December 21, 2017
Energy suppliers have been in the spotlight this week after a cross-party panel of MPs criticised them for failing to offer cheaper energy deals more than once every two to three months. This comes after energy regulator, Ofgem, released a new league table ranking the ten largest energy suppliers on how many of their customers are on Standard Variable Tariffs (SVTs).
"Big Six" supplier, SSE, is at the bottom of Ofgem's new league table. Together with British Gas, which comes second from bottom, the two energy suppliers account for over half of all households on these poor value deals.
Ofgem's table also shows that SVTs are around £300 more expensive than the cheapest deals on the market. The high number of customers on standard tariffs is the main driver behind Government's controversial plans to cap energy bills across the market.
Of the ten largest suppliers shown, the three suppliers with the smallest proportion of customers on standard variable tariffs are all independent suppliers - First Utility (which comes top), followed by Ovo Energy and Co-Operative Energy respectively.
First Utility contact customers on SVTs up to 13 times in one year to suggest cheaper, fixed-term energy tariffs.
The decline in the overall number of customers on these tariffs is accelerating thanks to record switching rates in 2017. The total number of switches have climbed 17% from last year to over 5.1m in 2017.
Dermot Nolan, chief executive of Ofgem, said:
"Ofgem's league table shows which suppliers have the most work to do to get all their customers a better deal.
"Some of the larger suppliers have a significantly lower proportion of customers on poor value standard variable deals than SSE, British Gas and E.ON in particular. This shows it is possible to help more of these customers get a better deal and it is unacceptable that so many are still paying too much for their energy."
Are you on a standard tariff? If you are then you are likely to be paying far too much for your energy.
Energylinx offers an instant online comparison and switching service. You can do a quote on our website or by calling 01259 220000.
Posted on December 21, 2017 at 02:25 PM