What is happening with the price cap?
Today Ofgem, the energy regulator, has announced that there will be a price cap cut of £75.
However, while the change was announced earlier today, it actually takes effect on the 1st of October.
The price cap affects an energy company’s standard variable tariff and the price is reviewed by Ofgem every six months.
At the last review in April, the price cap was raised to £1254, meaning now it will go down to an average of £1179.
How many suppliers will cut prices?
Our new research shows that 41 suppliers will have to lower prices in autumn. This includes all of the Big Six.
Given that a large number upped their prices to close to the cap maximum in April, they will now be forced to lower the cap.
All of the following suppliers are more expensive than £1179, meaning their customers can expect a drop in their energy bills.
|SUPPLIERS WHO MATCH THE CURRENT CAP||CURRENT PRICE|
|SUPPLIERS WITHIN £10 OF THE CAP||CURRENT PRICE|
|Green Star Energy||£1,253|
|Go Effortless Energy||£1,252|
|SUPPLIERS WITHIN £30 OF THE CAP||CURRENT PRICE|
|Your Energy Sussex||£1,243|
|Green Network Energy||£1,234|
|Robin Hood Energy||£1,228|
|SUPPLIERS £50-£200 CHEAPER THAN CAP||CURRENT PRICE|
|Great North Energy||£1,204|
|White Rose Energy||£1,204|
What is happening with other suppliers?
Not all suppliers price their standard tariff close to the cap, 27 suppliers price far below the current price cap.
It will be interesting to see whether these suppliers now choose to raise prices with the new price cap review.
|CHEAPER THAN THE CURRENT CAP||CURRENT PRICE|
|Solarplicity Energy Ltd||£1,141|
|Gulf Gas & Power UK||£1,133|
|The Energy Deal||£1,084|
|£200+ CHEAPER THAN THE CURRENT CAP||CURRENT PRICE|
|Economy Seven Energy||£948|
|Outfox the Market||£873|
The price cap loophole
Some suppliers do not have to comply with the price cap because they offer 100% renewable tariffs.
These are Good Energy, Green Energy and Ecotricity. It’s certainly for a good cause but they do not come cheap!
|GREEN SUPPLIER||STANDARD TARIFF|
Is this good news?
Yes and no. There’s no doubt that a £75 bill cut will come as a relief to households.
The gap between the best and worst deals for the Big Six energy companies has in fact been widening since the price cap came in.
|Supplier||Difference in 2018||Difference in 2019|
Is the price cap a good deal?
The short answer is no! While it’s good news that the price cap is coming down, it’s far from the best deal available. The cheapest deal is currently over £400 cheaper than the current price cap.
How do I pay less on my energy bills?
With autoswitching services you only need to sign up with us once and you no longer have to keep track of your energy bills – we’ll do it all for you! Every year we’ll find you a cheap deal without you having to do a thing. Sign up below.