Some families are losing out on £220 a year by not switching energy supplier, research reveals
FAMILIES are paying £220 a year more for their energy than they should by not switching to a new supplier.
A key problem is that the Big Six power firms are abusing the loyalty of customers by setting their bills at or within £2 of the energy price cap.
The energy price cap was introduced at the start of the year to curb rip-off tariffs and make the market fairer for consumers.
But the Big Six energy companies are bunching their prices around the cap every time it gets updated, treating it as a target rather than a limit.
Compared to cheaper tariffs in the market, this leaves consumers out of pocket, research for rival supplier Bulb found.
In January when the price cap was launched, the Big Six collectively grouped their standard variable tariffs around the limit.
They did the same thing when the cap was updated in April and again in the summer ahead of the new limit coming into effect on October 1.
Four of them - SSE, EDF, nPower and E-ON - are charging £1179 for a home that uses the average amount of gas and electricity - exactly the amount of the cap. British Gas is £1177 and Scottish Power is £1178.
Hayden Wood, boss of Big Six rival firm Bulb said: “We’ve always supported the price cap - it’s helped families who have been overcharged on their energy for years.
“But it’s clear the Big Six treat the cap as a target and not a limit, consistently setting their standard tariffs at the maximum level allowed.
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