Capped tariffs: It's safe to come out now

10 May 2007
All but one of the UK's major energy suppliers have now removed penalty charges on customers who leave capped tariffs early, moneysupermarket.com has found.

Capped tariff offers set prices at a constant level for a predetermined period, giving customers the peace of mind of a fixed rate of payment at a time when energy prices were soaring.

The price customers paid for this security was often a fee as a disincentive from switching to a rival provider.

But now that every energy supplier has introduced price cuts and all except British Gas have removed the penalty charges on leaving a capped tariff deal, it makes sense to switch, says moneysupermarket.com's head of utilities, Paul Schofield.

"In this era of tumbling gas and electricity prices, I'd encourage all customers to assess their current situation," he commented.

A customer paying the average bill across British Gas' capped tariff deals would save over £171 by swapping to the cheapest tariff on the market, while an EDF customer could save themselves £233.

Only British Gas' 'Price Protection 2010' tariff has kept its early departure disincentive in place.

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