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The flaw in the energy price cap and how to fix it

Shortly the government’s energy price cap is coming into force: We explore what effect this will have on consumer bills and introduce the new phenomenon of auto switching with services like Switchd.

Why a price cap:

Unfortunately, most people in the UK are currently paying far more than they need to for their gas and electricity with the overwhelming majority not switching tariffs in 2017.

In fact, so many people are still on high priced standard variable tariffs that the government has asked Ofgem to introduce a temporary price cap to protect them! So, as of January 1st 2019, OFGEM’s energy price cap will be in effect – saving a typical household on a standard tariff £75 a year.

Issues with the price cap:

The key worry with the price cap is that it will lead to households believing that they are now on the best deal and shouldn’t switch.

Tom Rogers, founder at energy switching firm Switchd says: “Although the price cap is useful, the savings are nothing compared to the gains that could be achieved through switching. Rather than £75, switching can often save you hundreds a year!”

Whilst the price cap will help many across the UK, there are far more savings to be had by shopping around. So beware, just because a price cap is coming in, you will not necessarily be on a good energy deal.  Even more worryingly, if fewer people switch as a result of the price cap it will lead to consumers paying more, rather than less, for their energy.

How to save more:

One commonly used way reduce your energy bill is to visit a price comparison site. Entering your property and usage you can see what deals are available on the market and switch. However, finding the best deals on these sites can be tricky and they typically push you towards the 30% of tariffs that pay them a commission payment. And, of course, you must do the searching (and switching) yourself.

A wave of ‘Auto Switchers’, such as Switchd, have risen to solve these issues.

Switchd, an automated energy switching service, saves its customers an average of £408 a year by automatically keeping their customer on the absolute best energy deal. With a great customer service offering, they make being on the best deal hassle free.

What’s so good about auto-switching?

  • Auto-switching solves the issue of forgetting when to switch, or simply being too busy to deal with the hassle of finding a cheap tariff. 
  • Auto-switching checks the market daily, whilst being tailored to you – using clever maths to ensure you are on the best deal for your property according to type of energy you want (for example you may want to be switched to green energy tariffs only).
  • On average they switch you every 9 months – ensuring you remain on the best deal.
  • Auto-switching handles the switching process for you! No paperwork, no calls, no hassle.

Sounds good, how do I join?

There are a few auto-switchers out there, but here at Silversurfers, we recommend Switchd. They’ve got a five star rating on TrustPilot and switch to the whole market, not just those offering a commission.

With energy consumption rising in winter months, this is the best time to switch and for a limited time, Switchd are offering an exclusive discount for Silversurfers members. Click this link or use code “SSDISCOUNT18” on sign up to get 3 months free on any paid plan.

For more information, visit Switchd.co.uk

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