Millions of households could be able to switch to cheaper energy tariffs this summer
With the looming threat of rising energy prices this April, many billpayers may be looking for alternative providers in a bid to save money.
Experts at Cornwall Insight highlighted that this could give suppliers the opportunity to provide fixed tariffs that will compete with the government cap. However, it warns that this will be subject to the state of the wholesale market which can be incredibly volatile.Kate Mulvany, Senior Consultant at Cornwall Insight said: “The energy market is complex, making it difficult to predict the effects of policy changes on consumer behaviour and energy pricing.
The introduction of the MSC means that if wholesale energy prices drop by more than 10 per cent from when the current price cap was set, then a supplier that gains a customer would have to pay the original supplier in line with the charge. This could limit the incentive for suppliers to provide competitive switch tariffs.
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