Millions of UK households are “sleepwalking towards higher energy costs“, a price comparison service has warned. Two-thirds of the 12 million homes on standard tariffs don’t realise their energy rates are likely to rise by 12% in July, according to new research.
Ofgem will officially announce the three-month price cap for July in late May, with costs expected to rise £202 for the vast majority of households in England, Wales and Scotland.
An average home could see bills increase from £1,641 to £1,843, with prices likely to stay high throughout the autumn and winter. Worryingly, 66% of standard tariff holders told price comparison firm Uswitch that they aren’t aware of an impending price rise, and the same percentage said a 10% price hike would have a negative impact on their household budget.
One in 10 homes with standard tariffs said they would need to use savings to pay their energy bills, while a sixth would cut back on essential spending, such as food and transport.
Energy expert Ben Gallizzi has urged Brits unsure about the upcoming price increase to lock in a cheaper fixed tariff, which could save a typical home £233 when the July cap is enforced.
“More than 10 million households on standard tariffs are sleepwalking towards energy bill hikes, with their prices predicted to increase 12% in July,” he said.
“More worryingly, almost half of those on standard tariffs mistakenly believe that they’re on the best deal, despite the fact that the average home could save hundreds of pounds with a fixed deal.
“Two-thirds of households even say a 10% increase in their energy bills would hit their finances, so now’s the time to act to protect yourself from higher costs.
“Take a moment to check online to see what deals are available to you. The cheapest fixed deals available at the moment are 13% less than the predicted July price cap, so we urge households to lock in lower rates while their available.”