Domestic energy customers across the UK have been urged to sign up for a cheaper gas and electricity tariff, as wholesale market prices have fallen. The country is slowly lifting lockdown restrictions, meaning many more people will be back to work in the coming weeks, especially as non-essential stores start to reopen.
Energy prices are at a two-year low, and those that are able to switch to a better deal could be saving as much as £350 per year on their energy bills, according to data from Utility Saving Expert.
A number of experts across the industry believe prices have reached their lowest point and recommend consumers make the switch before unit rates start to increase in price again.
During the month of April, millions of households consumed more gas and electricity during lockdown, causing the average energy bill to rise by £32. Families should be able to take advantage of cheaper fuel costs as wholesale prices collapsed during the coronavirus pandemic.
Only six months ago, it wasn’t possible to find a tariff that was less than £800 per year, currently there are eight. This makes now one of the best times to compare energy suppliers. It’s been difficult for a number of analysts to predict the energy market during lockdown, as these are unprecedented times we are currently living through. However, many believe that there isn’t much room for manoeuvre for prices to continue to drop. It’s only a matter of time before firms start raising prices again.
Search data from tech giant Google shows that there were fewer people who were interested in switching tariffs during the lockdown. This may partially be due to the much warmer weather experienced across the country.
Energy UK is yet to release official figures for the month of April, during this time, the price cap was lowered by £17 to £1,162. Although, this amount is still £380 more expensive than the best offer on the market with Tonik Energy, at £782.
The cheapest offer from a ‘Big Six’ supplier is £825, through EDF Energy. This amounts to a potential saving of £327, still a substantial figure.
Experts believe that the energy cap could be lowered again towards the end of the year, however, it may not be able to keep pace with falling wholesale market prices. It is important to note that this is just conjecture at this stage. Only time will tell what happens in the future, especially when you start to consider the tremendous impact this is having on the UK economy. Ofgem, the industry regulator, has already detailed what support is being offered to customers during COVID-19.