Be wise to dual-fuel tariff prices

Energy customers could still be hit in the pocket despite new moves designed to curb unfair price rises – and the advice is to shop around.

Around a third of dualfuel energy tariffs will leave customers paying more than the government’s price cap when it takes effect at the end of the year.

While ministers have promised that the cap will protect 11 million UK households on poor-value default tariffs, the measure does not apply to fixed tariffs, which are usually thought to be more competitive.

But a new study by consumer watchdog Which? found three in 10 current dual-fuel deals that would be higher than the government’s cap of £1,136 for a home with typical energy consumption.

The worst was a First Utility deal that cost £196 more than the cap, based on typical electricity and gas use.

In anticipation of the price cap, big energy suppliers have been moving customers off the default tariffs, which more than half of all households are on.

Which? found all the six big power firms were among those which offered fixed deals that were above the cap.

The latest data is a reminder that the biggest savings still come from shopping around and ditching your supplier for a cheaper one.

Alex Neill, managing director of home products and services at Which?, said: “While this cap may cut energy bills for some, people shouldn’t be lulled into a false sense of security that they are getting the best deal.

“The cap won’t cut everyone’s bills and you can save by switching.”