Households face £84m energy bill hike
According to Uswitch.com, 68 fixed energy plans will come to an end by the end of January.
Fixed energy tariffs offer a set unit price per kWh of gas or electricity used. But when the deal finishes, the unit cost usually shoots up. Households out of contract are typically moved to energy suppliers’ standard variable tariffs (SVTs) if they don’t take action and switch to a new deal.
Higher prices will be a triple blow to households who are already facing increased energy usage due to freezing temperatures while working from home and home schooling.
Uswitch is urging people to check their energy deal, as those impacted could see bills rise by up to £171 if they don’t take action and switch supplier or tariff.
The cheapest deal currently on the market is the SimplyLoyal21 tariff from Simplicity Energy at £880 a year fixed for 12 months.
Sarah Broomfield, energy expert at Uswitch.com, said: “People often use January as a prime time to detox their finances, and it means that many fixed deals taken out this time last year are about to come to an end.
“Anyone who does not act now by signing up to a new tariff will automatically move onto their supplier’s standard variable tariff, which could add as much as £171 to bills.
“It is also likely that the energy price cap will increase from April, meaning bills are likely to become more expensive. This makes it even more important that people who are about to move onto a standard variable tariff switch suppliers now.
“With the majority of the country spending more time at home during this national lockdown, combined with the cold weather, we will be using much more energy to keep ourselves warm.”