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Energy bills are set to rise on Monday

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26/08/2015
Households that don’t shop around and switch energy suppliers could see their bills rise by up to £317.76 a year, as nine fixed dual fuel tariffs expire at the end of August.

British Gas, EDF Energy, Npower, Sainsbury’s Energy, First Utility and Flow Energy all have tariffs due to expire at the end of August, at which point customers on these tariffs will be transferred to their supplier’s standard tariff.

Where the standard tariff is more expensive than the current fixed deal, households will see an 8.14 per cent (£90.18) average increase in their annual energy bills unless they shop around and switch to a better deal.

Five biggest potential increases when tariffs expire

Region Supplier Tariff Price increase
Norweb First Utility iSave Fixed v23 August 2015 £317.76(24.29%)
Eastern First Utility iSave Fixed v23 August 2015 £280.78(22.93%)
Southern First Utility iSave Fixed v23 August 2015 £270.91(21.40%)
East Midlands EDF Energy Blue +Price Promise August 2015 £136.59(13.62%)
Eastern EDF Energy Blue +Price Promise August 2015 £132.26(12.11%)

Based on a medium user – 3,200 kWh of electricity and 13,500 kWh of gas per year – paying by monthly direct debit

Impact of tariffs coming to an end on Monday 31 August 

Region Supplier Tariff Price increase
Norweb First Utility iSave Fixed v23 August 2015 £317.76(24.29%)
Eastern First Utility iSave Fixed v23 August 2015 £280.78(22.93%)
Southern First Utility iSave Fixed v23 August 2015 £270.91(21.40%)
East Midlands EDF Energy Blue +Price Promise August 2015 £136.59(13.62%)
Eastern EDF Energy Blue +Price Promise August 2015 £132.26(12.11%)

Based on a medium user – 3,200 kWh of electricity and 13,500 kWh of gas per year – paying by monthly direct debit and averaged across all UK regions

Top ten cheapest dual fuel tariffs

Supplier Tariff Type Annual cost Early exit fees
GB Energy Supply Premium Energy Saver Variable £870 None
extraenergy Fresh Fixed Price Nov 2016 v3 Fixed £889 £25 per fuel
first:utility iSave Fixed October 2016 v2 Fixed £890 £30 per fuel
extraenergy Bright Fixed Price Nov 2016 v2 Fixed £900 £25 per fuel
Sainsbury’s Energy Fixed Price August 2016 Fixed £903 £30 per fuel
GnERGY Fixed September 2016 v1 Fixed £909 £25 per fuel
Green Star Energy Rate Saver 12 Month Fixed 2508 Fixed £913 £30 per fuel
= Flow Energy Flow Variable Variable £914 None
= Flow Energy Connect Fixed £914 None
OVO Energy Better Energy Fixed (All Online) Fixed £918 None

Based on dual fuel, payment by monthly direct debit, averaged across all UK regions and for households with an annual energy usage of 13,500kWh gas and 3,200kWh electricity (medium user). Correct as of 26/08/2015. List excludes collective deals.

While most of the tariffs ending in August will cause significant price rises for customers who fail to shop around and switch, some customers may see a reduction in their energy bills when their fixed tariff comes to an end. This is because their supplier’s standard tariff is cheaper than the fixed deal they are currently on.

Because of this, customers on the British Gas Fix & Control Aug 2015 and Fix & Reward August 2015 tariffs, as well as households the Sainsbury’s Energy Fix & Reward August 2015, will see their bills drop by an average of £58.06 (4.78%) when their tariffs come to an end.

However, they could save almost £300 simply by going online and switching to one of the UK’s current best buys (see table below).

Caroline Lloyd, energy spokesperson at Gocompare.com, said: “For years now, fixed tariffs have proved popular, due to the fact they have tended to be the most competitively priced deals. However, fixed tariffs expire, and when they do, customers are transferred to their providers’ standard tariffs, unless they proactively switch to another tariff or supplier.

“Standard tariffs do not represent good value. There are always other tariffs – whether fixed or variable – that will provide better prices than a standard tariff. Even for those people who will save money by moving onto their supplier’s standard tariff when their fixed tariff ends, it’s well worth their while to go online, shop around, and switch to a better deal.

“There are some competitive tariffs available at the moment, both fixed price and variable, with potential average savings of almost £300 to be had. So whether you have a fixed tariff coming to an end soon, or are on a standard or variable tariff already, get online and compare the deals available to you.”

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