The government’s price cap will see households paying 13% more for their bills, potentially leaving people hundreds of pounds out of pocket – but there are two steps to avoid the costly hit
Households face the biggest energy price rise since the energy crisis(Image: Getty)
Bill payers could face a £221 bill hike if they fail to switch to a fixed energy tariff in the next seven days.
With just one week left to avoid the shocking energy price rise, the government’s price cap will see households pay 13% more for their bills, leaving them hundreds out of pocket – but it can be avoided if these two steps are taken.
With only days left before households face the biggest energy price rise since the energy crisis, switching to a fixed deal is the single most important thing people can do to protect themselves.
First, households should run a quick comparison to see which fixed tariff is best for their usage – with average savings of £316, it’s a crucial move – and can be done via an energy comparison website. Switching can be done online and once fixed, rates are locked in place.
The tips come from the energy comparison website Uswitch, which has taken to high streets, cities and the countryside to warn the nation about the impending energy bill rises and encourage households to review their tariffs before higher prices take effect from July 1. Electric digi-vans, showing a live timer counting down until 1 July, have travelled through major cities across England, Scotland and Wales, including London, Birmingham, Manchester, Liverpool, Llandudno, Edinburgh, Newcastle, Leeds, Sheffield and York.
Ben Gallizzi, an energy expert from the energy comparison site Uswitch.com, said: “The jump in energy prices might seem easier to bear in summer while heating is off – but a graver concern is this setting the baseline for a further increase in October. If you haven’t switched in a while, you’re almost certainly on a standard tariff, and you will be impacted. Getting off a standard tariff and locking in a fixed rate deal should be an urgent priority for households.”
In a study commissioned by the brand, as many as two thirds (63%) of the 4,000 energy decision-makers weren’t even aware of the upcoming energy price cap coming into effect next week. But 23% of those who were aware say the price hike has left them feeling powerless over their bills, and a further 23% are angered by it.
In a separate poll commissioned via OnePoll.com, 42% of those currently on a standard variable rate – and who will be hit with the price rise – still aren’t considering switching to a fixed rate tariff before July 1. Exactly three in 10 are happy on their current plan – despite this meaning they’ll be paying more – while 22% are hesitant about committing to a long-term contract.
Of the 2,000 household energy decision-makers that were surveyed, 20% find comparing tariffs daunting, and 18% wrongly believe switching to a fixed tariff will result in minimal or no savings. If there was anything that would encourage them to switch, 29% of non-fixed tariff users say it would be the protection against future price rises – something that a fixed tariff can guarantee.
Knowing it was an easy and simple process would sway 28% as it emerged 15% don’t feel confident about how to switch energy tariffs Ben Gallizzi added: “For the millions of households on standard tariffs, this is your one week warning that your energy rates are rising on 1 July – unless you act now.
“There are many fixed deals available that are cheaper than the price cap, with average savings of over £300 on offer making it a crucial move. These deals might not be around for long, so take a few minutes to check online to see what deals are available to you.”
