£250 hike in bills for millions as fixed price energy deals come to an end

By Elliot Wright, 17th February 2010

Customers on fixed priced energy plans could see their bills go up by £250 as their deals come to an end at the end in the coming months.

Six fixed or capped priced deals designed to safeguard people from energy price rises are coming to an end in March 2010. As a result, if people aren't vigilant they could see their energy bills rocket, warns online price comparison and switching service uSwitch.com.

Four of the six plans coming to an end allow customers to pay by cash or cheque with the average bill coming in at £1,093 a year. In contrast, the same customer moving onto a standard plan today could expect to be paying £1,232 a year - £139 more.

These plans began in 2006 when the average household energy bill was just £735 per year while today's bills are some £497, or 68%, more expensive.

4.6m UK households are currently on fixed or capped energy plans and suppliers are expected to be contacting householders on plans that are due to end to inform them of their options. But with British Gas recently cutting its standard prices and other suppliers expected to follow suit, fixing prices again straightaway might not be the best option.

Likewise, moving to an expensive standard plan could cost customers dear. To make sure that they make the right move, consumers are being advised to check the market and shop around for their next deal instead.

In 2006 the average household energy bill was just £735 per year while today's bills are some £497, or 68%, more expensive.

If households do their energy homework they could actually come out of a fixed deal and see their energy costs fall. But, if they don't, they could be facing a substantial price hike instead.

Thomas Lyon, energy expert at uSwitch.com, says: "With energy prices so high consumers face an important decision and we would urge them to take the time to shop around.

"For those who prefer the security of a fixed price plan our advice is to see what your current supplier can offer, but then compare with other fixed price plans in the market to find the most competitive deal. It's also important to be aware that most fixed or capped plans carry an early exit fee - consumers should always check the small print carefully and ensure that an energy plan meets their needs before signing on the dotted line."

Claims Financial