Energy bills to jump £171 unless households switch in January
Nearly half a million households could see their energy bills rise by up to £171 as their existing fixed-term deals come to an end this month.
Some 492,625 customers will move onto their suppliers’ "standard variable tariffs" if they do not switch to a new deal by February. This could potentially cost customers an extra £84m over the course of the year, according to price comparison website Uswitch.
On top of this the energy regulator Ofgem has proposed a £21 increase to the energy price cap from April. This would see the maximum amount suppliers can charge customers on standard variable tariffs increased.
Uswitch’s Sarah Broomfield said: "With the majority of the country spending more time at home during this national lockdown, combined with the cold weather, we will be using much more energy to keep ourselves warm.
“People often use January as a prime time to detox their finances, and it means that many fixed deals taken out this time last year are about to come to an end. Anyone who does not act now will automatically move onto their supplier’s standard variable tariff.”
Households working from home during the third lockdown could also expect to see their bills rise. Between March and October last year, energy firms raked in approximately £1.9bn more from those working from home, or £107 per household, according to comparison site Energy Helpline.
This means that household bills for gas and electricity were nearly 18pc more than they would have been had customers not worked from home.
Energy companies have not offered industry-wide payment holidays in the same way that mortgage or credit card providers did, but some suppliers will allow customers in debt to pause their bills.
