Millions of British households are being urged to take immediate action on their energy bills, as new figures reveal a staggering 35 million people remain on their supplier's most expensive tariff.
The Cost of Loyalty: The Standard Variable Rate Trap
Energy customers with major suppliers like British Gas, EDF, E.ON, Ovo, and Octopus are being warned they are likely paying over the odds. The culprit is the Standard Variable Rate (SVR), which is the default and most expensive tariff most energy companies are permitted to charge.
Alastair Douglas, CEO of TotallyMoney, issued a stark reminder: "Two thirds of households are still on the standard variable rate - the maximum their supplier is allowed to charge." He emphasises that loyalty to a single provider rarely pays off, stating, "Loyalty doesn’t pay, but changing energy suppliers can."
How to Save Hundreds on Your Annual Bill
The potential savings for households are substantial. According to data from Decision Tech, the average household could save up to £679 a year simply by switching to a better deal. This significant sum could be reclaimed without any need to reduce energy usage or turn down the thermostat.
The process of switching is designed to be quick and hassle-free. Under Ofgem rules, the entire switch should take no more than five working days. To protect consumers, if a new supplier fails to meet this deadline, customers are automatically entitled to £40 in compensation, which must be paid within 10 days.
Douglas sought to reassure concerned customers about the process: "All your pipes and plugs will stay the same. Your energy supply won’t be affected during the changeover, and you won’t lose power." His advice is clear: "Check your account to find out if you’re free to switch, and if you’ve not changed providers in the last year, then it’s likely that you can start saving money."
Act Now Before Winter and Potential Price Changes
The warning comes at a critical time. Average annual energy bills rose by an average of 2% on 1 October for those on standard price-capped tariffs. While the energy Price Cap is predicted to remain roughly the same until the end of March, the future beyond that is uncertain.
This uncertainty makes proactive comparison more important than ever. Experts are urging consumers not to delay. Douglas advises, "If you’re one of the millions still on a variable rate, don’t wait until temperatures drop. Check your tariff, compare deals, and make the switch while demand is lower." Taking a few minutes to review your current plan could put hundreds of pounds back in your pocket.
