19 | 979 | Simply Variable | 1258 | 279 | 28% |
Tonik Energy | Go Green (1 Year) v12 | 942 | Life Energy | 1216 | 274 | 29% |
E.ON | Fix 1 Year iChoosr Collective Feb 2019 | 983 | E.ON Energy Plan | 1254 | 271 | 28% |
SSE | Exclusive 1 Year Fixed v2 | 983 | Standard | 1253 | 270 | 27% |
Bristol Energy | 1 Year Fix Issue 33 | 971 | Bristol Energy Standard Issue 4 | 1234 | 262 | 27% |
EnergySW | EnergySW Fixed (pre 21/03/2018) | 1011 | EnergySW Variable | 1272 | 260 | 26% |
Powershop | Fixed Term 12 Month 2019 Issue 8 | 995 | Baseline 2019 Issue 3 | 1248 | 253 | 25% |
Flow Energy | Flow Fixed September 2020 | 1001 | Flow Variable | 1253 | 251 | 25% |
Utility Warehouse | Double Gold Fixed 25 | 1023 | Value | 1248 | 225 | 22% |
Sainsbury’s Energy | Sainsbury’s Energy Fix and Reward v2 | 1046 | Standard | 1254 | 208 | 20% |
Nabuh Energy | Zara Tariff (12 month fixed) | 900 | Nabuh Energy Rachel Tariff (12 month Variable) | 1108 | 208 | 23% |
ScottishPower | Super Saver July 2020 B1 | 1066 | Standard | 1254 | 188 | 18% |
PFP Energy | Together – Sept 2020 – fixed 93 | 1058 | Simple, Fair Energy | 1242 | 184 | 17% |
Shell Energy | First Fixed May 2020 Default | 1081 | Flexible | 1254 | 173 | 16% |
Eversmart Energy | She’s Electric | 901 | Simply Smart | 1073 | 172 | 19% |
Enstroga | Dual Platinum | 1082 | Energy Price Cap | 1254 | 172 | 16% |
Zebra Power | Zebra Fixed Rate July 2020 v1 Paperless | 966 | Zebra Born Free Variable 201901 | 1135 | 169 | 17% |
Avro Energy | Simple and SuperSave | 891 | Simple Energy | 1057 | 166 | 19% |
Lumo Energy | Online Fixed v25 | 911 | Online Variable | 1069 | 158 | 17% |
LECCY | LECCY Two Year Fixed | 1087 | LECCY Variable | 1244 | 157 | 14% |
Citizen Energy | CitizEn 2 Year Fixed | 1090 | Citizen’s Variable | 1241 | 151 | 14% |
EBICo | Ebico Prime 24 fixed | 1080 | Ebico Evergreen | 1230 | 150 | 14% |
Angelic Energy | London Glow 24 Month Fix | 1076 | Angelic Energy Standard Variable | 1225 | 149 | 14% |
Beam Energy | Beam 24 Month Saver | 1076 | Beam Energy Standard Variable | 1225 | 149 | 14% |
Your Energy Sussex | Your Energy Sussex Two Year fixed with exit fee | 1094 | Your Energy Sussex Variable | 1243 | 149 | 14% |
Robin Hood Energy | 2 Year Green Peace of Mind | 1080 | Robin Hood Energy Evergreen | 1228 | 148 | 14% |
RAM Energy | RAM Energy 2 year Fix | 1061 | RAM Energy Variable | 1208 | 147 | 14% |
Great North Energy | Great for Two Years | 1060 | Great For Flexibility | 1204 | 143 | 14% |
White Rose Energy | Perennial Fixed Tariff | 1060 | White Rose Energy Fluid | 1204 | 143 | 14% |
Fosse Energy | Fosse 24 | 1061 | Fosse Variable | 1195 | 134 | 13% |
npower | Exclusive Fix October 2020 v2 | 1125 | Standard | 1254 | 129 | 11% |
Yorkshire Energy | Green Alpaca – Fixed Until 31st July 2020 | 934 | Yorkshire Energy Variable | 1061 | 128 | 14% |
Southend Energy | Southend Energy Fixed 21/05/19 | 1117 | Southend Energy Variable | 1243 | 126 | 11% |
Peterborough Energy | Peterborough Energy Fixed 21/05/19 | 1104 | Peterborough Variable | 1229 | 125 | 11% |
ESB Energy | 18 Month Price Protect online v1 | 1020 | Variable Electricity and Variable Gas | 1136 | 115 | 11% |
Fairerpower | Fairerpower Fixed 21/05/19 | 1141 | Fairerpower Variable | 1257 | 115 | 10% |
Green Star Energy | Fix For Less 36M v1 | 1154 | Standard | 1253 | 99 | 9% |
So Energy | So Toucan – Green | 930 | So out of contract | 1026 | 96 | 10% |
Octopus Energy | uSwitch Octopus 12M Fixed July 2019 v2 | 941 | Flexible Octopus April 2019 v1 | 1029 | 88 | 9% |
Together Energy | Together Fixed April20 | 1046 | Freedom Variable | 1134 | 88 | 8% |
Utility Point | Just Up Wk 25 Direct | 906 | Up Variable Direct | 987 | 81 | 9% |
Spark Energy | Get Smart July 2020 | 1178 | Move In Saver v9 | 1253 | 75 | 6% |
OVO Energy | 2 Year Fixed (All online) 21/05/19 | 1182 | Simpler Energy | 1249 | 67 | 6% |
Entice Energy | Fixed Saver v1 | 1103 | Flexible Saver v1 | 1122 | 18 | 2% |