More than 218,000 households could be automatically moved onto more expensive ‘default’ energy tariffs this month if they do not switch tariffs or providers when their deals come to an end.
In May, there are 157 fixed energy tariffs coming to an end, according to new research by comparethemarket.com which could mean an average increase to energy bills of £280 per household.
comparethemarket.com ’s analysis reveal that if customers do not switch when their fixed tariff ends, energy companies are set to benefit from a huge ‘inertia windfall’. Rolling off fixed term deals onto default tariffs could collectively cost UK households an extra £61 million a year, compared to their current energy costs.
In order to avoid rolling onto a standard variable tariff (SVT), comparethemarket.com customers can set up a savings alert and let AutoSergei do the legwork. More than half a million customers have already signed up to this service. Customers will receive regular alerts when a cheaper tariff becomes available to them, as well as getting a notification when their fixed deal is about to expire.
Peter Earl, head of energy at comparethemarket.com, said: “Each month hundreds of thousands of households risk falling onto a standard variable tariff which means many end up paying more than they should do. Energy companies are the only ones to benefit. The good news is that customers do not have to take these price increases lying down. It takes very little time to put your details in and find a new deal that could potentially save you hundreds of pounds.”
