October is set to be a big month for fixed deals that are approaching their end date — meaning default tariffs are just around the corner for hundreds of thousands of consumers, threatening even pricier winter bills ahead.
Last October saw many consumers taking up cheap fixed energy deals; these are deals with cheaper rates set for the duration of a fixed period, often around 12 months. However, the end dates of many of these deals are now approaching, meaning many could find themselves sleepwalking onto expensive standard variable tariffs if they don’t take action.
21 energy suppliers have a collective 49 tariffs coming to an end on 31st October, with costs set to increase by up to £395. Households should check their energy bill for their tariff’s end date and switch to a new deal. Suppliers are required by Ofgem to waiver fees for anyone who switches at least 42 days before their plan end date — so those with tariffs ending on 31st October are now free to switch, penalty free.
Could you have a broadband deal ending too?
BT, Sky, Virgin, Plusnet and TalkTalk all have plans ending with out of contract pricing that could increase your bills by £198 a year.
If you tend to switch your utilities at the same time, or perhaps switched them when you moved house, then you could have a broadband deal ending at the same time as your energy one too. Collectively, rolling off of energy and broadband deals onto SVTs and out of contract pricing could see a consumer paying £49 a month extra.
Loyalty rarely pays when it comes to household bills. It’s very easy to end up paying poor value out of contract prices for exactly the same products that last month cost just a fraction of the price.
Plenty of choice for a new deal
Fortunately, there is plenty of choice when it comes to finding the right energy and broadband deal. Consumers can save money and choose the service they want without breaking the bank. All they need to spend is a few minutes shopping around.
We’re all getting an extra hour when the clocks go back this Sunday. Savvy switchers can use the time to save themselves from a £50 per month price rise and still have plenty of time left over for a lie in.
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