Energy price cuts part of “phoney price war”

Citizens Advice has today revealed that Npower, E.ON and Scottish Power are charging customers on their standard tariff over £200 more than their cheapest available tariff.

Npower, who have cut their gas prices by 5.1%, has the largest difference between its standard and cheapest tariffs. E.ON, Scottish Power, and British Gas have also all recently announced energy price cuts.

Gillian Guy, Chief Executive of Citizens Advice, said:

“Energy firms are engaging in a phoney price war. Token energy price cuts to standard tariffs do not reflect the big savings that energy firms can pass on to households. Npower customers could save as much as £240 by switching to their cheapest available tariff but they are cutting prices by a fraction of this.

“Cheap deals are great for customers and any price cut for energy customers struggling to make ends meet is welcome, but it should not be only the savviest consumers who benefit from the four year low in wholesale energy costs. Many who currently do not switch are those whose finances are the most stretched, including older people and low-income families. Customers on energy prepayment meters can pay a yearly average of £80 or more for a second-class service.  Energy suppliers must pass on savings to all their customers, not just those able to switch to get the best deals.”

The differences between the cheapest and standard variable dual fuel tariffs for each of the Big Six energy firms from 20 Jan:

Table showing the differences between the cheapest and standard variable dual fuel tariffs for each of the Big Six energy firms from 20 Jan 2015
Energy supplier Cheapest tariff (£ ) Standard tariff (£) % difference £ difference
Energy supplier

Npower

Cheapest tariff (£ )

962.66

Standard tariff (£)

1204.91

% difference

25.27

£ difference

242.25

Energy supplier

E.ON

Cheapest tariff (£ )

922.99

Standard tariff (£)

1145.12

% difference

24.15

£ difference

222.13

Energy supplier

Scottish Power

Cheapest tariff (£ )

970

Standard tariff (£)

1199.12

% difference

23.67

£ difference

229.12

Energy supplier

EDF Energy

Cheapest tariff (£ )

998.73

Standard tariff (£)

1163.89

% difference

16.57

£ difference

165.16

Energy supplier

SSE

Cheapest tariff (£ )

1174.24

Standard tariff (£)

1186.27

% difference

1.03

£ difference

12.03

Energy supplier

British Gas

Cheapest tariff (£ )

1183.2

Standard tariff (£)

1192.97

% difference

0.86

£ difference

9.77

Citizens Advice is urging customers to call up their supplier and make sure they are on the cheapest deal available.

Notes to editors:

  1. These figures are Citizens Advice analysis of large supplier’s dual fuel tariff prices for medium users paying by direct debit on 20 January 2015, with source data provided by price-comparison site Energy Linx. The figure for Npower’s standard tariff does not reflect its subsequent announced price cut of 5.1 per cent.

  2. To contact the Citizens Advice news team call the press office on 03000 231 080, or via email at press.office@citizensadvice.org.uk .

  3. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website .

  4. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.

  5. To find your local bureau in England and Wales, visit citizensadvice.org.uk . You can also get advice online at adviceguide.org.uk

  6. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers

  7. Citizens Advice Bureaux in England and Wales advised 2.3 million clients on 5.4 million problems from October 2013 to September 2014. For full 2013/2014  service statistics see our quarterly publication Advice trends

  8. Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 3,000 service outlets across England and Wales.