As fixed-price energy tariffs end, gas and electricity bills could rise by an average of £333 per year. Comparethemarket.com estimates that 600,000 households will be switched to standard variable tariffs during this quarter, unless they actively look for better energy deals.
Data from Comparethemarket shows that 30 fixed-tariff deals expired in April, 18 will end in May and a further 22 will finish in June. This means that 70 fixed-tariff energy deals will finish during Q2 2017, affecting 600,000 energy customers.
Those customers face an average increase in energy costs of £333, which represents almost a £200m “inertia windfall” for energy companies.
The majority of the tariffs ending are from smaller energy providers, with only 23 coming from the Big Six. However, this still accounts for almost 200,000 customers.
With 17 million energy customers on standard variable tariffs, UK householders seem reluctant to switch energy supplier, which has prompted Theresa May to announce a cap on energy bills during her election campaign.
Complacency among energy customers is costing them dearly says Peter Earl, Head of Energy, comparethemarket.com:
“The cost of not actively monitoring your energy bills is clearer than ever, with energy companies potentially enjoying close to a £200 million inertia windfall from customers who don’t choose to switch.
“A £333 increase in annual energy bills could be devastating to so many families across the UK. However, the good news is that this can be avoided – by switching back on to a competitively priced fixed tariff which best suits your needs.”
Energy suppliers are exploiting their customers failure to look for better deals and then switch to save money. Consumers need to understand that it is actually quick and easy to switch energy company.
The Government estimates this complacency is costing UK households £1.4 billion each year in needless costs.
“The Big Six have been exploiting customers’ loyalty for too long and it has to end.”, said Ed Kamm, UK MD, First Utility recently.