Consumers urged to check fixed rate tariffs
By myfinances.co.uk staff
Millions of homeowners could be paying "way over the odds" for their energy because they signed up to a fixed rate deal at the top of the market, it has been claimed.
Comparison service energyhelpline.com said as many as three million people are believed to have made the switch to a fixed or capped price plan in late 2008, when the cost of gas and electricity was "skyrocketing".
However, with prices now much lower, some customers have been left paying up to 60% above the cheapest deals for their energy, it added.
According to the site's figures, the most expensive fixed rate plan costs around £532 a year more than the lowest priced tariffs.
Furthermore, the typical fixed rate deal is approximately £250 a year more expensive than the average online dual fuel contracts.
"The advice is simple if you are on an old fixed rate tariff then you should do a price comparison and switch," the site said.
Audrey Gallacher of Consumer Focus told the BBC that customers on fixed price deals can leave the plan, but they "should do their sums" first to check that the amount they will save will offset any potential termination charge.
Comments
Newsletter sign up