Published On: Wed, Aug 7th, 2019

Britons ‘can’t trust energy suppliers’ despite new Ofgem bills price cap – switch NOW

Energy bills can take a big chunk of cash out of the family kitty every month.

However, comparison sites claim to be able to save money for the average Briton.

One such site in Look After My Bills, which caused a sensation on Dragons Den in August last year. It has been announced the venture has now been bought by

However, Ofgem has now revealed lower price caps for energy companies, meaning bills will be cheaper.

Is it really worth switching providers frequently, given these new rules?

The energy regulator has lowered the maximum limit for energy bills allowed to be charge by suppliers to £1,179 from £1,254.

Look After My Bills claims 41 suppliers will now have to lower the prices of their standard variable tariffs (SVR).

The change will come into affect on October 1, and will also benefit those on pre-payment metres. This cap has dropped by £25.

Dermot Nolan, chief executive of Ofgem, said: “Customers can be confident that whatever happens, the price they pay for their energy reflects the costs of supplying it.”

However, many more people could save money by switching away from their providers SVR.

Services such as Look After My Bills and WeFlip help customers do this automatically.

Using this kind of system it is possible that some Britons could save up to £333 a year, much more than they will save relying on Ofgem price caps.

Currently the cheapest deal on the market is £846 from Outfox the Market, £333 less than the new SVR cap.

Look After My Bills also said the cap is failing and loyal customers are worse off than before.

Lily Green, from Look After My Bills told The Sun: “The price drop should have come a lot sooner. The cap was set too high for too long.

“Our own research found that the price cap had in fact made the loyalty penalty worse.

“The sad truth is you can’t trust suppliers to lower your energy bill.”

Back in July Martin Lewis’ enegry advice urged readers to switch, claiming the new cap “risks giving people a false sense of security that they’re getting a good price – when nothing could be further from the truth.” 

Martin Lewis added: “While the price cap is set to be a ‘fair’ price that doesn’t make it a good one.

“If you haven’t switched in over a year, you’re likely on your supplier’s standard ‘price-capped’ tariff and that roughly means that you are overpaying by around £300/year – as the cheapest deals on the same usage are around £900/year.

“So the price cap is about as effective protection as a mosquito net would be from a crocodile. Of course for those who never switch, it is a help.”

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