EDF Energy customers go from a fix to a pickle

Many EDF Energy customers could be in for a huge bill shock when they lose the protection of a fixed price plan that has kept their household energy prices frozen for up to 18 months, according to data from uSwitch.com.

Although EDF Energy's Fixed S@ver 2 customers paid a £114 premium to fix their prices, this premium soon disappeared as household energy prices soared. In fact, they have saved up to £297 since signing up to the plan while missing out on one round of price hikes.

But, they are about to come back to earth with a bump when their competitive plan ends. From 30th September, they will roll on to EDF Energy's standard plan. With an average annual bill sze of £1,129, they'll be £120 a year worse off.

However, those worried about not being able to keep up with the rising cost of energy could cushion the blow and minimise the increase to their bills by switching to the cheapest plan on the market. At £1,040 a year, First Utility's iSave Fixed V3 plan is £31 more than the plan they were paying, but is £89 less than the plan they would roll on to. It is also a fixed price plan so customers would be protected from any further price increases until 31st December 2013.

For those who would prefer to stay with EDF Energy, there is another option. Its Blue + Price Promise April 2014 plan, at £1,058 a year, will see their bills increase by just £49, but they will be protected from any price increases for the next two winters.

Tom Lyon, energy expert at uSwitch.com, says: "After a round of price rises at the start of last year, some wary consumers rushed to fix. Although there was initially a premium for this peace of mind, this soon disappeared when another round of price hikes struck at the end of the year. By signing up to EDF Energy's plan, consumers were protected from these rises and have been able to enjoy substantial savings on their bills ever since.

"However, those who have enjoyed protection from price rises may be in for a bill shock when the plan comes to an end in 6 weeks. Customers will be automatically rolled on to EDF Energy's standard plan - which will cause their annual bills to shoot up by £120. The good news is that, although these customers won't be able to enjoy equally low bills, they can cushion the blow by moving to one of the cheaper plans on the market. And with the cheapest plan on the market also a fixed price plan, customers can enjoy further protection until 2014."