Thousands of UK households face energy bill hikes of almost £200 on average as gas and electricity providers roll customers onto standard variable tariffs.
A total of 54 fixed-rate energy deals are set to expire before the end of August, according to research by price comparison site Money Supermarket. This means thousands of customers are in danger of being rolled on to more expensive tariffs just as the colder weather begins to kick in.
There are 19 tariffs ending in June, 16 in July and a further 18 in August from the likes of EDF, British Gas, Scottish Power, Npower and smaller suppliers such as GnERGY and Affect Energy.
Standard variable tariffs are typically the most expensive and many consumers do not realise that they are being moved on to them. Households on these deals could see their bills rise by £192 on average if they don’t take action and secure another fixed rate before their tariff end date, the researchers estimate.
Bills have already risen in the past year, with all of the major suppliers announcing price increases.
Stephen Murray, energy expert at MoneySupermarket, recommends that anyone who is due to come to the end of their fixed-rate tariff should ensure they switch to a new deal which will “significantly” reduce the increase they face. “The majority of fixed deals include exit penalties designed to deter customers from switching during the period. However, these cannot be charged within 45 days of the tariff end-date, meaning customers have over six weeks to switch, penalty-free,” Mr Murray said.
“The switching process doesn’t take long, but those households with deals ending in June need to act now to maximise the benefit.”
