Are you paying too much for your gas and electricity? If you’re on a variable energy tariff, chances are you’re paying an average of £235 a year more than you should be. This is why First Utility, the UK’s largest and fastest growing independent energy company, is calling for variable energy tariffs to be scrapped.
Up to 70% of customers with the Big Six energy companies (British Gas, npower, E.ON, EDF, Scottish Power and SSE) are overpaying by an average of £235 a year when compared to the cheapest fixed price energy tariffs on the market. This means the UK is currently paying £3.4 billion too much for its energy.
Research commissioned by First Utility shows that:
- 80% of UK energy bill payers would find it useful for more information about cheaper tariffs from their existing supplier and those from others in the market.
- 80% said more transparent bills and more information about the best gas and electricity tariffs available would increase their level of trust in energy companies.
First Utility’s Scrap the Variable campaign
First Utility wants to shake up the UK energy industry so it works for the better. This entails:
- Scrapping the standard variable energy tariff and replacing with an ‘out of contract’ tariff that better reflects near-term wholesale costs.
- Providing information to customers about cheapest gas and electricity tariffs on the entire market on a monthly basis.
First Utility CEO Ian McCaig said: “First Utility believes that the industry needs to change from within and do more to inform and support customers to help them make informed choices about the best tariff.
A big step would be to scrap the standard variable tariff and call it what it is – the ‘Out of Contract Tariff’ i.e. the tariff you’re left on when you’re not on one of the good ones!”
Find out more about the First Utility Scrap the Variable campaign.
Switching energy companies or tariffs
If you’re on a variable energy tariff and want to switch and save, you’ll be pleased to hear it’s easier than you might think! Take a look inside our comprehensive guide to how to switch energy supplier and discover the government’s new Power to Switch campaign for more on the benefits of switching.
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