Exclusive. Energy price cap to rise by '£100' in Apr, millions on standard tariffs to pay more

SWITCH NOW, save £100s & beat the hike incl Bulb special, cheap deal

First over to Martin: "If you've not switched tariff in the last year, it's very likely you're paying over the odds on your energy firm's expensive standard tariff. You may think 'isn't there a price cap on standard tariffs, which protects me?' There is, it launched on 1 Jan, but it ain't the best, and it's about to get worse. Here are my five price cap need-to-knows...

1. It's not actually a cap on prices. Instead, it caps the rate charged. Some have reported the cap is £1,137/yr as the max anyone will pay - that is untrue. 

2.  Your cap depends on your usage. The £1,137/yr average figure is what the cap would be for someone with typical usage. If you use more, your cap will be higher. Use less, and it's lower.

3. The cap reduced many standard tariffs by 10%, but switching would've saved 25%. The cap did act to cut costs, but far bigger savings are possible by doing a comparison and switching. 

4. The cap will RISE by about 10% in April. The first price cap rate only lasts from 1 Jan to 31 Mar after which it changes. That's because the cap is reviewed by regulator Ofgem - which sets it based on a published formula about wholesale prices (what energy firms pay) over a 6mth period, the latest of which ends at the end of Jan.  

As that period is nearly over, we've worked with an energy analyst's data and we can now pretty accurately predict the cap will rise by about 10% in April. So for someone with typical use it'll rise from £1,137/yr to about £1,240/yr.

5. Compare and your PREDICTED SAVINGS ARE UNDERESTIMATED. If you're on a standard tariff, price comparisons, including our own Cheap Energy Club, base your savings on the current energy price. Yet all the big six prices are within a quid or two of the cap, and will almost certainly jump with it. So your savings are substantially underestimated - and don't let small savings stop you switching.  

Now over to the team to review the top tariffs..." 

These days the top of any comparison will likely feature small firms you've not heard of. If we're honest, often we don't know much about them either, as weak regulations almost mean one man and his dog can set up a firm. So you've little or no knowledge of their service or financial strength - hence why eight firms have gone bust in the last year.

Of the eight current cheapest, we've only decent info and feedback on three as the others are tiddlers or newbies. So we decided to review the ones we know (though all will show in our full comparison).

Savings below assume you pay the current price cap based on typical use till Mar, then the estimated £1,240/yr cap after. However, the exact amount you pay is based on your tariff, usage and region so everyone's savings vary. And don't forget, as Martin says above, comparisons currently underestimate your likely saving if you're on a standard tariff.

• New. Cheapest variable: Bulb, top service and special MSE £50 boost - save £240/yr 
  
  Bulb has 860,000 customers and one of the highest customer service ratings at 76% 'great'. Switch to the Bulb Vari-Fair tariff via this link and you get the usual £25 Cheap Energy Club cashback plus an extra £25 bill credit.
  
  Factor that in, for the first year, and for someone on typical bills it's an avg £970/yr, the cheapest variable deal, though there are two tiddler firms with cheaper fixes.
  
  The price is variable so can rise, but if it does, there are no exit fees to leave. Bulb imposed three rises last year, at a combined 19%, but the fact it's still in the best buys shows this is less than much of the competition. Here are the key points (yet if you want price certainty, go for the fixes below)...
  
  - It's for dual-fuel (ie, gas & elec) custs only.
  - It's not avail in N Ireland.
  - Bulb pays any exit fees your current supplier charges, up to £60/fuel.
  - You can't keep it if you move home.
  - You must pay by monthly direct debit & get paperless bills to qualify. 
  - Prepay customer? The deal's available for a typical £1,011/yr.
  
  PS: Bulb has a refer-a-friend scheme, which normally pays the referrer and newbie £50 each if the newbie switches to this tariff via Bulb. Our deal pays the newbie the same but you don't need to know an existing customer. 
  
  
• Cheapest fixed rates: Avro for 12mths. Or protect from price hikes longer via Green Network Energy for 18mths. Both with good service and save £220/yr  
  
  With a fix, the rate per unit of energy is, er, fixed for the term but of course, if you use more, you pay more. Here are the standout deals:
  
  - 12mth fix for a typical £987/yr (but no cashback). This is from Avro, which has been around since Dec 2015 and has over 500,000 customers, plus it always performs well in our customer service polls, with 65% rating it 'great' in our most recent. See how it compares via a cheap fix comparison.
  
  - 18mth fix for a typical £989/yr incl MSE cashback. It's from Green Network Energy, which has been supplying UK homes since Oct 2016, is backed by a large Italian firm and has 200,000+ customers. We've worked with it in numerous with recent energy exclusives without any significant issues, and it was rated 69% 'great' in our latest poll. See our long fix comparison to see how it compares for you.
  
  The fixed deals above are undercut by cheaper tiddlers - incl Lumo, Orbit Energy, People's Energy, Pure Planet and Utility Point - starting at £963/yr incl MSE cashback based on typical use.
  
  
• Prefer a big name supplier? Right now the cheapest from a Big 6 firm is a British Gas 1yr fix at a typical £1,027/yr after MSE cashback - plus most homeowners get 'free' boiler cover for a year. Use our big name provider comparison to see how it compares.
  
  
• Switch without switching. Even though switching is usually best, if you really don't want to, at least move off your firm's expensive standard tariff to its cheapest deal (same energy, same service, same safety, cheaper price). To find your current firm's cheapest, use our my current supplier comparison.
  
  
• Live in Northern Ireland? Our Cheap Energy Club, like all UK comparison sites, does not currently include Northern Ireland, but you can do a comparison via Cheap NI Electricity or the Consumer Council for Northern Ireland's tool.

Back to Martin: "A massive 3.6m of you watched last week's car and home insurance cost-cutting tricks show (if not, watch it here). Next week, how much do you need to save in case your kids go to uni? This isn't about tuition fees, it's about the hidden parental contribution of £1,000s. Every parent (and grandparent, and student) should watch. Plus, reclaiming PPI for the deceased, and Brexit currency questions. Do watch, or program the VCR."