OFGEM announced 7th February, they are extending the safeguard tariff to more energy consumers
If you are still on the SVT (Standard Variable Tariff) in other words, the most expensive tariff which all energy consumers are placed on and, stay on if they do nothing about it, your price will be capped to ensure you don’t suffer from high price increases during the period of the price cap.
This means, the average household on SVT, will now save around £115 on average.
There will be an increase on the safeguard tariff in April 2018. This increase is designed to safeguard the energy suppliers against any increases in the wholesale price of energy.
If you stay on the SVT, you will still save money on your Standard energy price – You will save around £66 on average.
If you stay on the SVT, even with OFGEM capping your energy prices, you will still be paying more than energy consumers who got off the SVT
What’s really going on? It looks as though OFGEM have got fed up trying to urge consumers to switch to a cheaper energy deal. It would appear, the way they see it is, the most vulnerable consumers are the ones least likely to switch to a cheaper deal.
There are now millions of consumers who switch their supplier each year to ensure they are getting the best energy deal. If you have not joined this group of elite energy savers, then, it’s time you did.
You can get yourself away from the SVT by switching to a cheaper online energy deal. And, by the way, most consumers save over £200