Loyal energy customers £853 worse off than switchers

 Loyal customers of Britain’s biggest energy firms are on average £853 worse off than those who switched supplier over the past five years.

Ofgem figures shows they collectively handed British Gas, SSE, E.ON, npower, EDF and Scottish Power a windfall of £7.3billion by failing to switch over during the period.

This is because firms alter deals each year to entice new customers at the expense of existing ones sticking with the same deal. These tariffs usually expire after one or two years, when the energy company automatically places the customer on their “standard variable tariff ” (SVP), which is up to 30 per cent more expensive.

In 2012, the average Big Six SVT was £1,030.78 a year, £72.57 more expensive than the cheapest available deal which cost £958.21 a year. In 2016, the average Big Six SVT was £1,065.97, £168.79 more expensive than the best deal at £897.18 a year.