Capped price deals come to an end

Over the coming weeks many capped price energy deals come to end, leaving householders paying up to 51% more for their energy.

As energy bills rocketed over the last three years, most suppliers launched capped and fixed priced tariffs, designed to attract new customers and to offer protection from price increases.

However, many capped deals are about to come to an end, which means an estimated 500,000 customers will automatically be reverted to their supplier’s standard tariff. This will not only leave customers paying more than they currently pay for their energy, but also more than they need to as cheaper, alternative tariffs are available.

Karen Darby, founder of SimplySwitch.com comments: “Customers on a capped deal that comes to an end will effectively be subjected to a delayed price increase – they will automatically revert to a standard tariff and they could be left paying over £300 more a year for their energy.

“Four of the major energy suppliers have so far dropped their prices, but despite this, anyone reverted to their energy company’s standard tariff will not only be left paying more for their energy than they currently do, but they could save even more by switching to a better value deal. Consumers need to be proactive – anyone who fails to act will see a huge jump in their energy prices.

“In today’s market of falling prices, most capped deals offer poor value for money. We predict that energy prices will fall further and advise consumers to switch to the best deal currently available rather than signing up to an expensive capped product.”