300,000 HOUSEHOLDS FACE AN AVERAGE £66 HIKE IN ENERGY BILLS IN FEBRUARY
- 167 fixed rate tariffs are ending in February 2021, which could affect more than 300,000 customers
- Average increase in energy bills could hit £66 a year per household
- Total cost to households around the country could be nearly £20 million if people do not switch and are rolled onto their supplier’s default tariff for the year
15 February 2021 – More than 300,000 households could be automatically switched onto more expensive ‘default’ energy tariffs in February if they do not switch tariff or provider when their deal comes to an end.
In February, there are 167 fixed energy tariffs coming to an end, according to new research by comparethemarket.com. The average annual cost of a fixed rate energy tariff ending in February is £918. Rolling off fixed term deals onto default tariffs could collectively cost UK households over £20 million a year compared to their current energy costs.
Analysis of the fixed tariffs ending in February finds that the average increase to energy bills could be £66 per household. comparethemarket.com’s data and analysis reveal that if customers do not switch when their fixed tariff ends, energy companies are set to benefit from a huge ‘inertia windfall’.
|Month||Est. number of customers affected||Total cost to consumers||Number of tariffs ending||Average increase|
Households that do not switch before April face an additional increase to their bills. Ofgem, the regulator, recently announced the default energy price cap will change from its current level of £1,042, to £1,138, for dual fuel typical consumption households. The increase of £96 includes an additional £23.69 that the regulator has allowed suppliers to recuperate from unpaid bills from households that have experienced financial difficulty during the pandemic.
Top 10 tariffs available on whole of market (as of 8th February 2021)*:
|Tariff Name||Supplier Name||Fixed/ Variable||Annual Bill|
|1||Home Exclusive v3 (Exclusive)||E.ON||Fixed||£806.56|
|2||NEO 4.1||Neo Energy||Variable||£858.59|
|3||Discover Green 12 months 11v1 (Exclusive)||EDF Energy||Fixed||£877.88|
|5||Better Together Feb22 (Exclusive)||EDF Energy||Fixed||£906.33|
|6||More Together Feb22 (Exclusive)||EDF Energy||Fixed||£906.33|
|7||East Lothian Fixed Loyalty Jan 21||People's Energy||Fixed||£931.81|
|8||Standard Variable||GOTO Energy||Variable||£932.28|
|9||Simple and SuperSwitcher||Avro Energy||Fixed||£945.32|
|10||Just Up 21 Wk05 v4||Utility Point||Fixed||£949.09|
*Prices correct as of 8th February 2021. Prices assume a household with medium annual consumption on a dual-fuel tariff, paying by monthly direct debit.
Peter Earl, Head of Energy at comparethemarket.com, said:
“Time and time again we see people fall into the inertia trap. If you do not switch your supplier at the end of your fixed term it is almost certain that you will end up paying more for your energy than you should be.
“With most people back at home due to coronavirus restrictions, energy consumption is likely to be much higher than usual, with bills increasing as a result. Those in a position to switch should consider doing so, as it will help reduce the overall amount you pay for energy and ensure you are getting better value for money. There is no better way to cut down on the cost of energy than by switching provider.”
In order to help people avoid rolling onto a standard variable tariff (SVT), comparethemarket.com customers can set up a savings alert and let AutoSergei do the legwork. Having signed up once, customers will receive regular alerts when a cheaper tariff becomes available to them, as well as getting a notification when their fixed deal is about to expire.
All data has been secured through comparethemarket.com and data supplied by a third party Energyhelpline. The total number of households is calculated using comparethemarket.com customer numbers and extrapolated using its estimated market share. The cost to consumers is then a multiplication of the number of customers affected and the difference between the fixed tariff and the default tariff of that provider annualised. Please note, this analysis excludes a number of tariffs for which comparethemarket.com cannot currently determine a clear end date.
Notes to editors:
comparethemarket.com was launched in 2006 and has grown rapidly over the past fifteen years to become one of the UK’s leading price comparison websites.
comparethemarket.com provides customers with an easy way to make the right choice for them on a wide range of products including motor, home, life, travel and pet insurance as well as utilities and money products such as credit cards and loans.
comparethemarket.com actively works with its brand partners to help provide great services to customers.
comparethemarket.com is a trading name of Compare The Market Limited. Compare The Market Limited is authorised and regulated by the Financial Conduct Authority for insurance distribution (FRN: 778488) and is registered with the Financial Conduct Authority under the Payment Services Regulations 2017 (FRN: 911617) for the provision of payment services.