Time's up for fixed energy tariffs - where to now?

Brits who fixed their utility bills this time last year should now be scouring the market for the next best alternative to avoid paying over the odds, says moneysupermarket.com.

Research from the UK's leading price comparison site reveals customers who have fixed deals expiring soon should look to swap at least four weeks before the termination date of the deal to avoid moving to a more expensive tariff. npower's One Tariff fixed deal comes to an end in a few weeks and these customers could see their bills jump by £231 a year if they revert to a standard deal. Scottish Power's Fixed Price 2009 deal ends on August 31 and these customers could see their bills rise by £340 a year.

Scott Byrom, utilities manager at price comparison site moneysupermarket.com, said: "Fixed rate deals were in vogue last year - 70 per cent of our customers who swapped provider in July 2008 chose a "fixed" energy tariff saving themselves an average of £134.50 a year against a back drop of sharply rising prices, Ofgem research also found that around 4.6 million people are on a price guarantee tariff of some sort. Bill payers need to be aware that the big increases they could face when their current deal ends could wipe out any savings that they made when they fixed last year. Timing is crucial when proactively looking for a new energy product, move off your fixed rate too early and you could face termination fees of up to £75. Move too late and you might find yourself automatically switched to the standard deal or locked into a less attractive fixed deal which isn't the best as we move into autumn and winter weather.

"Fixing again now may not be the best option for the majority of bill payers, falling prices mean online deals offer better value - WebSaver 3 from British Gas for example is the best value tariff at £1,018 a year. Brits suffered unprecedented price hikes last year, 47 per cent for gas and 28 per cent for electricity, and for many ‘fixing' their energy bills was the best way to mitigate these escalating costs. Since then, however, energy prices have fallen and customers who act now can bag decent savings - it takes just seconds to compare energy providers but the savings can run into hundreds of pounds. The whole process is easy and hassle free."