Expiring fixed rate deals could cost energy customers £200
Energy customers coming to the end of a fixed rate deal need to compare tariffs to avoid imminent bill hikes warns MoneySuperMarket.com.
The comparison site has identified 22 energy tariffs from the biggest suppliers that will expire before the end of April 2014. Customers on these products face the prospect of an automatic price hike of up to £210 on some tariffs if they don’t act soon to switch to a better priced deal.
When a fixed rate energy deal comes to an end, providers typically roll customers on to an alternative variable product; more often than not this is the energy supplier’s standard and most expensive deal. With this in mind, analysis of tariffs that are about to expire has revealed that customers could leave themselves severely out of pocket if they don’t act and move to a better deal. For example, customers who signed up to EDF Energy’s popular Blue+ Price Promise April 2014 tariff could see their price rocket up by around £210 per year when this deal ends and they are moved to EDF’s standard tariff. With no exit fee attached to this tariff, there is no need to wait until the fixed term ends – they can apply for a new product now and ensure they avoid spending any time paying EDF’s higher standard prices.
This isn’t the case for everyone though. Many will face a penalty if they leave their current energy deal before the fixed term ends so they need to time their move carefully as exit fees can be as much as £70. Customers on expiring tariffs with exit penalties should bear in mind the typical switch time of six weeks and count back from their end date to know when the sweet spot to switch is.
Clare Francis, editor in chief at MoneySuperMarket, said: “Fixed deals have been a popular choice with people looking to protect themselves from the price hikes that have become common place in recent years. With so many fixed tariffs ending over the next few months, bill payers really need to be vigilant and make a savvy switch to avoid a big payment shock.”
Consumers on fixed deals that are coming to an end could save as much as £176 by switching to the best priced tariffs.
Clare Francis continued: “As we head towards spring and summer, energy bills won’t be front of mind for many people because we’ll hopefully be turning the heating off. But failing to act when their existing deal ends will mean they’ll be paying more than they need for the gas and electricity they do use. And the additional risk is they’ll forget to switch in time for the cold winter months when their usage will soar again. It’s so quick and easy to switch your energy provider – you can find and apply for the cheapest deal in under 10 minutes –soit is well worth getting into the habit of changing whenever your current deal ends. It might not even mean switching provider as you may find your existing provider is offering the cheapest tariff.”