According to new data from Uswitch (opens in new tab), over a million UK households will collectively face an energy bill price hike of £324m at the end of the month, when 56 fixed deals finish.
This would be the highest increased cost since July 2019 and would see an average individual rise of £244 a year on the bills of those affected.
However, these rising prices can be avoided if consumers take action by running an online energy comparison to find and switch to a cheaper deal.
- Switch your energy supplier: find the best deals in your area now
Why will the bills increase?
When any fixed deals end, energy providers automatically move customers onto their default or standard variable tariffs (SVTs). However, these are often much more expensive and don’t offer very good value. The costs of SVTs has also recently risen because energy regulator Ofgem raised the price cap by £96 at the beginning of the month.
This price cap – which was first introduced in January 2019 and is reviewed every six months – is meant to help keep energy bills down for UK households by setting a limit on how much suppliers can charge for their default tariffs and SVTs. However, with the recent increase, it is now set at £1,138. This means consumers who are on these finishing fixed deals could soon be paying much more for their energy - in some cases as much as £319 more a year, £75 above the expected average increase.
Sarah Broomfield, energy expert at Uswitch, offered her comments on the situation and stressed the importance of looking to switch to a better deal: “The cost of not switching to a new plan when your deal comes to an end can be huge, and consumers could soon be spending as much as £319 more a year on their energy if they don't take action.
“More than a million households will be on the receiving end of a shock increase in their energy bills from next month if they don't act quickly."
How to switch your energy supplier
The good news is that whether you’re already on an SVT, you’re one of those affected by these 56 fixed tariffs ending or you’re simply looking for a better deal, you have the option to switch.
By using an online energy price comparison tool, you’ll be able to find out what the best energy deals are near you and get a breakdown of the different tariffs from the UK’s best energy suppliers. This only takes a few minutes as all you need to do is provide some basic details about your home and your energy use. Then, you’ll quickly be able to find out just how much you could save.
Alternatively, you can also simply contact your existing provider directly to see if they can offer you a cheaper tariff.
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