Customers who have fixed energy deals soon ending should switch tariffs or they could face a jump in their utility bills of more than £300 a year, experts warn.
More than 4m people have some sort of price guarantee on their energy costs, according to research by Ofgem, the energy watchdog. Fixed deals were popular last years as customers locked into deals to protect themselves from sharp rises of 42 per cent in energy prices.
But many of those fixed deals are about to expire and some have already expired. The NPower One deal, for example, comes to an end on Friday, which no means customers who revert to the standard package will now have to pay an extra £231 a year for their energy.
According to moneysupermarket.com, some 70 per cent of customers switched to fixed energy deals in July 2008 to save money against sharply rising energy prices.
“Fixed rate deals were in vogue last year; 70 per cent of our customers swapped provider in July 2008 to choose a ”fixed” energy tariff saving themselves an average of £134.50 a year against a back drop of sharply rising prices,” said Scott Byrom, utilities manager at moneysupermarket.com.
He warned that NPower One customers could see their bills jump by £147 a year if they revert to a standard deal while Scottish Power’s Fixed Price 2009 deal ends on August 31; these customers could see their bills rise by £135 a year.
It’s not just those who are coming to the end of a fixed term product who could save by switching their energy deal. If you are currently paying your provider’s standard tariff, you could cut your annual bill by an average of £250 by moving on to EDF’s Online V 5.
The EDF product is only available for a limited time however, so you’ll need to act quickly if you want to benefit. It’s also worth noting that while this is the cheapest deal for the average household, another product may offer better value for your circumstances - it all depends on where you live and how much gas and electricity you consume.
“Bill payers who fixed their utility bills this time last year should now be scouring the market for the next best alternative to avoid paying over the odds. Timing is crucial when proactively looking for a new energy product.” Byrom added.
“With 10 more fixed deals set to end before the year is out, my advice to customers who have fixed deals expiring soon is to look to swap at least four weeks before the termination date of the deal to avoid moving to a more expensive tariff.”
Which Switch, who offer customers free expert advice say simple steps, like paying by direct debit, on a monthly basis or through an online account, may have a big impact on bills.
“Now that all of the major energy companies have cut their prices, this could be a great opportunity to switch suppliers or tariffs,” said Alison Morrison, Which Switch expert. “It seems strange to think about your heating bills in summer, but this is a decision that could benefit customers all year round.”
Customers who are considering their energy bills can assess the options available with Which? Switch at www.which.co.uk/switch and for the month of August, those who decide to switch, could win their quoted annual energy savings. People that changed supplier or tariff using Which? Switch saved £257 on average.
