188,000 households face £192 hike in energy bills in the first three months of the year

188,000 households face £192 hike in energy bills in the first three months of the year

• 105 fixed rate tariffs ending in the first three months of 2018, affecting 188,000 customers
• Total cost to consumers around the country could be £36 million if people do not switch
• Average increase in energy bills expected to be £192 per household

15 January 2018 – Around 188,000 households will be automatically switched onto more expensive ‘default’ tariffs in the first three months of 2018. In January, February and March 2018, there are 105 fixed energy tariffs coming to an end, according to new research by comparethemarket.com, with a total cost of £36 million hitting those consumers affected.

Analysis of the fixed tariffs ending in these months found that the average increase to energy bills is expected to be £192 per household. comparethemarket.com’s data reveals that if customers do not switch tariffs when their fixed tariff ends energy companies are set to benefit potentially from a £36 million “inertia windfall”.

Month

Total cost to consumers

Est. number of customers affected

Average increase

Number of tariffs ending

January

£5,881,478

31,753

£185

28

February

£19,201,132

96,107

£200

31

March

£11,048,563

60,387

£183

46

Total

£36,131,172

188,247

£192

105

The biggest hikes in energy costs will impact households with tariffs ending in February, where the average annual increase in energy costs will be £200 if they do nothing. February is also the month where the highest number of customers are affected, with 96,000 households expected to move on to the more expensive ‘default’ tariffs if they do not switch.

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Peter Earl

Head of Energy

comparethemarket.com

“The message from these statistics is clear – ignore your energy correspondence at your peril. When fixed tariffs are coming to an end it is essential to engage with your supplier, shop around and switch onto the best deal to avoid being rolled onto these expensive default tariffs. People mustn’t allow themselves to fall victim to doing nothing, as they’ll play into the hands of energy companies and pay the price in the form of higher energy costs.
“A £200 hike in energy costs could be highly damaging to the finances of many households and is easily avoidable. Despite continued talk of a price cap and initiatives such as the Winter Fuel Allowance, ensuring that you are on a competitively priced, fixed rate tariff remains the most effective way to keep energy bills as low as possible.”