Energy bills: Households set for costs to rise by hundreds of pounds

More than a million households could see a typical rise of £244 to their annual energy bills at the end of April, new research has revealed.

Some 56 fixed deals finish this month, with more than 1.3million homes facing a £324million rise to bills in total, according to data from Uswitch.

It said the potential increased cost is the highest since July 2019.

When fixed deals come to an end customers are automatically moved onto a Standard Variable Tariff, which are typically among the worst value deals on the market.

The change will mean some customers could even see their bills rise by as much as £319.

Energy bills have risen since Ofgem increased the price cap by £96 at the beginning of April, impacting the estimated 11million people on standard tariffs.

The price cap was launched in January 2019 by watchdog, Ofgem, as a way of keeping down the cost for households.

However, it has now been increased to £1,138 with the hike of £96 including an additional £23.69 energy suppliers can charge a year to help it cover for coronavirus-related costs.

With time running out until the end of the month when the 56 fixed plans come to an end, customers are urged to check the status of their current energy deal and take action now if their deal is due to expire.

The savings could be large as there is currently a £234 gap between the cost of the best deals on the market and the £1,138 default energy price cap.

Sarah Broomfield, energy expert at Uswitch, said: ‘The cost of not switching to a new plan when your deal comes to an end can be huge, and consumers could soon be spending as much as £319 more a year on their energy if they don’t take action.

‘More than a million households will be on the receiving end of a shock increase in their energy bills from next month if they don’t act quickly.

‘The good news is that it is simple to switch suppliers, and the process can take as little as ten minutes.’

Customers are encouraged to switch to fixed deals if they are stuck on pricey default tariffs

Best deals on the market  

Customers who will be moved onto default tariffs and those already on the pricey deals are encouraged to switch to a fixed offering to save money.  

The cheapest fixed deal currently on the market is the HUB Smart Choice Tariff 12 April 22 v1 tariff from HUB Energy at £903 fixed for 12 months — £234 cheaper than the default price cap.

The second cheapest offer is with challenger supplier, Utility Point, on its Just Up 21 12M Fixed Wk09 tariff. 

Customers will pay an average of £919.12 and benefit from it being a green deal.

Avro Energy has the third best offer on its Simple and Super12M deal costing £920.26 a month.

Eon is the only Big Six supplier to make the list with its Fix 1 Year Exclusive Spring 2021 offer costing £984.49 a year.

Meanwhile, new provider, British Gas Evolve, Centrica’s cheaper alternative, has made the list with its Energy Plus Home Protection v11 fixed tariff at £995.02 a year.