Energy News

Brits face energy price increase

Wednesday 27 April, 2011

By Martin Fagan - news@consumerchoices.co.uk

Energy customers risk £200 bill hikes when their cheap deals end in May & June.

Millions of Brits enjoying cheap fixed-price energy are in for a shock as a raft of deals expire in the coming weeks, pushing bills up by an average of £227 a year.

Seven low-cost energy plans dating back to 2009 will end in May and June and customers moving onto their supplier's standard plan could expect a 24% increase in their bills, according to new research.

Around seven million UK households are currently on price guarantee plans but there are fears that the current instability in Libya and the crisis in Japan could increase UK household energy prices, said uSwitch, which carried out the research. Many Brits may now be tempted to sign up to a new fixed price plan, it added.

"Fixed plans are definitely right for some, but they do carry a premium,” said Thomas Lyon, energy expert at uSwitch.

“The average fixed-price plan currently available costs £1,040 a year - £102 a year more than the average online plan. Online energy plans consistently offer the lowest prices, at around £200 a year cheaper than standard tariffs.”

According to uSwitch, the cheapest online energy plan on the market - British Gas WebSaver 6 - costs £895 a year, £23 less than the average plan set to end in the coming weeks.

The comparison service says an online plan is a good option for consumers seeking low prices today while having the flexibility to move to a fixed price plan should prices increase in the future.

"For those who prefer the security of a fixed-price plan, our advice is to see what your current supplier can offer but then compare with other fixed-price plans to find the most competitive deal,” advised Lyon.

“It's also important to be aware that most fixed or capped plans carry an early exit fee - always check the small print before signing on the dotted line,” he added.