Ofgem, the UK’s energy industry regulator, previously announced that there will be a rise in the price cap from 1st April 2021 for some of the most common energy tariffs.
Will this affect you?
The price cap only affects a certain type of tariff known as a ‘default’ or ‘standard variable. This is one of the most expensive types of tariffs on the market. Therefore back in 2019, a price cap was introduced to help stop customers overpaying for energy and to set an amount that suppliers could charge. The recent increase that started this April, will see households on average paying just under £100 more a year in energy.
Late last year saw the price cap plummet to its lowest since the start of 2019. This was due to energy demand dropping in the first national UK lockdown. Since then, the demand for energy has increased and has caused a spike in price. What does this mean? Well, the price cap will increase by £96 for 11 million default tariff customers and £87 for 4 million pre-payment meter customers for the next 6 months.
What action should you take?
Here at Green Energy Switch, we offer a free online service to compare the best green energy tariffs. All of our tariffs are ethical and have been carefully selected for competitive pricing and highly rated customer service. It’s a simple and easy process, all you need to do is go to our online comparison tool, fill out a few simple details and we will compare the best tariffs for you. We offer both a range of fixed and variable tariffs.