Put on your thinking cap
MORE THAN 10 million households face higher energy bills from Friday when the energy cap increases by a hefty £96, leaving the average customer on a standard variable tariff paying a punitive £1,138 a year.
That is an increase of 9 per cent and follows an expensive winter, where cold weather coincided with people shielding or working from home.
The big six suppliers – British Gas, EDF, EON, Npower, Scottish Power, and SSE – have already hiked tariffs in line with the uplift, charging £1 billion extra in total. Older people are typically hardest hit as millions are unwilling or unable to switch supplier to secure a cheaper deal, renewable energy supplier Pure Planet reveals.
Yet they could typically save at least £150 a year by switching, despite the energy cap. They could also cut their carbon footprint by choosing a supplier that specialises in renewable energy or carbon offsets. Pure Planet co-founder Steven Day said: “Increasing the cap will take bills above pre-pandemic levels and the over-55s will be hardest hit as they’re least likely to switch.”
He warned the energy cap could lull people into a false sense of security so they do not compare deals. “Don’t rely on the cap to save you from high prices, switch now.” Day is urging families to work together to save money and live more sustainably with the young and tech-savvy showing older family members how to switch. Andrew Wells-Gaston helped his mother, grandmother and mother-inlaw go green and saved them £1,116 a year in total – cutting their carbon footprint by 33 tons.Andrew, 36, from Chippenham, Wilts, took action after learning the women were on dear and polluting standard variable tariffs. They were not confident shopping around and were wary of switching to a smaller supplier, but all have since saved healthy sums.
Andrew, a debt recovery specialist, saved himself £240 per year when he switched from Scottish Power to Pure Planet in 2017. He was helping mother-in-law Jill Carless, 81, read her meter as it too high for her to read. He noticed her costly bills and his suggested switch saved her £276.
Andrew then found that other family members could also cut their bills. His grandmother Joan Jary, 84, saved £360 a year by switching from her standard variable tariff with EDF.
Finally, his mum Kim Wells-Gaston, 63, saved £240 per year when Andrew switched her from Npower.
He said many older people find switching daunting either because they do not know how to go about it, or would rather stick with a supplier they know: “It is surprisingly easy and a quick conversation with a loved one over a cup of tea or coffee could save them hundreds of pounds.”
Watch out for switching incentives, for example, Pure Planet offered a £25 Amazon voucher for each switch, worth £200 for the four of them.
Similarly, Energy Helpline offers £40 cashback, and TopCashBack lists incentives from MoneySupermarket Energy’s £42 to £150 at Shell Energy. Check for comparison site exclusives.