Hundreds of thousands of households on fixed energy deals face £275 bill hike
Hundreds of thousands of British households could see their energy bills rise by £192m at the end of August as 112 fixed deals come to an end.
Data from Uswitch shows an estimated 700,000 households will see their bills go up by £275 on average if their supplier automatically moves them onto a pricier standard variable tariff (SVT).
Some customers could see their bills rise by as much as £371.92, Uswitch said.
This is in addition to the 15 million households currently on SVTs who will see their bills rise by £139 from October after Ofgem raised its energy price cap.
The price cap is meant to offer a safety net for customers who haven’t switched suppliers or tariffs by limiting how much providers can charge for a standard or default tariff each year.
The October hike will take the cap to £1,277.
Customers on fixed tariffs are being urged to check the status of their current energy deal and take action now if their deal is due to expire.
The cheapest fixed deal currently on the market is the Just Join Up 21 18M Fixed Wk28 tariff from Utility Point at £1,079.00, fixed for 18 months — £198 cheaper than the new price cap.
Sarah Broomfield, energy expert at Uswitch, said: “Customers with fixed deals ending this month need to act quickly if they don’t want to be hit by the second increase to the price cap this year.
“The cost of not switching to a new plan when your deal comes to an end can be huge. People could soon be spending as much as £372 more a year on their energy if they don’t take action.”