Cheaper energy deals are vanishing from the market ahead of new fuel cap being introduced next year
- Analysis found that cheap energy deals are vanishing ahead of a fuel price cap
- A cap expected to save £75 a year per household comes into force on January 1
- Which? fears energy suppliers may reduce the number of cheaper deals
Cheaper energy deals are vanishing from the market ahead of a new fuel price cap, analysis from Which? has found.
There were just eight tariffs costing less than £1,000 a year for medium energy users on December 14 – compared with 77 available in January.
The cap – set at £1,137 per year for a medium domestic dual-fuel customer paying by direct debit – comes into force on January 1 and will save households around £75 a year on average, according to regulator Ofgem.
But Which? fears that energy suppliers may reduce the number of cheaper deals to make up for money they might lose on their more expensive default tariffs.
Which? fears that energy suppliers may reduce the number of cheaper deals to make up for money they might lose on their more expensive default tariffs (stock image)
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It could mean consumers are deprived of good-value deals and may be less inclined to shop around (stock image)
It could mean consumers are deprived of good-value deals and may be less inclined to shop around. Which? managing director Alex Neill, said: ‘It is a real cause for concern that some of the best-value deals seem to have disappeared.
‘The cap can only be a temporary fix – what is now needed is real reform to promote competition, innovation and improved customer service.
‘If you are unhappy with your energy provider, you should look to switch now to save significant amounts of money.’
An Ofgem spokesman said: ‘The energy price cap will stop customers on default tariffs, including vulnerable consumers, from being overcharged as much as £1billion.
‘We are also working on a range of changes to the market that will help improve competition.’
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