On 5 February 2021, it came as a complete shocker that Ofgem announced the level of the Energy Price Cap for six months commencing 1 April 2021.

Here’s a quick summary

  1. The price cap was increased by £96 (9.2 per cent) from 1 April 2021, with standard tariffs quickly following suit.
  2. A rise in wholesale energy prices accounted for £66 (69 per cent) of the increase.
  3. Savings from switching energy provider will resume back towards £250 after energy suppliers update their prices.
  4. Higher bad debt costs related to lockdowns accounted for a further £23 (24 per cent). There have now been six energy cap price levels – two up, four down. The net alternation from pre-cap groups has reduced the average energy bills of £41 (3.5 per cent). Check out the table below to see the complete history.

Source; energyscanner.com,

Ofgem

Numbers have been recalculated based on the most recent average domestic consumption values to make them comparable. These will vary from Ofgem’s documented historical figure as Ofgem are yet to amend its data.

So, how much can I save if I switch energy supplier?

From February 2021, savings from energy switching for a household with average energy usage are generally £180 for customers paying by Monthly Direct Debit. However, if you pay quarterly by cheque or debit card, the savings amount to £259 per year. This will jump back towards £250 / £330 once energy suppliers adjust their prices to the new price cap. This savings sum is based on the cost of Standard Variable tariffs of the Big 5 in comparison to a bundle of the cheapest energy deals in the market. To get a precise comparison, please use our energy price comparison service.

Be Sure to Compare

Your savings will depend upon your circumstances that are affected by two particular factors, location and usage. So, use our energy comparison site to find YOUR winner. As we focus on putting consumers first, our service is designed to make switching energy suppliers fast and simple and save each customer money on their energy bills.

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