Power bills forced up for 100,000

ABOUT 100,000 Iresa customers have been forced on to a more expensive energy tariff and told they cannot switch provider for two or three weeks.

Households were paying as little as £834 a year on Iresa’s cheapest tariff, according to comparison site UK Power.

But after it collapsed last month, Ofgem transferred all customers to Octopus Energy on August 1. Its Flexible Octopus gas and electricity tariff costs the average household £955 a year — up to £121 a year more.

Cheaper deals are available. For example, Breeze and Avro Energy have tariffs costing an annual average of £848 and £861, respectively.

But Iresa customers have been told they must wait until Octopus Energy writes to them to give them permission to switch.

An Octopus Energy spokesman says: ‘Iresa went bust because their prices were all loss-making. Octopus’s standard tariff is just about the cheapest nonloss-making tariff on the market and is classed as “excellent value” by Ofgem.’

The energy watchdog says Iresa customers will be put on Octopus Energy’s cheapest tariff and will not be charged exit fees if they decide to switch.

It warns customers that switching to a new supplier before being given the go-ahead could lead to delays or difficulties getting credit balances refunded.