In our recent February auction suppliers could not bid with the tariffs below, or indeed even get close to the Ofgem price cap. Our first priority remains to save residents money on their energy bills, with the second to help people make more sustainable choices, therefore we have a moral obligation to not advise switching if it does not make economical sense. Unfortunately, and for reasons beyond our control, these are the circumstances we currently find ourselves in.
What has happened?
The last few months, and indeed the last year, have been very unusual for the energy market, with persistently high and fluctuating wholesale prices.
Open market fixed tariffs remain above both Ofgem’s current Price Cap and the new higher Cap introduced from 1 April. The Price Cap limits what suppliers can charge on a variable tariff. As the market stands, there are no savings to be made by switching from a Standard Variable Tariff (SVT) to a fixed tariff.
We will continue to help you make an informed decision in a safe environment. For further information, you can visit the Big Community Switch information page or see the FAQ page. Should you have any further questions. For information why prices are so high, to our Energy Saving Tips Page for some advice on ways to reduce energy use at home
We are encouraging you to 'roll forward' your registration to the next 'MAY' scheme.
Our advice to residents for their specific circumstances is:
- if they are on a Standard Variable Tariff, don’t switch:
We suggest they might want to stay on their Standard Variable Tariff. Their current energy supplier may offer them a fixed tariff which they may want to consider accepting if it is cheaper than remaining on the Standard Variable Tariff. This is unlikely right now.
- if they are on a fixed tariff, don’t switch:
Assuming they fixed their tariff before the recent rises in the market, this is likely to represent a good deal compared to what is in the market now, so they will want to stay on their fixed tariff until the end of their contract.