Households to see energy bills soar by up to £331 next month as 157 fixed deals come to an end: We reveal the best tariffs you can switch to
- Customers could see their energy bills go up by £331 next month
- Some 157 fixed deals are coming to an end at the end of May
- This means thousands will be moved onto pricier default tariffs automatically
More than 218,000 households could see energy bills rise by as much as £331 with 157 fixed deals coming to an end this month, new research has revealed.
With a number of plans expiring in the next two weeks, customers are reminded to switch their tariff before they are put onto a pricey default deal.
Rolling off fixed term deals onto default tariffs could collectively cost UK households an extra £61million a year, compared to their current energy costs, an average of £280 per home, the data from Compare the Market shows.
Customers on British Gas’ Energy and Boiler Cover May 2021v4 would see the potential biggest rise from £806.26 to £1,138.18 – an increase of £331.92.
Households are encouraged to check if their fixed price energy deal is coming to an end soon
Other tariffs coming to an end include EDF’s Simply Online 1 Year Fix May21v5 with households set to see a rise of £322.54.
Eon’s Fix Online Exclusive v36 is also coming to an end with customer bills set to soar by £322.52 unless they switch.
Failing to keep track of energy tariff expiration dates could land consumers on their supplier’s standard variable tariff, on which they will typically pay a lot more for their gas and electricity than on a fixed option.
The default tariffs are subject to Ofgem’s energy price cap, with the current cap set at £1,138.
It was launched in January 2019 by the watchdog as a way of keeping down the cost for households.
However, many suppliers price to the limit and have been accused of treating the cap as a target.
Peter Earl, head of energy at Compare the Market, said: ‘Each month hundreds of thousands of households risk falling onto a standard variable tariff which means many end up paying more than they should do.
‘Energy companies are the only ones to benefit. The good news is that customers do not have to take these price increases lying down.
‘It takes very little time to put your details in and find a new deal that could potentially save you hundreds of pounds.’
Customers are encouraged to use price comparison sites when their tariff is coming to an end to see if they could get a better energy deal.
By switching supplier or tariff, they could save themselves hundreds of pounds on their bills.
Customers are encouraged to use comparison sites to see if they could save on their bills
Best energy deals on the market
The best value energy tariff currently on the market is with challenger supplier, PFP Energy, on its Green Variable s2 Paperless deal, costing an average of £844.61 a year.
The variable plan is also green making it a good choice for those who are environmentally friendly.
Meanwhile, Neo Energy is offering the second best deal on its NEO 4.1 plan at £858.59. This variable deal, however, is not green which may be a deal breaker for some.
Both PFP Energy and Neo Energy feature twice in the best value deals with PFP also having the third best value deal on its Green Variable s2 Paper Billing offering costing £884.61.
None of the Big Six made the top ten list with challenger providers dominating.
Whilst many of the best deals are also variable plans, this is unusual, as often the best value deals are fixed tariffs.
|Supplier Name||Supplier Tariff Name||Variable or fixed||Annual Bill||Green?|
|1||PFP Energy||Green Variable s2 Paperless||Variable||844.61||YES|
|2||Neo Energy||NEO 4.1||Variable||858.59||NO|
|3||PFP Energy||Green Variable s2 Paper Billing||Variable||884.61||YES|
|4||Outfox the Market||Spring 21 Variable||Variable||908.49||YES|
|5||People’s Energy||East Lothian Fixed Tariff March 21||Fixed||909.92||YES|
|6||Utility Point||Just Up 21 Wk06 v2||Fixed||920.01||YES|
|7||Neo Energy||NEO 4.0||Variable||925.36||NO|
|9||GOTO Energy||Standard Variable||Variable||932.28||YES|
|10||London Power||my london fixed yearly plan 12m fixed march 2021v3||Fixed||937.46||YES|
|Source: Compare the Market (Prices correct as of 18 May 2021)|