Around a third of dual fuel energy tariffs will leave customers paying more than the government’s price cap when it takes effect at the end of the year.
While ministers have promised that the cap will protect 11m households on poor-value default tariffs, the measure does not apply to fixed tariffs which are usually thought to be more competitive.
But an analysis has unearthed 70 fixed tariffs that would be higher than the government’s cap of £1,136 for a home with typical energy consumption. The worst was a First Utility deal that cost £196 more than the cap, based on typical electricity and gas use, the consumer organisation Which? found.
The organisation looked at all 268 energy deals available on 27 September, and counted 98 fixed tariffs that were cheaper than the proposed cap. They included one that was £258 below the ceiling.
In anticipation of the price cap, big energy suppliers have been moving customers off the default tariffs, which more than half of all households are on.
Earlier research for the Guardian suggested that many fixed-price deals are not particularly competitive. Which? found all the big six firms offered fixes that were above the cap.
When the cap comes into force, around 11m households on default tariffs are expected to save £75 on average, or around £1bn collectively. But the Which? analysis is a reminder that the biggest savings still come from shopping around and ditching your supplier for a cheaper one.
Alex Neill, managing director of home products and services at Which?, said: “While this cap may cut energy bills for some, people shouldn’t be lulled into a false sense of security that they are getting the best deal. The cap won’t cut everyone’s bills and you can save more by switching.”
