Millions of UK households are urged to “act now” to avoid the next energy price cap rise in April, which could push annual bills up by around £109.
According to energy regulator Ofgem, around 26 million households are on a Standard Variable Rate (SVR) tariff, which sees electricity and gas rates change in line with the price cap.
On April 1, the energy price cap is expected to increase more than expected, with E.ON predicting a £109 increase to £1,847 for a typical duel-fuel household. This reflects a 6.3% hike from the current annual average of £1,738.
Bills are expected to increase by a further £35 on average in summer, with the July price cap predicted to hit £1,872 – 8% higher than todayʼs rates. Energy comparison site Uswitch.com is urging households on SVR tariffs to make a switch.
Elise Melville, energy expert at comparison site Uswitch.com, warned: “If you haven’t switched energy lately, you are likely to be already paying over the odds, and the coming price hikes will only make things worse.
“Now is the time to take action before the price rises hit. Any deal that is priced at, or below, the current cap level is likely to save you money over the coming year.”
Uswitch is encouraging households to act quickly to lock in a deal at or below the current price cap to protect themselves against the anticipated increases over the coming months.
Those who don’t want to choose a fixed-rate tariff can consider tariffs that track the price cap but “promise” to stay below it by a certain margin.
Current deals include EDF’s Simply Tracker Extra tariff, exclusively available at Uswitch and Confused.com, which pledges a dual-fuel discount of £100 against the price cap over 12 months.
The discount applies to standing charges, so households that use less energy will save more proportionally. However, Billpayers are urged to always check they are happy with the tariff duration and any exit fees before signing up.
Ms Melvile said: “If youʼre not ready to fix, then consider a tariff that guarantees a discount on the price cap, whether it rises or falls. EDF’s tracker promises a saving of £100 against the price cap over 12 months. The discount is applied to dual-fuel standing charges, so this deal is particularly suited to households that use less energy.
“Standard tariffs are now the most expensive way to pay for your energy. The good news is, a better deal is out there for most homes. Right now, there’s a lot of choices available, and it takes just minutes to compare your options and switch to a better deal.”
People can use calculators on comparison and savings sites, such as Money Saving Expert, Uswitch, or Compare The Market, to find out what deal is best for them.
