British households are preparing to shop around in anticipation of a rise to the government’s energy price cap later this week.
Two thirds of Brits said they would switch suppliers if bills go up in the wake of the price cap increase, research from Opinium shows.
The price cap is widely expected to rise by about £80 to £100 just months after it was first introduced.
Regulator Ofgem will announce its decision on Thursday morning, with the change set to come into force on 1 April. The rise will likely mean the average household on a standard variable tariff will pay around £1,237 per year for its energy.
It is expected to increase the country’s energy bills by around £1.1bn, analysis from switching service Look After My Bills shows.
However, only 28 per cent of households of affected households think their energy bills will rise off the back of the change.
“Clearly Ofgem’s expected increase to the energy price cap will incite dissatisfaction among consumers, who have only just started to benefit from the initial cap. Over a quarter of households on standard variable tariffs – which the price cap is designed to protect – are concerned their energy bills will now become more expensive,” Adam Wilson, head of energy at Opinium.
Customers were promised savings of around £76 every year as the price cap came into force at the beginning of last month.
Read more: Ofgem is set to cap energy bills
But now, the £80 to £100 increase will more than wipe out gains, critics say.
Uswitch head of regulation Richard Neudegg tweeted: “[The price] cap was sold as helping the most vulnerable, but in reality it was never going to work — deeper, targeted help for those truly most in need would have been a much better option.”