As Ofgem prepares to announce updated price cap figures set to take effect in October, an alarming 50% of households appear to be in the dark about what this cap entails.
A survey conducted by comparison website Uswitch shows that among households utilizing variable tariff plans, 68% are not aware of the quarterly changes to the cap, which could directly impact their energy bills.
Furthermore, the survey uncovered that nearly a fifth of those aged 18 to 34 are entirely unaware of the existence of the energy price cap.
Richard Neudegg, Director of Regulation at Uswitch, noted that the imminent announcement of the new price cap underscores the need for reforms in the current system.
Mr Neudegg said: “Unfortunately, the price cap alongside other Ofgem rules currently in place have failed to bring about meaningful competition, as suppliers have no incentive to offer better prices to anyone.
“Energy retailers are barred from offering cheaper tariffs specifically to win new customers due to the regulator’s ban on acquisition-only tariffs (BATs), and when suppliers have no incentive to attract new customers – or fear of losing current ones – consumers lose out.”
