There is a major lack of awareness among consumers of how much the price cap is expected to rise by in October, research by comparison service Uswitch.com has suggested.
A weighted national survey undertaken on behalf of Uswitch by Opinium asked 2,000 adults what they think will happen to the price of their standard variable tariff (SVT) in October following Ofgem’s announcement which is expected next week.
Recent estimates by experts at Cornwall Insight predict the default tariff cap, which is currently set at £1,971, will increase by £1,611 to £3,582 in October. Similar forecasts have also been made by Investec.
However, respondents to Uswitch’s survey said on average they believe the cap will increase by just £487, underestimating the experts’ forecasts by £1,124.
A total of 27% of households, representing more than 7 million billpayers, said they do not know what is going to happen to the cap, while 12% believe it will actually decrease.
Just 8%, equating to around two millions households, said they believed the cap would rise by more than £1,500, in line with what experts are predicting.
Richard Neudegg, director of regulation at Uswitch.com, said: “With the summer holidays in full swing, it’s not surprising that so many people haven’t been on top of the news about changes in the price cap.
“The promised £66-a-month over winter, while a good start, will barely touch the sides of the predicted increase.”
Earlier this year, former chancellor Rishi Sunak unveiled an £11.7 billion energy bills support scheme, which will see most households given a £400 discount off their bills this winter, with 8 million low-income households receiving one-off payments of £650.
Uswitch however is calling for the £400 support to be increased by at least £200. Meanwhile the £650 payments to vulnerable households should be increased to £950, with the extra £300 being paid in January.
Neudegg added: “The energy bill support needs to be urgently reviewed. The new predictions will leave a lot of people worried about how they are going to afford their bills this winter and beyond, based on the sky-high predictions through to next October.
“Households desperately need to know that sufficient financial support will be provided.”