Households lose out as fixed energy tariffs far exceed cap

HOMEOWNERS are paying hundreds of pounds more for their energy bills because they are locked into fixed tariffs which far exceed a governmentimposed price cap.

The Government will in the coming weeks set out plans to force energy companies to switch customers on to lower tariffs, protecting millions from paying over the odds.

But research published by Look After My Bills, an auto-switching service, found 65 tariffs with 22 different suppliers are offering fixed-price deals that are more expensive than the current price. The cheapest deals on the market cost under £950, which means people on these fixed-price deals will be paying as much as £250 more per year. Of the Big Six energy companies, ScottishPower has the most fixed-price deals above the current price cap, with 18 tariffs above the cap.

Ofgem, the industry regulator, earlier this month announced that energy prices for millions of households will rise from April after it increased the price cap by £96 for default tariff customers.

An Ofgem spokesman said: “The price cap protects around 11 million households on default tariffs, and around 4 million households who use pre-payment meters.

“Fixed tariffs are generally much cheaper than default tariffs and priced below the level of the cap, which will increase on April 1 mainly due to higher wholesale energy prices.”

A business department spokesman said: “We always encourage households to shop around for the cheapest tariffs, but the price cap provides protection for those who don’t.”