Energy News

Energy price warning as fixed deals end

If you’re on a fixed-rate energy tariff that’s coming to an end soon, you could face a £250 gas and electricity price shock.

Energy customers who signed up to fixed rate energy plan could get bills £258 higher as the deals end.

Fixed rate deals from E.ON, British Gas, Scottish Power and EDF Energy, from as far back at 2006 in some cases, are coming to an end – leaving unprepared customers on higher rates.

Some 4.6 million homes are on fixed rate deals – that shield customers from gas and electricity price increases during the term.

In 2006 the average annual energy bill stood £735 per year, but they have risen 68% in the last four years to £1,232.

E.ON has three fixed rate deals that come to a close in March – with the cheapest deal dating back to July 2006 at £974.

British Gas and EDF Energy both have deals from February 2009 coming to a close next month, while Scottish Power’s November 2008 fix closes at the end of March.

Thomas Lyon, energy expert at uSwitch.com, which carried out the research, said: “Many of the households about to lose the protection of a fixed price energy plan are coming back onto a market that will look very different from a few years ago.

“With energy prices so high consumers face an important decision and we would urge them to take the time to shop around.”

He added the best option for homes coming off a fixed price deal would be a new online price plan, which can be around £300 a year cheaper than standard tariffs and also £217 cheaper than the average fixed plan about to expire.

Mr Lyon said: “An online plan could be a good option for those who want to enjoy low prices today while having the flexibility to move onto a fixed price plan in the future if it looks like prices are going to go up.”

Chris Eagle, commercial manager at Energychoices.co.uk, said: “Fixed rate deals are a good idea if you are looking for stability of knowing energy bills will hold firm and there will be no unexpected shocks.

“Opting for an online dual fuel deal and paying by direct debit is the best option, especially for those who are still buying gas and electricity from their old electricity board and British Gas separately and those who still pay quarterly.”