Energy price cap lowered
Ofgem is lowering the cap on standard and default energy tariffs from £1,254/yr for a typical user to £1,179/yr. For an average household, this means a likely price cut to bills of £75/yr from Tuesday 1 October. However, this cap isn't the maximum you can be charged. The price cap sets a limit on the rates you pay for each unit of gas and electricity, so if you use more, you'll pay more.
Importantly, although the cap can reduce the cost for many of those who are on standard or default tariffs, most could still save more than £300 a year by switching to the cheapest deals on the market. The best way to save on your energy is to switch supplier, even with prices coming down.
Compare & Switch
What info will I need?
It's useful to have to hand the following information:
- Your postcode.
- The name of your current supplier.
- The name of your current tariff.
Use a price comparison website
Use a comparison website or phone different energy suppliers to see if you can save by switching. If you are happy with your current supplier, but find a better offer elsewhere, you can ask to see if they will match it.
Use an Ofgem accredited price comparison website such as uSwitch or Money Supermarket. Ofgem have approved a number of online price comparison sites that are a good place to look when comparing energy tariffs and supplier deals. These websites comply with a code of practice: The Confidence Code.
Comparison sites bearing the Confidence Code logo:
- help you find the best deal for you in your local area
- provide a free and easy-to-use switching service
- give detailed information on each tariff, including gas and electricity unit prices
- detail any discounts available
Weigh up your options
You may want to consider a number of factors when comparing suppliers and tariffs – from cheaper prices and customer satisfaction scores, to green energy tariffs or fixed deals with no exit fee.
Confirm your switch
Once you've picked your new supplier and energy tariff, the last step is to confirm your contract and how you plan to pay. Paying by Direct Debit can usually save you more money.
The switching process will then start, and your new supplier will be in touch to confirm your switch-over date.
The switch-over process can take up to 21 days. In most cases, it’s around 17 days. If you change your mind, you have 14 days to cancel from the date you agree a contract. You must contact the supplier to cancel any contract.