Consumers saved as much as £1 billion on their energy bills last year following the introduction of the price cap at the start of 2019.
That’s according to new data which shows the savings made by around 11 million customers on default tariffs protected by the energy price cap was between £75 to £100 on their dual fuel bills.
A total of 4.4 million electricity customers and 3.6 million gas customers switched suppliers in the nine months to September 2019, with typical households potentially saving an average of around £290 if they moved to one of the cheapest deals on the market.
The price cap, continuing through 2020, is set by Ofgem, which will review it every six months to reflect changes in the cost of supplying energy.
The latest ceiling was set by the regulator at £1,179 per year for a typical dual fuel bill.
Energy and Clean Growth Minister Kwasi Kwarteng, said: “Our bold action to ensure all consumers pay a fair price for their energy is making a real difference to the budgets of up to 11 million households and driving increased competition and innovation in the market which will help keep bills down.
“Record numbers of customers have also decided to switch suppliers this year saving themselves an average of around £290 on their bills.”
The regulator says shopping around and switching is still the best way to save money on energy bills.
Ofgem Chief Executive Dermot Nolan added: “The price caps give consumers who are on default deals peace of mind that they pay a fair price for their energy. Ofgem set the cap at a level which required suppliers to cut energy bills by around £1 billion.
“Consumers can save more money this winter by shopping around for a better deal. While the cap remains in place, Ofgem will continue to work with government and industry to put in place reforms to get the energy market working for more consumers.”