Millions of UK households are being urged to take immediate action on their energy deals, as new analysis reveals a staggering number are languishing on expensive default tariffs. Experts warn that families are missing out on potential savings of hundreds of pounds by not exploring fixed-rate options available below the official price cap.
The Scale of the Overspend
Approximately 22 million households are currently on a Standard Variable Tariff (SVT), paying the absolute maximum permitted by the Ofgem energy price cap. This means they are not taking advantage of numerous fixed deals that could offer significant financial relief. Industry analysts suggest the average home could save between £140 and £260 annually by making a simple switch, with some households potentially saving as much as £700 to £715 per year.
The current price cap, set for the period from 1 January to 31 March 2026, is £1,758 for a typical dual-fuel household paying by direct debit. This marks a slight increase of 0.2% from the previous cap of £1,755, which was in effect from October to December 2025.
Debunking the Switching Myths
A major barrier preventing people from changing supplier is a series of persistent misconceptions. One common fear is that the switching process is a lengthy and complex administrative headache. In reality, most switches are completed within seven working days, with the new supplier handling the entire changeover and the cancellation of the old contract seamlessly.
Another widespread concern is that the energy supply will be interrupted or that engineers will need to visit the property. This is a physical impossibility, as the gas and electricity infrastructure remains the same. There is zero risk of losing power during a switch.
Understanding Your Rights and Options
Many consumers mistakenly believe they are locked into contracts. However, the vast majority of those on variable rates are free to move at any time without penalty. Even customers on fixed deals can usually switch freely if they are within the final 49 days of their contract.
While some assume all energy deals are essentially the same, the market is competitive. Numerous suppliers now offer fixed rates that sit comfortably below the official price cap. It is crucial, however, to check the small print for any early exit fees, as these cheaper fixed deals typically require a one-year commitment.
A further myth that deters action is the belief that switching will harm a person's credit score. Changing energy provider does not damage your credit rating. A new supplier may perform a soft credit search when setting up a direct debit, but this does not impact your score.
The message from energy experts is clear: with winter approaching, there has never been a more critical time to review your energy contract. By confronting these myths head-on, households across the UK can unlock substantial savings and gain greater control over their essential bills.
