Some 13.5 million households in the UK are losing out on a total of £2.7 billion by not switching energy suppliers, it has been revealed.
The “ugly truth” of the energy market is that most Britons are overcharged and those who shop around could save around £200 a year.
But experts said “paltry” price cuts from the Big Six energy companies mean customers have been given “false confidence” they are on a decent deal.
The £2.7bn is based on analysis of 2014 energy bills collected from the Department of Energy & Climate Change’s (DECC) Domestic Fuel Inquiry, which collects information on customer numbers by tariff. This data was compared with that from switching sites to find the cheapest possible deal.
The figures have been revealed as the Government launches its major new Power to Switch campaign to encourage the public to change suppliers. It comes amid mounting criticism that the Big Six firms are ripping off customers and failing to pass on the benefits of the collapse in oil prices.
Wholesale gas prices have tumbled by around 20 per cent since December according to reports, but the biggest energy firms have only cut prices of their standard gas tariff by between 1.3 per cent and 5.1 per cent.
Money Saving Expert Martin Lewis said: “We need to shout loud about the benefits of switching tariff. Too many people think energy firms are ‘all the same’. That’s far from true, there are huge differences on both price and customer service. The worry is that news of recent price cuts, even though they were paltry, will have given many false confidence that they’re on a decent deal. Examine the figures and the ugly truth is very different. Even after price cuts, someone on a Big Six supplier standard tariff with typical use will pay £1,158 a year, whereas switch to the cheapest tariff and they’d pay just over £900 a year.
“So it’s worth people taking 10 minutes to see if they can save themselves £250.”