Jane Lucy, CEO and Founder of The Labrador highlights the measures that energy suppliers are willing to go to get around the cap
As Ofgem have announced the date for the implementation of the price cap, it is imperative to look at the energy industry since the announcement of the cap and the ways in which energy giants are using this ‘solution’ to their advantage. Reports have indicated a 21% rise in the cost of lowest energy tariffs with many providers growing increasingly close to the capped level.
Jane Lucy, CEO and Founder of The Labrador is able to discuss:
- Ofgem have raised the price cap by less than 0.001%. This doesn’t even begin to match the 21% price hikes that we have seen in a similar time period- whose interests do Ofgem have at heart?
- Whilst suppliers are arguing about an increase in wholesale costs, they are not being honest about the lower costs involved with customers paying by direct debit – a value that is almost double the cost allowance for the smart meter programme.
- Smaller suppliers are continually hiking direct debits in advance of the winter months. For example, Igloo have risen their prices by 20% in advance of winter which, for an average user, risks taking the annual cost £62 above the price cap.
- Will playing with direct debits enable suppliers to get around the price cap?
- Will suppliers commit to lowering the direct debits to ensure that the annual cost is adhered to?
- Can we really believe that Ofgem will protect consumers or will they prioritise suppliers’ commercial interests above consumers?
Jane is of the opinion:
‘Ultimately, consumers cannot rely on the price cap to stop overcharging within the energy industry. I cannot stress enough the importance of consumer agency, of auto-switching and of deciding not to sit on an expensive standard variable tariff. Smart switching technology has enabled auto-switching to become effortless, timeless and priceless, there has never been an easier way to save £357’.