Average fixed energy tariff has increased by 20%

British bill payers beware; research from moneysupermarket.com reveals the average cost of energy deals has increased by £81 per year (eight per cent), across the board since May this year. Fixed energy products have seen the biggest changes with withdrawals and price changes meaning the average cost of a fixed tariff 20 per cent higher now than in May.

Additionally, online tariffs have also risen sharply recently, with a six per cent increase since May 2010. Standard tariffs have seen the least market movements, only increasing by one per cent but across all energy product types the story is the same, prices have increased and the trend looks set to continue.

These changes mean that despite tariffs decreasing in price by 12 per cent, or £121 on average, between August 2009 and May 2010, they have crept up again by eight per cent (£81) on average in the last four months. The cheapest remaining energy deals currently on the market are online dual fuel offerings: npower's Sign Online 19 tariff is the best value at £889.73 followed by E.ON's Save Online v3 tariff at £894.43 a year.

Scott Byrom, energy manager at moneysupermarket.com, said: "Providers have been pulling their best energy deals from the market which means the average bill has risen sharply in the last few months alone. New customers are left with no choice but to take on a more expensive deal.

"With wholesale energy prices hitting a year-high in July, I fully expect more leading deals to be withdrawn for new customers, and replacement tariffs to continue the upward trend we're seeing to the cost of energy.  Taking these factors into account, it is safe to say that the only way is up for energy bills in the next few months; bad news for bill payers as we approach the colder winter months when on average 40 per cent of people's annual energy consumption is used between December and February. 

"Customers looking to avoid the impact of any increases should fix now. The best fixed deal currently on the market is OVO Energy's New Energy Fixed tariff at £993.01. Swapping supplier can take up to six weeks, meaning those who want to make the highest savings through cheaper winter bills should look to have the new deal in place by 19th October 2010."