In June there are 166 fixed-rate energy tariffs coming to an end, which will mean rising energy bills for over 285,000 UK homes. This has been revealed by the latest data from comparison site comparethemarket.com, which also claims that the average bill increase for affected homeowners could be as much as £296.94 a year.
This figure is based on these households failing to take any action when their current tariff comes to an end and them being automatically moved onto their supplier’s more expensive standard default tariffs. Comparethemarket.com has also found that the country’s energy suppliers could be subsequently set for what it calls an ‘inertia windfall’ of £84 million, if bill payers let their tariffs roll over.
The good news though if you are on one of these tariffs, is these rising costs can be avoided by using an energy comparison service – as these can help you find and switch to a better deal.
Households shouldn’t ‘needlessly overspend’ on their energy bills
With the recent increase to Ofgem’s energy price cap, alongside other factors like the pandemic and rising energy demand, standard tariffs often work out notably more costly than most fixed tariffs – but often consumers are unaware of this and miss the chance to find a better deal.
Peter Earl, head of energy at comparethemarket.com, gave his thoughts on the situation and highlighted the benefits of switching: “Rising wholesale energy costs and the knock-on effects of Covid-19 have been pushing up the price of energy for millions of households.
“For households on fixed rate tariffs that are due to expire, they stand to needlessly overspend by a considerable amount on their energy bills if they do not take action and are switched to a standard tariff.
“There are steps people can take to help manage the rising costs, in particular shopping around for a cheaper tariff and switching supplier can save you hundreds of pounds.”
Switching now can help you avoid the price hikes
So to return to a key point, now is the time to either contact your supplier and ask about getting a better deal, or to switch to a new tariff using an energy price comparison service.
With a comparison service, you also get the benefit of being able to see what the best energy deals are near you right now and you can see upfront the savings you can make. In addition to this, you’ll also get to see what options you have and the specific features of the tariffs that are available to you from some of the country’s best energy suppliers.
In addition to this, it’s worth knowing that switching isn’t exclusively beneficial for those whose tariffs are set to end this month – it’s something that can be done by any household quickly and easily.