Energy Price Cap: Is it worth switching providers to curb bill increases?

ITV News Consumer Editor Chris Choi has the latest following the announcement that the Energy Price Cap will rise from January

To switch or not to switch? ITV News Consumer Editor Chris Choi analyses the new changes to the Energy Price Cap announced on Thursday.

For years we were a nation of switchers, but then came the energy crisis.

Two years ago wholesale prices rocketed so much that more than 20 power firms collapsed and competitive deals dried-up. There was no point shopping around.

For many months consumer experts have said the best advice is to “stay put," especially when the Government’s Energy Support Scheme made the energy market even less competition-based. 

Ofgem has announced the cap will increase by 5% from January 1st. For an average household this equates to £1,928

Today came an official gear change as the UK’s powerful energy watchdog Ofgem said: “We are also seeing the return of choice to the market, which is a positive sign and customers could benefit from shopping around."

It’s true that an increasing range of tariffs are now available including some that track below the price cap.

But beware - many thousands discovered the risks of choosing an energy supplier on cost alone, when they found service was bad or their company went bust. 

A handful of tariffs track up and down, but below the price cap.

Look very carefully at the details - some have restrictions limiting the offer to existing customers, those willing to take both fuels or will come with exit fees. 

Fixed rate deals bring certainty, but if the price cap came down or better tariffs appear you could face fees to leave the contract, and £100 a throw is not unusual.

Frustrating for wanna-be switchers, some of these deals too are for existing customers of a supplier only. 

Today we spoke to ITV’s most famous money man, Martin Lewis. You’ll find his advice clip below:

”Most fixes currently aren't that cheap, though if you strongly value price certainty, it could still be worth considering a fix that's just under the current cap," he explained.

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