Households may face bill increases of £266 a year as deals from British Gas, E.ON, EDF Energy and Scottish Power finish
Thousands of householders face gas and electricity price rises of up to 30% in the next fortnight as a raft of cheap energy deals come to an end.
Eight popular tariffs from British Gas, E.ON, EDF Energy and Scottish Power that consumers signed up to in the past 18 months are due to expire, according to comparison website TheEnergyShop.com. The thousands of people who are on those deals will end up on their energy suppliers’ standard tariff, resulting in bill increases of up to £266 a year.
The steepest rise will be for those on Scottish Power’s Direct Oct 2012 tariff, which expires on 30 September. Households could see their bills rise from a typical £904 a year to £1,170. Two of EDF Energy’s tariffs, Online Saver 10 and 12, also end on 30 September, adding £189 and £164 respectively to a typical users household energy bill.
“The next month will see a lot of very cheap legacy tariffs coming to an end,” Joe Malinowski of TheEnergyShop said. “We are advising that people now go for a fixed-price energy deal as – with across the board price increases expected shortly – a variable deal exposes you to higher bills.”
In August SSE announced price rises of 9% for gas and electricity that will take effect from 15 October. More than 8 million customers will be affected, with those on SSE’s average standard dual-fuel tariff seeing annual increases of more than £100 from £1,172 to £1,274. Although E.ON has said it will not increase bills for customers before the end of 2012, industry experts have suggested SSE’s action will pave the way for other suppliers to increase their prices.
Scott Byrom, energy expert at MoneySupermarket.com, said at the time of the SSE price announcement: “I expect a domino effect in the market as the other members of the ‘big six’ providers follow suit to hike prices.”
Currently, the cheapest energy tariff on the market comes from Sainsbury’s at a typical £1,067 a year. However, for those wanting to insure against higher bills in the next 12 months OVO Energy has the cheapest fixed-price deal at a typical £1,088 a month. Anyone wanting to leave the deal within a year of signing up will be hit by a £30-per-fuel exit fee. Scottish Power has the next cheapest fix at £1,099 a year with no exit penalties.
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