You are here: Home - Household Bills - News -

300,000 households could face £247 energy bill hike

0
Written by: Danielle Levy
29/03/2019
Households across the UK must prepare for higher energy bills unless they switch tariff or provider soon, new analysis has shown.

Close to 300,000 households across the UK will automatically be switched over to a more expensive default tariff during the second quarter of 2019, according to comparethemarket.

The comparison site pointed out that 235 fixed energy tariffs are coming to an end during the second quarter.

Unless the customer chooses to switch straight after the tariff ends, these will automatically roll over to a default tariff, which could cost UK households £72 million collectively.

Comparethemarket’s analysis of the fixed tariffs ending during the second quarter found that the average increase to energy bills is expected to be £247 per household, £54 more in comparison to the previous quarter.

The government’s energy price cap, which was introduced in January of this year, is due to increase on 1 April, pushing ‘default’ tariffs higher by an average of £117 for at least the next six months.

Comparethemarket estimates that the biggest hikes in energy costs will impact households whose tariffs ended in May, where the average annual energy bill increase will be £287.

However, April will see the greatest number of customers affected, with 136,000 households expected to move over to more expensive ‘default’ tariffs – at a combined cost of more than £33 million. This situation could be avoided if they switch to a cheaper tariff.

Perils of the price cap

Peter Earl, head of energy at comparethemarket, commented: “With 11 million energy customers already on a standard variable tariff and hundreds of thousands more set to be automatically rolled onto one, it’s clear that the price cap is doing little to solve the fundamental issue – that customers on these tariffs are overpaying for their energy.

“Many people thought the price cap would offer a safety net from unfair and regular price rises but the changes in wholesale energy markets have meant the opposite. The best course of action affected households can take is to find a cheaper alternative and secure a fixed priced tariff.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

Low-income pensioner? You could gain £3k top-up

Hundreds of thousands of retirees struggling with a low income are missing out on Pension Credit worth £3,300...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week