HOUSEHOLDS FACE AVERAGE ENERGY PRICE HIKES OF MORE THAN £280 AS 72 FIXED TARIFFS END

  • An estimated 274,000 customers will be automatically moved onto standard variable tariffs in October, November and December 2017
  • Total cost to consumers could be over £75 million nationwide
  • Tariffs ending in October prove particularly costly as customers face average increase of £331

October 2017 – More than 250,000 households will be switched onto more expensive ‘default’ tariffs in the coming months unless they switch providers as 72 fixed energy tariffs come to an end in the last three months of the year, according to new research by comparethemarket.com.

Analysis of the fixed tariffs ending in October, November and December of this year, found that the average increase to energy bills is expected to be £287 per household. comparethemarket.com’s data finds that if customers do not switch tariffs when their fixed tariff ends energy companies could benefit from up to a £75 million “inertia windfall”.

Month

Est. number of customers affected

Total potential cost to consumers

Average increase

Number of tariffs ending

October

138,610

£45,994,111

£331.82

25

November

63,860

£19,422,940

£304.15

15

December

71,950

£13,409,074

£186.37

32

Total

274,420

£78,826,125

£287.25

72

Customers with a fixed tariff ending in October face the biggest average rise with bills expected to go up by £331 over the year. The fixed tariffs ending in October also impact the highest number of customers, with 138,000 households expected to be impacted. 

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Peter Earl

Head of Energy

comparethemarket.com

“These findings clearly demonstrate how important it is to shop around for your energy provider. Households, particularly those who are more vulnerable, simply cannot afford a £280 hike in their energy bills.  A price cap is expected to come into force in the near future, but it won’t be here in time for winter and the savings that consumers can expect to make from switching provider are far greater than those promised by a Government cap. Ensuring you are on a competitive fixed rate tariff is one of the most effective ways to ensure your bills remain as low as possible.”