Research from Uswitch has revealed that 700,000 households across the UK face a £192 million rise in their energy bills when 112 fixed-term energy bills expire at the end of August.
The data from Uswitch also shows that affected households will see their annual energy bills rise by up to £275 on average, when they’re moved onto their supplier’s standard variable tariff. Traditionally, these tariffs provide the worst value on the market and, in some instances, affected households could see their bills rise by a whopping £371.92.
Thankfully, if your fixed-term energy deal is due to come to an end, then it’s not too late to take action and avoid the price hike.
By running an online energy comparison, you can lock in a great deal from one of the UK’s best energy suppliers. The whole process only takes a few minutes of your time and after providing some basic information, you’ll be shown all the best energy deals in your area and exactly how much you can save by switching to each.
Energy bills continue to rise
Throughout 2021, energy bills have risen substantially. Back at the beginning of April, Ofgem increased the price cap by £96. However, recently, the energy regulator announced that a second rise will hit customers in October. This time, the rise will be £139.
These price cap rises can be attributed to a number of factors, such as rising wholesale prices, increased demand, a lower supply of gas imports because of the pandemic and extended cold spells last winter and spring.
As a result, with fixed-term deals now coming to an end and prices rising, you should check the status of your current deal and ensure that you take action if it’s due to expire. After all, the research by Uswitch has revealed that the cheapest deal on the market is £198 cheaper than the new price cap, at £1,079. It’s from Utility Point and is fixed for 18 months.
The consequences of not switching to a new plan can be huge. If your household is affected and you fail to switch, then you could end up spending almost £400 more on your energy bills in comparison to someone who switches and locks in a great new deal.
Due to this, you should always see the price cap as a backstop and you should never use it to limit the amount you spend on your energy bills. Instead, you should either run an online price comparison or you should contact your supplier directly and ask to be switched to a better fixed-term deal.
As an added bonus, when you’re switching tariff or provider, you can even choose to switch to green energy and do your bit to help the planet while you save on your bills.
Find the best energy deal for your home
TechRadar has partnered with MoneySupermarket to help you find the best energy deals in your area. Our energy comparison tool takes less than five minutes to use, and could save you hundreds on your energy bills. Save money now