Millions of UK households are 'sleepwalking towards higher energy costs', according to a price comparison service. Two-thirds of the 12 million homes on standard tariffs are unaware that their energy rates are likely to increase by 12% in July, new research reveals.
Ofgem will officially announce the three-month price cap for July in late May, with costs expected to rise by £202 for the vast majority of households in England, Wales and Scotland. An average home could see bills increase from £1,641 to £1,843, with prices likely to remain high throughout autumn and winter.
Worrying Lack of Awareness
The research by Uswitch found that 66% of standard tariff holders are not aware of the impending price rise. The same percentage said a 10% price hike would negatively affect their household budget. One in ten homes on standard tariffs said they would need to use savings to pay energy bills, while one in six would cut back on essential spending such as food and transport.
Expert Advice: Switch to Fixed Tariffs
Energy expert Ben Gallizzi has urged Brits to lock in a cheaper fixed tariff, which could save a typical home £233 when the July cap is enforced. 'More than 10 million households on standard tariffs are sleepwalking towards energy bill hikes, with their prices predicted to increase 12% in July,' he said. 'More worryingly, almost half of those on standard tariffs mistakenly believe they are on the best deal, despite the fact that the average home could save hundreds of pounds with a fixed deal.'
Two-thirds of households say a 10% increase in their energy bills would hit their finances, so now is the time to act to protect yourself from higher costs. 'Take a moment to check online to see what deals are available to you. The cheapest fixed deals available at the moment are 13% less than the predicted July price cap, so we urge households to lock in lower rates while they are available,' Gallizzi added.
