Households risk a £221 bill hike if they fail to switch to a fixed energy tariff in the next 72 hours, experts warn. The price cap rise will see households pay 13 per cent more for their bills from July 1.
Expert Warning: Act Now to Avoid Higher Costs
Ben Gallizzi, an energy expert from the comparison site Uswitch.com, said: "The jump in energy prices might seem easier to bear in summer while heating is off – but a graver concern is this setting the baseline for a further increase in October."
He added: "If you haven’t switched in a while, you’re almost certainly on a standard tariff, and you will be impacted. Getting off a standard tariff and locking in a fixed rate deal should be an urgent priority for households."
Understanding Standard Tariffs
A standard tariff (or default tariff) refers to an energy supplier’s basic, variable rate plan. This means your unit rates can go up or down at any time, usually four times a year to coincide with the energy price cap changes. Customers are automatically rolled on to a supplier’s standard variable rate plan once their previous tariff comes to an end.
If you have never switched energy supplier or tariffs, or haven’t switched in over a year, you are most likely on your supplier’s standard energy plan, which is likely not the cheapest option. The name of your tariff, which should appear on your bills or on your account, will also help you understand whether you’re on a standard tariff.
Fixed Deals Offer Significant Savings
Ben added: "For the millions of households on standard tariffs, this is your one-week warning that your energy rates are rising on 1 July - unless you act now."
"There are many fixed deals available that are cheaper than the price cap, with average savings of over £300 on offer, making it a crucial move. These deals might not be around for long. Take a few minutes to check online to see what deals are available to you."
Households are urged to compare fixed tariffs immediately to avoid the impending £221 increase, which takes effect from July 1.
