Debt management may be needed for those on fixed-price energy plans
Debt management may be needed for those on fixed-price energy plans
Thursday 18th February 2010
Independent organisation uSwitch.com has warned energy customers that they could see their bills rise by up to £258 when their guarantee plans come to an end next month.
Six fixed or capped energy plans, including British Gas, EDF Energy, E.ON and Scottish Power are due to expire during March.
The reason behind the anticipated bill shock is due to a significant difference in average energy bills now compared with four years ago, when many consumers signed up to the plan.
The average household energy bill in 2006 was just £735 per year, while today's bills are around £497 or 68 per cent more expensive.
Commenting on the figures, energy expert at uSwitch.com Thomas Lyon said: "Many of the households about to lose the protection of a fixed price energy plan are coming back onto a market that will look very different from a few years ago.
"With energy prices so high consumers face an important decision and we would urge them to take the time to shop around."
Mr Lyon said online energy plans typically offered the lowest prices, coming in at around £300 a year cheaper than standard tariffs and £217 less than the average fixed price plan about to expire.
"An online plan could be a good option for those who want to enjoy low prices today while having the flexibility to move onto a fixed price plan in the future if it looks like prices are going to go up," he added.
Energy industry regulator Ofgem recently stated that household energy bills will become unaffordable unless there is a radical system overhaul, proposing an investment of up to £200 billion.
Household energy bills could increase by up to 25 per cent by 2020, the regulator warned.
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