Capped tariff

Households on standard energy tariffs face a £21 hike in their bill next year to help suppliers cover coronavirus costs. But with analysts already forecasting a steep rise in the energy price cap after lockdown ends, that means in total prices could rocket by an estimated £84 a year. 

The competition watchdog has called for the prepayment price cap to stay in place after 2020 due to the slow roll-out of smart meters – but customers could pay more under the cap when calculation methods change. 

Around a million households who receive the Warm Home Discount should save an average £120/year on their energy bills when the regulator extends its prepay price cap to some credit meter customers within the next few months.

More than a third of UK customers have been overpaying for their gas and electricity on a standard variable tariff (SVT) for at least three years, it has emerged.

The Conservative general election manifesto is likely to include a pledge to cap prices for households overpaying on their energy bills, a senior minister has signalled.

The Prime Minister has indicated the Government is set to crack down on sky-high energy prices, and warned that relying on customers to switch energy suppliers to save money "is clearly not working".

The Government should look at new ways of cutting expensive energy bills for those unwilling to switch – including a relative price cap – MPs said today.

Millions of households are "paying too much" for energy, a year-long investigation has revealed today. But MoneySavingExpert.com has been saying for years that households could save hundreds by switching.