End of fixed energy plans 'could fuel price surge'

By myfinances.co.uk staff

Millions of consumers could be hit by a surge in their energy bills when a number of fixed or capped price deals come to an end next month, comparison service uSwitch.com has warned.

The company said six fixed tariffs from suppliers including British Gas, EDF Energy, Scottish Power and E.ON are due to expire in March.

Some date back to 2006, when the average household energy bill stood at £735 a year. It is now 68 per cent, or £497, higher.

Of the six plans ending next month, four allow customers to pay by cash or cheque, with the typical annual bill coming to £1,093.

Consumers switching to an equivalent standard energy plans could expect to pay an average of £1,232 a year - 13 per cent, or £139, more, uSwitch.com said.

However, the other two plans - which were introduced in 2008 and 2009 - are direct debit only and typically cost £1,164 a year, whereas the average annual bill for a standard direct debit tariff is £1,129.

Thomas Lyon of uSwitch.com said: "With energy prices so high, consumers face an important decision and we would urge them to take the time to shop around."

Earlier this month, the comparison site said British Gas had become the cheapest supplier for standard gas and electricity.