Staggering £3.8 billion* lost in energy bills, warn finance experts
Feb 5th 2020
Finance experts TotallyMoney have warned that 27 million UK households are potentially missing out on substantial £300 savings due to price hikes and widespread misconceptions. Research reveals:
- A significant £300† a year could be saved on average in UK households by switching energy tariff
- This equates to customers overpaying by £3.8 billion due to not switching energy tariff or supplier
- A massive 82% of the British public failed to switch energy in 2018‡
- Over half (58%) falsely believe they are already on the best tariff‡
TotallyMoney’s award-winning free credit report has always shown customers how much their money habits affect their credit score. Their brand-new energy switching service helps customers to improve their spending habits, and means they will now see their best money-saving options to ensure they never pay more than they need to.
The lightbulb moment
TotallyMoney customers now get a constantly up-to-date view on how much they can save on their energy bills and can complete a money-saving switch in as little as two minutes. This hassle-free experience will overcome significant barriers for customers, with one in four (25%)‡ believing energy switching to be an inconvenience and are left out of pocket as a result.
Alastair Douglas, CEO of TotallyMoney, comments:
There are 27 million households in the UK (ONS). Of these households, 51% are on an SVT, and 4.3 million of these are on a prepayment meter (Ofgem*).
The average difference between an SVT and a default tariff is £304, whilst the difference between an SVT and a prepayment meter is £167 (Ofgem*).
4,300,000 (prepayment)*£167 (prepayment saving)*51% (percent on default tariff) = £366,231,0004,300,000 (prepayment)*£167 (prepayment saving)*51% (percent on default tariff) = £366,231,000
22,700,000 (households)*£304 (SVT-default tariff saving)*51% (percent on a default tariff) = £3,519,408,000
Total = £3,885,639,000
‡Consumer Engagement in the Energy Market 2018 Report (Ofgem)
For more information, please contact James McCaffrey
- Free credit report providers and credit experts, TotallyMoney, are on a mission to improve the UK’s credit score and help people move on up to a better future.
- TotallyMoney launched its free credit report in late 2017, and today has 3 million customers.
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