Households need to act swiftly with energy price rises imminent
With energy price hike announcements expected imminently, MoneySuperMarket is urging households that are still paying their provider's standard prices to make the switch now to beat any increases and take advantage of the best tariffs while they are still available.
Calculations by the comparison site show if the widely expected price hikes by the "Big Six" energy companies average the same as last year, 12.6 million standard energy customers would be hit by a massive £1.4 billion increase to the cost of their annual bills. These households are already paying £2 billion a year more than they need to for their gas and electricity, having not switched following the last round of price hikes at the end of 2012.
MoneySuperMarket is urging those on standard price plans to act now and switch to a fixed rate energy tariff to protect themselves from future increases and also cut their bills. Waiting until the first price hike announcement could result in them missing out on some of the most competitive products currently available. There are a number of fixed rate tariffs on offer, including longer term fixes, some of which guarantee prices for the next four winters.
Clare Francis, Consumer Expert at MoneySuperMarket said: "The energy companies have said loud and clear that price hikes are on their way. The only unknown factor is exactly when these will happen, although it is likely we will see announcements in the next few weeks. It's disheartening that so many households are already paying a record amount for their gas and electricity and failing to take advantage of the savings available - particularly as switching energy provider is a really simple thing to do. It literally only takes five minutes if you use a comparison site and have a bill to hand.
"The 12.6 million households paying their provider's standard prices are already paying £2 billion a year more than they need to for their gas and electricity and this will rise further when prices go up again, hitting them hard in the pocket, at a time when they least need it. The time to act is now. Don't wait for the first price increase announcement to be made because by that time some of the tariffs currently available could have been withdrawn from sale and replaced with more expensive deals.
"A fixed rate tariff is the best option as this will ensure that the amount you pay for your gas and electricity doesn't change for a set period of time, giving protection from future price rises. The cheapest fixed deal available is Fix & Save from M&S Energy. Those currently paying their provider's standard prices could knock an average of £204 off their annual bill by switching to this tariff. However, the M&S product is only fixed until September 2014, giving protection from price rises for just one winter, so a longer term deal could prove a shrewder option. An alternative fixed deal is npower's Price Protector March 2017 which will shield customers from price rises for the next four winters, although in the short term it costs more than other deals on the market.
"There are other ways households can be proactive in cutting their energy bills. As well as switching to the best deal, making simple changes around the home to cut consumption can result in significant savings over the year. As we're moving towards the colder and darker autumn and winter seasons, energy use naturally increases and some people may find that this quickly becomes unaffordable, so now really is the time fight back against rising bills."