Ofgem study shows that many of us are still being ripped off

Posted by Kevin Pearce in Personal Finance on 21 December 2016 - Kevin is a Senior Credit Analyst at checkmyfile

As consumers, we expect to be treated fairly, but this seems to just be an ideology according to new Ofgem research that shows we are still being treated poorly by many energy providers.

Despite repeated calls to simplify tariffs and offer the cheapest tariffs as standard, Ofgem have found that not a lot has changed and we’re still paying more than we should. In several cases, we don’t even need to swap companies to save money, we just need to swap to the cheaper tariff. In other words, contact your existing lender, tell them you’re sick of being ripped off and then demand a better deal.

Many people are on Standard Variable Rates (SVT’s) but could save money if they swapped to the cheapest deal:

Ofgem’s stats show that:

74% of British Gas customers are on SVT’s and could save £43

42% of Co-operative Energy customers are on SVT’s and could save £245

56% of EDF customers are on SVT’s and could save £136

73% of Eon customers are on SVT’s and could save £41

9% of First Utility customers are on SVT’s and could save £157

59% of Npower customers are on SVT’s and could save £261

50% of Scottish Power customers are on SVT’s and could save £129

91% of SSE customers are on SVT’s and could save £98

In the UK as a whole, 66% of households are on standard tariffs.

The worst offender is SSE, with over 91% of its customers SVT’s, whereas as First Utility has just 9%. First Utility are a welcome change to the trend of keeping people on SVT’s.

These stats highlight to consumers where they could save money and this information will hopefully be put to good use.

British Gas and Eon have frozen their price plans over winter since feeling some political pressure from the UK Government and the Competition and Markets Authority continue their plans to help households that have been on SVT’s for more than three years.

From next year, suppliers will have to tell Ofgem which of its customers have not switched tariffs.

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