Biggest energy price increase revealed as millions see bills rise
Millions of UK energy customers could see their bills go up significantly in June when a host of fixed tariffs expire over the course of the month of May. Will this energy price increase affect you? You can find out by checking with your supplier.
The energy price increase explained
Millions of people across the UK could see their energy bills rise as the term on their fixed-rate energy tariff comes to an end and they’re moved automatically to their provider’s standard variable tariff.
Providers switching fixed-rate customers to their standard variable tariff at the end of their contract is common practice, but a host of fixed tariffs from the UK’s largest suppliers ending on the 31st of May or earlier means that a huge number of customers will be affected all at once. If you’re on a fixed deal with one of the following providers, you could be badly affected:
The issue has been compounded by the fact that Ofgem, the energy regulator, has put up the annual price cap for variable dual-fuel tariffs as of April 2021. The cap now sits at £1,138 and almost all major providers have put up their rates to match it.
The worst-affected customers are those on British Gas’s Energy and Boiler Cover May 2021v4 tariff, who can expect to see their bills rise by as much as £331.91 a year. These figures are taken from a study done by Forbes Advisor UK, which says that the average energy price increase experienced by UK customers will be £192.20 if they don’t switch, so it’s not just customers with large energy providers who are at risk.
Only way to save is by switching
Kevin Pratt, a Forbes Advisor UK representative, warned customers not to get complacent about their energy spending during the summer months, saying that “just because we are using less energy it doesn’t mean our bills can’t get more expensive.”
It’s true that spending too much is spending too much, whether it’s for low usage or high, and you don’t want a nasty surprise when summer’s over and your usage goes up. Pratt says in this instance, switching back to another fixed tariff is the only way to guarantee long-term savings:
Not only do they offer protection from any future price rises, they are also, typically, the far cheaper option. But, as with anything, if you let them go past their expiry date they'll soon go bad. So don’t allow yourself to be rolled onto your supplier’s default SVT when your deal comes to an end.
The same study found that People’s Energy is currently offering the cheapest fixed dual-fuel tariff. The provider’s East Lothian Fixed Tariff March 21 was quoted at just £909.92 for the same estimated usage.