Half a million face hike in energy bills as fixed tariffs end

UP TO half a million households will see their fixed price energy deals come to an end this month leaving consumers potentially facing price rises of £400 annually.

It is understood 42 separate fixed price dual fuel energy deals will stop at the end of September – more than twice as many as in the same month last year.

The increase is partly as a result of regulators lifting the restriction which saw companies limited in the number of separate tariffs they are allowed to offer. David Cameron’s Government had i nsisted t he number of tariffs should be cut to avoid confusing consumers.

Now, unless consumers switch to new fixed price deals they could see their bills rocketing, warned Mark Todd, founder of price com- parison firm energyhelpline. ‘ In early 2016, wholesale energy would be the cheapest it had been since 2007. However, it would rise 40 per cent by October 2017. A year ago, suppliers took advantage of the low costs, and the fact that many may switch in anticipation of the colder months, by offering an unusually large number of tariffs,’ he said.

‘But now a year later, those tariffs are coming to an end, which causes the 42 tariff endings across 14 suppliers. Their customers will automatically be moved on to the more expensive standard rates.

‘The potential increases could go up to an eye-watering £409 annually, making it worth the effort of spending a few minutes switching to ensure you get the best new cheap deal to keep you saving.’

Among the deals which are coming to an end is one from Co-op Energy for an average cost of £770 compared with the company’s standard tariff of £1,179 while EDF Energy has a fixed price deal with an average price of £965 coming to an end while its standard tariff is £1,160.

Prime Minister Theresa May promised before the election to cut energy bills by £100 for 17 million households with a price cap. She criticised the energy market and said it was not working as it should.

But now the Government has urged energy regulator Ofgem to examine the issue using its existing powers to cut prices and talk of an extensive price cap has receded.