Prior to the increase of the default price cap on 1 April 2019 to £1,254/year, we reported on 14 March that some suppliers were already positioning their default variable tariffs against the increased cap. We also reported that the gap between default and market-based fixed tariffs was increasing as wholesale energy markets were falling.
Our chart this week highlights that throughout March the tariff gap trends continued. This is due to more suppliers pitching their default tariffs against the new cap while wholesale markets and fixed tariffs continued to fall. Our measure of wholesale energy costs for energy tariffs now stands at £346/year—its lowest value since 10 April 2018 (£343/year).