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Vulnerable people to save up to £230 a year on their energy bills, according to Citizens Advice

2 February 2018

Vulnerable people will save the equivalent of up to two months of their annual energy bill from today, as Ofgem’s safeguard tariff comes into effect for a million more people.

The tariff will cap the energy bills of customers who are eligible for the Warm Home Discount - which includes some of the poorest families and pensioners.

Analysis by Citizens Advice found that customers currently on a standard variable tariff paying £1,260 a year will see their bill reduced to just over £1,030 - the equivalent of saving more than two months worth of energy bills.

Citizens Advice is calling on the government to follow the regulator’s lead, by implementing a cap on energy prices for all consumers sooner rather than later. The charity says that by doing so, the government could provide a solution to sky high energy costs faced by customers stuck on standard variable tariffs in time for next winter.

Gillian Guy, Chief Executive of Citizens Advice said:

“From today, some of the most vulnerable energy customers will save hundreds of pounds on their bills. This is a welcome step towards making the energy market work better for consumers.

“Citizens Advice has long called for more protection for the poorest pensioners and families paying over the odds for their energy.

“The priority for the government must now be to introduce a price cap for the whole of the energy market sooner rather than later. We want to see energy bills capped for the 12 million people stuck on poor value default tariffs before next winter.”

Notes to editors

  1. The £230 figure was calculated by comparing the most expensive standard variable tariff for a supplier offering the Warm Home Discount, for dual fuel customers, using Ofgem’s average consumption figures, with the safeguard tariff, averaged across all regions.
  2. Citizens Advice has a statutory role as the consumer advocate for energy consumers, to represent consumers across the energy industry.
  3. The Citizens Advice service comprises a network of local Citizens Advice, 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 get advice online or find your local Citizens Advice in England and Wales, visit citizensadvice.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. Local Citizens Advice in England and Wales advised 2.5 million clients on 6.2 million problems in 2014/15. For full service statistics see our publication Advice trends.
  8. Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 2,500 service outlets across England and Wales.