You are here: Home - Household Bills - News -

Thousands of households face £166 energy bill jump

Written by:
Hundreds of thousands of households will see their energy bills rise by an average of £166 in March.

Analysis by has found that there are 182 fixed energy tariffs coming to an end over the next month. And there are nearly 250,000 households on these tariffs, who face a significant jump in their annual energy bill if they don’t sign up for a new deal.

What happens when your energy deal ends?

Energy providers attract customers with their fixed and variable tariffs, which are their cheapest deals. This initial deal will typically run for a year or so.

And once it finishes, you move onto the provider’s standard tariff. These are the most expensive tariffs on the market, and the ones which are subject to the price rises periodically announced by providers.

It’s because of the poor value provided by these tariffs that Ofgem, the energy regulator, introduced the energy price cap which limits precisely how much providers can charge on their standard tariffs.

The energy price cap currently stands at £1,042, but is due to rise to £1,138 in April. This includes an additional £23 that providers can charge in order to cover for the sums they have lost due to unpaid bills as a result of the pandemic.

Switch and save

Of course, you don’t have to move onto your lender’s standard tariff. You could instead shop around and switch to a new fixed tariff, as once your current deal ends you won’t have to pay any exit fees if you want to move to a different deal.

Peter Earl, head of energy at, said that with the imminent increase to the energy price cap, now is absolutely the right time to take action and see if you can save money by moving to a new provider if your current tariff is nearing its end date.

He continued: “The impact that the pandemic is having on many people’s finance is becoming particularly stark, and as our latest research shows, the price cap increase is likely to push a number of households, particularly those with children at home, further into financial difficulty.”

Problems switching

Unfortunately, while switching makes a lot of financial sense, it can present its own problems.

Last week some of the nation’s biggest suppliers agreed to refund a whopping £10m after it emerged that many broke price protection rules in place for those who are switching to a new deal, with thousands of households charged twice. 

What’s more, a study by complaints experts Resolver has found that as many as one in four have experienced issues with an energy switch, ranging from meter reading discrepancies to demands for payment long after the switch has taken place.

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.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

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