How power swap deals now cost more than if you just went to your carrier’s standard rate
Households are being charged hundreds of pounds more for switching energy deals than if they did nothing and continued to use their provider’s standard rate.
A handful of suppliers are currently advertising fixed gas and electricity deals for around £2,000 a year, based on a family’s standard usage, after wholesale prices rose.
The rise has prompted suppliers to raise household prices by as much as £470 a day, with the most expensive heading towards £2,000.
Price hikes: A handful of suppliers are currently advertising fixed gas and electricity deals for around £2,000 a year
And while millions of households worry about rising bills, experts have called the mind-boggling rates “highly questionable.”
Dozens of businesses could still go under after an additional 800,000 families lost their supplier last week when Green and Avro went out of business.
Under the rules of regulator Ofgem, suppliers must offer at least one deal that does not violate the price cap, which will rise Friday from £1,138 to £1,277.
These standard variable rates are what customers are moved to when their business goes out of business or a fixed deal ends.
But while these were the most expensive rates for a long time, they are now among the cheapest.
Outfox The Market offers the most expensive one-year fix on the market at £1,957 for the average household, according to The Energy Shop.
The Fix’d 21 23.0 launched last week, replacing a cheaper one-year deal that cost £1,640.
Meanwhile, Ovo raised the price of its 12-month rate by a third – the Better Smart 17 September 2021 now stands at £1,864.
However, Bristol Energy’s rate has the biggest price difference. The BE Simply Green 22 September, issue 23, now costs the average family £1,927 — £1,005 more than Bristol’s 12-month deal this time last year.
Scott Byrom, of The Energy Shop, says: ‘Watching energy tariffs launch with an average annual bill of nearly £2,000, when a year ago the cheapest deals were around £842, is at best a terrifying reality check on how disconnected the price ceiling is, compared to where energy prices could or should be.
And worst-case scenario, why are energy suppliers even choosing to launch them in the first place, with up to £680 more than the cheapest deals.”
Bristol Energy said: ‘The cost of a flat rate is six times higher for us this year than last year, but the margin we are making is exactly the same as last year.’