Research has found families are overpaying by an average of £350 on their electricity and gas bills each year.
Households across the UK are overpaying on their energy bills to the tune of £4 billion each year. This according to new analysis.
Research has found that 12 million families are on standard variable tariffs with the Big Six energy suppliers. Overpaying bills by an average of £350 a year. Families in the South East and East of England are overpaying by the most, according to the energy supplier Bulb.
The Government is introducing an energy price cap to protect consumers on the most expensive energy tariffs.
The Domestic Gas and Electricity (Tariff Cap) Bill will put in place a rule on Ofgem to cap standard variable. It also sets default energy tariffs until at least 2020. This all in effort to tackle the amount consumers have been overpaying the Big Six energy suppliers.
The Bill enables the temporary price cap to remain in place until 2023. However, only if conditions for effective market competition are not met.
But, millions of households are still facing higher energy bills this summer as providers raise prices.
E.ON, British Gas, SSE, Npower, EDF, ScottishPower and Bulb have all hiked energy prices, blaming wholesale energy costs for the increases.
Consumer watchdog ‘Which’ warned energy customers about the rising tariffs. Saying in May that they should switch to a better deal or face overpaying by as much as £400 a year.
The dominance of the Big Six energy firms appears to be waning. Yet, as figures released earlier this year showed more than one in five energy customers are with smaller suppliers.
A spokesman for the Department for Business, Energy and Industrial Strategy (BEIS) said:
“This government is working to build an energy market that works for all, while delivering clean, affordable energy. “The energy price cap and our £6 billion energy efficiency scheme put consumers first. In addition, will ensure protection for those most at risk of fuel poverty. “Energy suppliers need to get on board and improve their efforts to deliver value, choice and excellent customer service.”