Fixed price energy plan coming to an end this month? You could be in for a £200 increase

Thousands of households across the UK could see their energy bills rocket by more than £200 once their fixed price plan ends in February

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Fixed price energy plan coming to an end? You could be in line for a £200 increase

This month marks the end of several popular fixed price energy plans and consumers on these tariffs are likely to see their bills rocket as they are pushed onto more expensive standard plans.

Which plans are affected?

Customers who selected ScottishPower’s Online Fixed Price Energy March 2014 will, on average, see their bills jump £211 to £1,199 per annum, at the end of the month.

Those who signed up to M&S Energy’s Fixed Price 2, will see their energy bills go up by £149 on average.

British Gas’s Online Variable February 2014 and Online Variable February 2014 with Energy Smart deals are also coming to an end and customers will be hit with an £80 annual increase.

Households which decided to go with Sainsbury’s Energy Discount Variable February 2014, will see their bills rise by £39 on average.

What plans are currently topping the best buy table?

Supplier

Plan Name

Price

Ovo Energy

Cheaper Energy Fixed

£1,015

Spark Energy

Direct Debit Advance 3

£1,025

First Utility

iSave Fixed April 2015

£1,028

Co-operative Energy

Fixed to 31 July 2015

£1,077

ScottishPower

Online Fixed Price Energy February 2015 v3

£1,081

British Gas/Sainsbury’s Energy

Fixed Price February 2015

£1,092

EDF Energy

Blue+Price Promise June 2015

£1,099

npower

Price Fix May 2015

£1,107

SSE

1 Year Fixed Price (w/ paperless billing)

£1,115

Green Star Energy

Fix 24

£1,123

E.ON

E.On Fixed 1 Year v6

£1,134

Source: uSwitch.com

Based on a medium usage customer using 3,200 kWh of electricity and 13,500 kWh of gas paying by direct debit (Spark requires this in advance) with bill sizes averaged across all regions.

What are fixed price energy plans?

At present, many of the plans dominating the best buy table are fixed price plans. This type of plan allows consumers to pay a set rate per unit of energy for a determined period of time. So if you sign up to a fixed price plan for three years, you won’t see your energy rates go up regardless of whether your supplier increases prices.

The downside of fixed price plans is that should prices go down, some deals will require you to pay a cancellation fee to switch to a cheaper deal. In some cases you will also find yourself paying a premium on energy prices, although this is mainly true of longer term fixed price plans.

Read more

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First Utility announces 3.5% price hike

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