Most British Energy Companies are Punishing “Savvy Switchers”

After a Government levies rollback, only two big energy companies are passing on the savings to consumers who have committed themselves to fixed-price plans.

Some energy companies in the United Kingdom have received savings from a Government shake-up of levies but have failed to pass on those savings to all their customers. Scottish and Southern Energy and British Gas are the only two of the top six providers that have announced that they will pass on the £50 per customer in savings to all of their customers, according to price comparison website

Scottish Power, in a recent statement, said it was passing on the savings but said it may only apply it to variable rate standard customers. “Savvy switchers,” who are already benefiting from a good value fixed-price energy deal will be mostly penalized by the policy. E.On and EDF Energy, likewise, are taking the cuts to green levies by the government, which will result in smaller-than-expected price rises. However, existing customers on fixed price contracts will not realize any further savings, both companies stated, they already benefit from a discounted rate. Npower simply stated it would not raise prices again until 2015.

The costs of some energy-efficiency and social schemes would save households around £50 on average, said Ed Davey, Energy and Climate Change Secretary. Editor-in-chief at Moneysupermarket, Clare Francis said, “The reduction of green levy commitments for UK energy providers showed all the signs of being a good thing for struggling households who expected to see it reflected in their energy bills. However, indications are that not everyone will win in the war on the cost of energy and some will essentially lose out because they were savvy and switched to pay less in the first place.”

Francis advised consumers on the plans, “Our advice to customers on fixed rate deals is to stay put as their existing tariff is still likely to be cheaper than the products currently available on the market. However, if you are on a fixed rate deal without any exit penalties, it is worth comparing prices once all of the changes take effect, as there may be further savings to be made.”


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