The energy price list intended to support the most vulnerable households on low-value fixed tariffs will enter into force on 1 January 2019, today confirmed by the agency.
The energy regulator says 11 million people will benefit from an initiative that will limit how large suppliers can charge households at standard variable rates – often the most expensive on the market – for a year.
Announcing the date when it will fire, the Officer said it would be limited to 1,137 pounds a year for a typical double fuel buyer who pays a direct debit.
This level is updated each year in April and October to reflect the latest wholesale energy costs that it recognizes has increased significantly over the past year. Officer says the current rate, the cap increase could be announced in February – a month after he left living.
"Unfortunately, every joy that long-lasting households feel today is likely to be short-lived," explained Stephen Murray, energy expert at MoneySuperMarket.
"The cap will be reviewed again in February, when market forces are likely to say it will increase considerably.
"That means we can watch three months of winnings, then 12-18 months of long-lasting pain for people who are doing nothing and a regulator controls their accounts."
When the price force enters into force, suppliers will have to reduce the price of their default tariffs, ie standard variable rates, to the level or under the cap, forcing them to remove the excess costs.
It is estimated that this will save customers who typically use a typical amount of gas and electricity around 76 pounds a year, and the buyer at the most expensive prices saves an average of 120 pounds.
Savings for individual customers will depend on how much energy they use, the price of their current tariff, regardless of whether they have gas and electricity and how they are paying for their energy.
In total, the price will save UK consumers about a billion pounds, according to the Ofgem.
Hooded households will be able to save even more money by shopping for better jobs.
Dermot Nolan, the CEO of OFGEM, said: "Since January 1, the price of energy prices will halt customers at fixed rates that will compensate for up to 1 billion pounds of gas and electricity.
"The price will ensure that energy costs rise or fall suppliers do not affect their nest, and energy price changes will reflect the fundamental costs of heating and lighting our homes.
"Consumers who want to cut their bills need to be bought for a better energy supply, and while the cap is in place, we will continue to work to make it easier."
Energy and Clean Minister of Growth Claire Perry said, "In recent months, loyal consumer energy has been hit by unjustified rise in prices at already racist rates.
"This government has timely delivered its promise to protect 11 million households of bad value this winter, and today's final capital level will bring a more fair price of energy and put consumers at the heart of the energy market."
However, critics warn that the scheme would endanger households with a false sense of security.
"What?" The research has previously determined that the cap will not reduce customer bills to three in ten dual fuel bids so that while the price limits the financial burden for some households, people should not be rooted in false sense of confidence that this will mean that they are getting the best deal.
"Price limitation can only be temporary repair, which really requires greater competition between suppliers to encourage innovation that is so desperately needed."
Who will benefit from caps?
The cap amounted to 1,137 pounds for 'typical use & # 39; and applies only to the standard tariffs of the supplier. These are expensive bids that you get at the end of a certain period and they are subject to the prices announced every year by suppliers.
A total of about 11 million households have such tariffs and could thus benefit from a cap that Ofgem proposes to save on average about 76 pounds a year on average.
But be careful
The cap will ONLY apply to standard tariffs and with many fixed market offerings that are more expensive than caps today, many hosts could still overcome energy.
According to Which?, A typical energy consumer will spend £ 1332 a year. It's all £ 195 more than an energy cap.
The best thing you should do to avoid falling into this trap is to make sure you are at the lowest possible tariff for your home and your use.
MoneySupermarket estimates that 89 more tariffs are cheaper than the cap right now.
"Customers switching to a competitive fixed rate tariff can save 200 pounds or more on their annual accounts right after we leave in the winter," Murray added.
How to Switch Energy Supplier Suppliers
To do this, you will need:
✔ Your zip code
✔ Your current gas and electricity supplier and the name of your tariff
✔ How much use in kilowatt hours (kWh) on gas and electricity. This can be found in your recent account or on an annual energy statement sent by your vendor.
✔ Your bank details, if you choose to switch and you want to pay by direct debit.
Make sure you need to pay outgoing fees
Contact the vendor to find out how long it is left to your current plan. If you want to switch over, you may have to pay the outgoing fee.
Under Ofgem's rules, if you have 42 or fewer days until your plan expires, you can leave without a penalty.
Be aware that if you are a debtor to a service provider, you may not be able to leave until all outstanding payments are canceled.
Also, if you have a subscriber and you owe more than 500 pounds of energy, you may be denied the opportunity to switch.
How to find a cheaper energy business
After you delete all of the above, it's time to start shopping.
The Energy Regulator Ofgem has a list of approved and independent comparison websites that can help you manage your search in an unbiased manner.
Compare at least two websites to get a feel of prices and a rough price estimate. Remember, not all comparisons of websites compare the same service providers (this is the same as auto insurance) so shop around to quote from as many websites and suppliers as possible.
Here are Thegem's suggested comparison websites (Citizens Advice also has a handy guide on how to compare prices here), you can use this virtual notepad to note the al listed prices:
Energylinx, 0800 849 7077
uSwitch, 0800 6888 557
My service genius, 0203 468 0461
Detect it, (online only)
Switch Gas and Electric, 03333 700 600
Quota, (online only)
Money Supermarket, 0333 123 1983
Simply switch, 0800 011 1395
Trade Energy, 01259 220 270
Energy Helpline, 0800 634 3868
In the Daily Mirror we also have our own energy-free service for free comparison without any problems – here you can go for free.
Power switch jargon switch
"Fixed" or "capped" – The cheaper plans are those that are limited to the duration of the contract, for example 18 months.
"Standard" or "variable" – These tariffs are more flexible because they are not contracted. You will also not be charged for switching to another vendor.
Time of use – The user tariffs have peak speed and off-peak power. The outbreak period usually drops between 22:00 and 8:30. The peak rate is much higher than other tariffs so you decide for this if you plan to use your energy more night than during the day.
green – It is a good option if you want to reduce the impact of your energy on the environment. The energy provider suits you with some or all of the energy you get by purchasing renewable energy sources, such as wind or hydroelectric power plants.
I found a job – what's next?
Once you find the best deal and tariffs for your household, it's time to make sure that you do, contact your service provider and let them know.
Call them and give them a green light. Then it will start the transition process with a 14-day cooling period – you can cancel at any time during that time.
Your new supplier will prompt you to read the meter at a glance and then hand it over to your former vendor for your final account (which should arrive within six weeks). If you have a loan, you will probably receive a check in the post.
If you get Warm Home Discount (see below to apply for this), make sure your new supplier also offers a scheme.
If you have a smart meter, you will need to verify that your new supplier supports smart counters before switching.