Challenger energy firm Octopus Energy today reveals the extent UK constituents are being ripped off by the Big Six energy providers. In every constituency in the UK, consumers are collectively overpaying millions of pounds for their household energy.
Today, Octopus Energy also launches thepriceofpower.co.uk, which will allow any UK consumer to input their postcode and find out exactly how much their constituency is being ripped off.
Following the price cap pledge in the Conservative manifesto and ahead of the Queen’s Speech, Octopus Energy is fully supportive about the benefits of a price cap to stop the Big Six from ripping off customers.
Octopus Energy believes a cap is the only way of fully protecting customers as the current generation of smart meters can make switching harder. Ofgem figures show the annual switching rate was less than 16% last year, down from 17% in 2010, even with over 2 million smart meters now installed in UK homes.
Greg Jackson, Founder and CEO of Octopus Energy, said:
“With over 50 energy suppliers now in the market, an end to dodgy pricing and dirty tariff tactics would turbocharge competition to bring bills down for everyone and save us all billions of pounds a year. The Big Six hate the idea of a price cap because it would finally put an end to their business model of overcharging loyal and confused customers.”
John Penrose MP who has been campaigning for a price cap to be introduced to end rip-off tariffs, said:
“Millions of energy customers have been ripped off for decades. The only way to make the energy market more competitive – without distorting the market – is by introducing a temporary relative price cap to protect all customers. All parties promised it in their manifestos, the challenger energy companies have been clamouring for it and we must now deliver it.”
Octopus Energy has been campaigning to bring fair prices to energy. Octopus research revealed the Tease and Squeeze tactics of many suppliers, and recently Octopus were the most vocal backers of a proposed relative price cap in energy. They also recently launched the UK’s first transparent tariff, Octopus Tracker, which is tied to the daily wholesale price of gas and electricity.
Note to editor:
Octopus Energy’s data scientists have used publicly available industry data and applied their own analysis to identify how much each UK constituency is overpaying for their energy on Big 6 SVTs (The CMA investigation identified that 2/3s of households are still on Standard Variable Tariffs.) Octopus Energy has also calculated this overpayment by UK region.