Thousands of households will see their annual energy bills increase by an average of £200 in the next three months, new research shows.
This is because 130 fixed-rate energy deals, many of which are offered by the Big Six providers, are due to end.
Households with one are automatically rolled onto their provider’s expensive standard variable tariff when the fixed deal expires.
But by taking action and switching, those affected could avoid paying more and may even be able to save money on their annual bills.
Rising bills: 130 fixed-rate energy tariffs are due to expire in the next three months
Many of the tariffs ending are from the Big Six energy providers such as EDF, Npower and Scottish Power.
There are also several from smaller suppliers such as First Utility, PFP Energy and ENGIE, according to the data from comparison website Compare the Market.
We reveal the first set of tariffs expiring by the end of April at the bottom of the article.
The overall average annual increase to bills is £200 for households that don’t switch to a new tariff and are rolled onto the provider’s standard tariff, highlighting why customers should act.
Exactly how much more will be added to the bill depends on the price of the fixed-rate tariff and the price of the standard variable tariff.
Energy prices have been rising steadily over the past year and all of the Big Six providers have already hiked prices at least once.
|Month||Total cost to consumers||Estimated number of customers affected||Average increase to bills||Number of tariffs ending|
|Source: Compare the Market, 19/04/2018|
Last week British Gas confirmed another price hike of 5.5 per cent, or £60 a year, for those with a standard variable tariff from May 29th, while EDF said prices would rise by 1.4 per cent, or £16 a year, from June 7.
Providers have blamed these hikes on rising wholesale prices and an increase to the cost of Government schemes.
It’s now likely the rest of the Big Six will follow suit with price hikes.
With so many fixed-rate tariffs are ending, it’s important to make sure you’re not overpaying for the energy you use.
For those with a fixed-rate tariff, the amount you pay per unit of energy remains the same for the whole of the period, usually 12 months.
Whereas if you are paying for you supplier’s standard tariff, the price can fluctuate and will be susceptible to price rises and falls.
Standard tariffs have been talked about a lot in the past year and they are usually the most expensive available.
The Competition and Markets Authority published the results of an investigation into the energy market in 2016 that found those on these tariffs were collectively overpaying by around £1.4billion every year.
Households are rolled onto a standard variable tariff at the end of the fixed-rate period
It is now expected a price cap will be introduced for all households with one of these bills, but the timing for when this will be implemented, and the amount it will be, are yet to be confirmed.
By choosing a fixed-rate tariff, households can save a significant amount as the price paid per unit of energy remains the same for the length of the contract.
Peter Earl, head of energy for Compare the Market, said: ‘There is no question that ‘default’ or, the more infamously named, ‘standard variable tariffs’ are bad value for the majority of the UK that remain on them.
‘The Government is expected to take action to cap the prices of these products in due course, but these measures mask the best solution for cost weary customers.
‘For those that haven’t yet shopped around, they can expect to save around £200 if they switch to the cheapest tariffs on the market. It is essential that customers take the time to look around for the best deal to avoid being ripped off.’
|Supplier||Tariff||Average tariff cost||Standard variable cost|
|Affect Energy||Fixed Until May 2018||£866.84||£869.14|
|Better Energy||Online Fixed 1 Jun 18||£410.29||£479.59|
|Better Energy||Postal Fixed 1 Jun 18||£429.45||£479.59|
|British Gas||HomeEnergy Fixed Jun 2018||£919.85||£1,101.13|
|EDF Energy||Blue+Price Freeeeze June 2018||£854.88||£1,141.50|
|EDF Energy||BIue+Fixed Prepay June 2018||£988.94||£1,141.50|
|EDF Energy||Blue+Fixed Price June 2018||£945.40||£1,141.50|
|EDF Energy||Blue+Price Protection Jun18||£1,026.73||£1,141.50|
|EDF Energy||Blue+Price Protection Jun18v2||£993.29||£1,141.50|
|EDF Energy||Online Saver Jun18||£963.37||£1,141.50|
|EDF Energy||Online Saver Jun18v2||£1,012.56||£1,141.50|
|ENGIE||ENGIE Fixed June 18 Paper Billing||£948.34||£1,058.08|
|ENGIE||ENGIE Fixed June 18 Paperless||£916.84||£1,058.08|
|ENGIE||Green Fixed June 18 Paper Billing||£981.47||£1,058.08|
|ENGIE||Green Fixed June 18 Paperless||£949.97||£1,058.08|
|ENGIE||ENGIE Fixed June 18 v2 Paper Billing||£965.05||£1,058.08|
|ENGIE||ENGIE Fixed June 18 v2 Paperless||£933.55||£1,058.08|
|ENGIE||Green Fixed June 18 v2 Paper Billing||£998.17||£1,058.08|
|ENGIE||Green Fixed June 18 v2 Paperless||£966.67||£1,058.08|
|Extra Energy||Clear Fixed Price June 2018 v1||£934.96||£1,101.13|
|first:utility||iControl Fixed June 2018||£999.36||£1,131.72|
|first:utility||First Fixed June 2018||£983.83||£1,131.72|
|first:utility||First Fixed June 2018 plus||£981.03||£1,131.72|
|first:utility||First Fixed June 2018 v3||£884.98||£1,131.72|
|first:utility||Super League Rewards Plus June 2018||£960.35||£1,131.72|
|first:utility||First Fixed June 2018 v4||£924.32||£1,131.72|
|first:utility||First Fixed June 2018 v5 plus||£993.47||£1,131.72|
|first:utility||Home Services Fixed June 2018 Online||£923.56||£1,131.72|
|first:utility||Home Services Fixed June 2018 Full Services||£956.86||£1,131.72|
|first:utility||Home Services Fixed June 2018 v2 Online||£912.89||£1,131.72|
|first:utility||Home Services Fixed June 2018 v2 Full Service||£946.46||£1,131.72|
|Flow Energy||Flow Fixed July 2018||£908.91||£1,026.91|
|GnERGY||Fixed June 2018 v2||£963.37||£1,100.42|
|GnERGY||Fixed June 2018 v1||£948.80||£1,100.42|
|Npower||Feel Good Fix June 2018||£831.36||£1,165.67|
|PFP Energy||Together – June 2018 – fixed 47 Paperless||£900.82||£1,101.13|
|PFP Energy||Together – June 2018 – fixed 47 Paper Billing||£940.82||£1,101.13|
|PFP Energy||Together – June 2018 – fixed 48 Paperless||£900.82||£1,101.13|
|PFP Energy||Together – June 2018 – fixed 48 Paper Billing||£940.82||£1,101.13|
|PFP Energy||Together – June 2018 – fixed 50 Paperless||£872.33||£1,101.13|
|PFP Energy||Together – June 2018 – fixed 50 Paper Billing||£912.33||£1,101.13|
|PFP Energy||Together – June 2018 – fixed 51 Paperless||£864.38||£1,101.13|
|PFP Energy||Together – June 2018 – fixed 51 Paper Billing||£904.38||£1,101.13|
|Sainsbury’s Energy||Fixed Price June 2018||£953.02||£1,101.13|
|ScottishPower||Help Beat Cancer Fixed Price Energy Jun 2018||£856.07||£1,147.45|
|ScottishPower||Help Beat Cancer Fixed Price Energy Jun2018 Online||£845.57||£1,147.45|
|ScottishPower||Online Fixed Price Energy June 2018||£893.57||£1,147.45|
|ScottishPower||Online Fixed Price Energy June 2018 v2||£952.38||£1,147.45|
|ScottishPower||Online Fixed Price Energy June 2018 v3||£1,038.54||£1,147.45|
|ScottishPower||Online Fixed Saver June 2018||£1,022.47||£1,147.45|
|ScottishPower||Online Fix and Save June 2018||£1,041.99||£1,147.45|
|Spark Energy||Spark Protected (June 2018)||£1,008.64||£1,101.13|
|Source: Compare the Market, 19/04/2018|
Cut your energy bills
If you have been stuck with the same provider for some time, chances are you could shave hundreds off your energy bills.
Millions of households are sat on their provider’s most expensive, out-of-contract deals. But switching to a better deal can instantly save you money.
According to This is Money and MailOnline’s expert partner service, energyhelpline, one in ten families could cut their annual dual fuel bill by £537 a year by ditching an switching.
You can do your own postcode comparison in minutes using the tool above – or here – to find the best price.