418,000 households issued £259 energy bill ‘shock’ alert | Personal Finance | Finance

Nearly 418,000 households risk an “energy bill shock” this spring as fixed-rate deals end, a new analysis warns. According to comparison site Uswitch, around 79 fixed tariffs with 12-month terms expire in May, potentially leaving households facing an average increase of £259 if moved to their supplier’s standard variable tariff.

Unless customers switch to a new deal, they will automatically roll onto these standard tariffs, which are often among the most expensive on the market as they are tied to the energy price cap. Elise Melville, energy expert at Uswitch.com, comments: “Households who signed up for a fixed energy tariff last spring should get a new deal as soon as possible, as they could save significant sums compared with a standard tariff.”

Fixed tariffs from a range of suppliers – including British Gas, EDF, OVO, E.ON, Octopus Energy, and several smaller firms – are due to end in the coming weeks.

According to Uswitch, if all households coming off fixed tariffs switched to the cheapest available deal, they could collectively save around £108million.

With the average price of fixed energy deals expected to rise, households may have only a short window to lock in these larger savings. Fixing at a rate below the energy price cap offers protection against future increases, helping to keep bills more manageable.

Households can also benefit from a helpful but little-known tip, which is that they can switch up to 49 days before their fixed tariff ends without incurring exit fees. This allows consumers to move to a better deal early.

The cheapest fixed deal available this time last year was a 12-month tariff from British Gas, costing £1,654 annually. Households coming off that deal and moving to a standard tariff on May 1 would see their bills rise by £195 a year, according to Uswitch. 

Households are being urged to check when their current fixed deal ends and switch to a new fixed tariff to avoid a costly surprise this spring.

Ms Melville said: “Those whose tariff started in April last year need to act now – as they can leave their current tariff up to 49 days before it ends without paying any exit fees.

“When wholesale energy prices rise, the cost of deals on the market usually increases at the same rate. But suppliers are currently fighting to win customers, and this means big savings on offer. It’s unusual for such well-priced deals to be available, and we believe that households may have a relatively short window of opportunity to grab one before they disappear.”

She added: “If you’re on a standard tariff, now is the time to protect yourself from upcoming price rises. Run a comparison to see what deals are available to you.”