The energy market is broken. Most people pay more than they should for their energy – in some cases, up to £300 or more per year. In an era of stagnant wage growth, high inflation and rising energy prices, this has become a major issue. And it’s getting worse. The Big Six energy providers have all significantly increased the price of their standard variable tariffs (SVTs) over the last year, hitting the pockets of millions in the process. Political parties of every colour have been under pressure to do something about it. And so, after a degree of toing and froing, the Government will mandate Ofgem to impose a price cap on the cost of the controversial SVTs, in theory saving households on these un-competitively priced tariffs up to £100 per year. So, is the price cap a silver bullet solution? To be frank, not in the slightest.
Independent 11th Nov 2017 read more »
Disappointed by the interest paid on your savings account? Why not lend money to your energy supplier instead? Ovo Energy, one of the smaller power companies, pays customers up to 5% on any overpayment of up to £1,000. Its rival Iresa, which entered the market last year, will pay 4.5% — although the upper limit for overpayments depends on the size of the customer’s direct debit. Tonik Energy pays 3%, again on up to £1,000. Only one of the big six energy companies pays interest: Scottish Power offers a maximum of 2.4%.
Times 12th Nov 2017 read more »
