Energy bills: Homeowners urged to avoid ‘costly mistake’ as summer marks £330 price hike
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The summer months are typically the time of year when homeowners will be worrying less about their energy bills and more about their water bills. However, the start of summer could see many UK households stumble into paying up to £330 more for their energy every year. Energy analysts at Forbes Advisor UK are warning homeowners not to let summer distract them from rising gas and electricity bills.
Their latest analysis has found that in the next two weeks, there are 106 fixed-term energy deals that are due to expire.
When they expire, customers on these tariffs could end up paying £195.46 more.
The worst hit could end up paying £329.59 more per year.
Why will some customers end up paying more for their energy bills?
The experts at Forbes Advisor UK claim customers who stay with the same supplier year after year will find themselves on a “standard variable tariff”, otherwise known as a “SVT”.
This can also be called a “default” tariff when customers’ fixed term tariffs come to an end.
According to Forbes Advisor UK, the money from SVTs subsidises attractive rates which they offer to win new business.
The best way to ensure you get the best deal is to switch and make sure you’re a “new” customer.
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The average bill hike that will be felt by those affected in June will be £195.46 – a 21.9 percent rise.
The average increase across all UK regions is based on an Ofgem-defined “medium” user, paying by monthly direct debit.
However, customers on Shell Energy’s “Energy June 2021 v4” (due to end June 30) will see their annual gas and electricity costs jump from £808.56 to £1,138.15 a year.
This adds a whopping £329.59 (+ 40.76 percent) to customers’ bills.
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E.ON customers on their “Fix 1 Year Exclusive June 2020”, which is due to end on June 23, could see their prices rise by £326.76.
Those also on Shell Energy’s “Energy June 2021 v3”, which is set to end on June 30, could see prices rise by £320.94.
Kevin Pratt, personal finance expert at Forbes Advisor UK, said homeowners in the UK aren’t using anywhere near as much energy now but not switching could be a “costly” mistake.
He explained: “With the mercury rising happily in June, it’s hardly surprising that our thoughts will be on pretty much anything other than our energy usage.
“We aren’t using anywhere near as much energy now to heat and power our homes as we do in the autumn and winter, so it’s easy to forget.”
“But, this could be a costly and completely avoidable mistake to make.
“Switching energy regularly has been acknowledged by consumer and political groups, and the energy regulator, as the single best way to ensure you’re on a fair energy deal, and it really takes very little time to do.
“So if you’re not sure when your energy tariff is due to expire, check, then mark a date in your calendar around a month before, and when it comes time, head to a comparison website to compare deals.
“The switching process is straightforward, and savings of as much £477 are not uncommon.”
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