Price cap for vulnerable and prepay energy customers just £70/yr less than worst big six tariffs, says MSE

Ofgem has announced that it is raising the price of its safeguard tariff for prepayment and vulnerable customers for the second time this year to £1,136/yr.

Guy Anker, deputy editor of MoneySavingExpert.com said: "After this hike, the price cap for prepayment and vulnerable customers will be just £70/yr less than for someone paying by direct debit on the average big six variable tariff. Which begs the question – is it really much protection at all?

"For anyone with a prepayment meter, the best thing you can do is check to see if there’s a cheaper deal out there for you – right now you could cut your bills by up to £150/yr doing this. Better still, much bigger savings of some £235/yr are possible if you switch to a normal billed meter – the big six (and some smaller suppliers) allow you to do that for free, though most need you to pass a credit check. Likewise, if the cap applies to you because you receive the Warm Home Discount, chances are you aren’t on the best deal either, so check if you can save and vote with your feet."

For more information, please visit the MSE news story.