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Switchcraft Founder Andrew Long discusses how the loyalty penalty is still costing £369 a year and what can be done to tackle it.

The energy regulator OFGEM has announced it will be significantly cutting how much energy providers can charge people on Standard Variable tariffs. Switchcraft Founder Andrew Long highlights how it’s still important to switch to find a good deal.

“Suppliers should use their variable tariffs as designed and pass on savings from lower wholesale prices to consumers.”

For the average household, this would be a saving of £16 per month or almost £200 a year if wholesale prices remained low, according to autoswitching site Switchcraft.

Research by Switchcraft, found examples of properties listed on Homes 24, a listings site owned by Zoopla, and OpenRent which claimed to have a higher energy efficiency rating than they actually did.

Switchcraft.co.uk, added: “If consumers think the cap will protect them from paying over the odds for energy, they are sadly mistaken.”

Switch site Switchcraft, said the decision to move ahead with automatic compensation is a massive win for consumers, and the UK energy industry as a whole.

Switchcraft.co.uk, commented: “The regulators decision to move ahead with automatic compensation is a massive win”

Alex Dickson, head of research at Switchcraft, warns that the price cap does not protect consumers from overpaying for their energy.

Switchcraft.co.uk said: “The gap between the default price cap and market leading energy deals is as wide as it’s ever been.”