GoCompare comments on Ofgem’s decision to increase the cap on the safeguard tariff for the second time this year: Energy Saving

08 August 2018, 08:52

GoCompare comments on Ofgem’s decision to increase the cap on the safeguard tariff for the second time this year

 

Ofgem has increased the maximum amount energy companies can charge customers on the safeguard tariff by an average of £47.00 a year. Average annual bills for vulnerable and prepay customers could increase from £1089.00 to £1136.00 for dual fuel customers from the 1st October 2018.

Georgie Frost consumer advocate at GoCompare Energy said; “£47 is significant, especially when you consider that it will impact households already considered vulnerable.

“Due to wholesale energy prices exploding since the beginning of the year, this marks the second time the regulator has needed to increase the cap this year, meaning that from October, as we enter peak energy-usage season, affected households will face paying £115 more for their energy than they were at the beginning of the year.

“As it stands, if providers raise their prices in line with the cap, impacted customers could see their average energy bill rise to around £1,136, just a few pounds less than the average standard variable price offered by ‘Big Six’ energy suppliers. In comparison, the cheapest prepay energy tariff is £159 cheaper.

“However, the fact remains that prepay meters are still one of the most expensive ways to pay for energy, for instance the cheapest overall fixed energy deal is a staggering £315.10 cheaper than the safeguard tariff. This should really highlight the importance of getting the switching message through and ensuring that the most vulnerable households are armed with the information and ability to switch suppliers and save themselves hundreds of pounds a year.”

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For further information please contact:

Anders Nilsson/Martyn John/Louisa Marsden at GoCompare on 01633 654 054 / 01633 654 725 / 655132

Gordon, Jason or Liz at MAW Communications on 01603 505 845

Keep up-to-date with GoCompare on Twitter: @GoCompare

Notes to editors:

About GoCompare

GoCompare is a comparison website that enables people to compare the costs and features of a wide variety of insurance policies, financial products and energy tariffs.

GoCompare does not charge people to use its services, and it does not accept advertising or sponsored listings, so all product comparisons are unbiased. GoCompare makes its money through fees paid by the providers of products that appear on its various comparison services when a customer buys through the site.

GoCompare does not sell its customers’ data.

When it launched in 2006, it was the first comparison site to focus on displaying policy details rather than just listing prices, with the aim of helping people to make better-informed decisions when buying their insurance. GoCompare has remained dedicated to helping people choose the most appropriate products rather than just the cheapest, and has teamed up with Defaqto, the independent financial researcher, to integrate additional policy information into a number of its insurance comparison services. This allows people to compare up to an extra 30 features of cover.

GoCompare is the only comparison website to be invited to join the British Insurance Brokers’ Association (BIBA) and is authorised and regulated by the Financial Conduct Authority (FCA).

For more information visit www.gocompare.com and www.gocomparegroup.com

Contact information

Jason Wyer-Smith

jason@mawcomms.co.uk