The Competitions and Market Authority (CMA) last week released their summary findings into whether the structure of the UK energy market is stifling competition and leading to adverse outcomes for consumers – namely in respect of higher prices than would be the case in a competitive market.
The report confirmed that 70% of UK customers of the big six energy firms, are on ‘default’ standard tariffs, and as a result are paying more than they should (£2.5 billion pounds in 2015).
You could be on a standard tariff without realising it, in which case you should consider switching tariff or provider to start saving.
What are Standard Tariffs?
A standard or ‘evergreen’ tariff is your supplier’s default tariff. One supposed benefit of the standard tariff is that customers are not charged an exit fee in the event they wish to move to a different tariff or supplier. The major downside is that they are typically the most expensive tariffs on the market.
How did I end up on a Standard Tariff?
Many people don’t realise that they are on a standard tariff (and therefore paying way too much for energy). This is because customers are typically moved, automatically, onto a standard tariff once the term of a cheaper, fixed rate tariff ends. So in practice, it means that if you don’t switch tariff or supplier once your fixed rate ends, you will automatically start to pay more money.
Unfortunately and as the CMA report demonstrates, the majority of consumers very rarely, if ever, switch tariff or provider.
How do I get a better deal on my energy bills?
If you haven’t switched in a while, it’s likely you are paying hundreds of pounds a year more than you need to be. Onedox provides an innovative, free service to help consumers monitor energy and other household bills, and ensure they never overpay for them again. It automatically notifies you whenever you should switch to a better energy deal and provides a simple means of switching within minutes.