Energy customers lose the race to cap their tariff

Over half (54%) of householders were unable to beat rate rises after failing to cap their energy tariffs this month, according to a poll by money website Fool.co.uk. The panic of early August drove energy customers in their thousands to seek offers to ward off the crippling price rises some major providers have now implemented.

A little respite

Whilst the poll revealed the staggering number who missed out, 22% were able to cap their rates at pre-rise prices, securing themselves a period of respite. However, the bills they may face at the end of this are uncertain.

Confusing times ahead

The remaining one in four (23%) were unflustered by the hurry to cap. Capped deals may not always be the cheapest in the short term and therefore many people opt for a less pricey but more uncertain alternative.

Finance expert Laura Starkey of Fool.co.uk says that whilst the panic to cap has subsided, things are now more complicated and consumers have three distinct options.

"Those customers who didn't manage to cap their tariff may feel like they've missed the boat, and rises are predicted again in December. However, now the dust has settled on the latest round of tariff announcements a more complex situation has emerged.

"Consumers are faced with three choices. First, they wait and see. But this could be at the risk of missing the last of the good deals. Second, they take a capped tariff now, and feel the security of knowing their outgoings, albeit at higher prices than before. Or thirdly, they get ready to start switching. Finding a new tariff after each price hike may be the best way to keep on top of rising prices by applying a little regular legwork.

"Capping isn't the be-all and end-all, it's just a form of cost control. Even at the lower rates it might not represent a saving for some. Remember the golden rule: as long as a cap is no more than 15%-20% more expensive than your current tariff, it's probably worth going for. A cap isn't supposed to cut your bill right now -- it's intended to prevent it rising in future. If you're looking for a quick fix or a deal that doesn't pass on wholesale price explosions, sad to say, but that ship has sailed."