A two-month warning has been issued to anyone who pays for a British Gas, EDF, EON, Ovo or Octopus energy bill. Some 12 million UK households have been alerted over imminent energy bill increases.
Research by Uswitch reveals that 63 per cent of homes on standard tariffs do not realise prices are expected to rise from 1 July, while 17 per cent mistakenly believe bills will fall. The price cap, which sets the energy rates paid by homes on standard tariffs, is predicted to increase by £202 from 1 July, taking the annual bill for an average home from £1,641 to £1,843.
Worryingly, a quarter of households on the standard tariffs affected by the changes do not know what is happening to the price cap on 1 July, and a fifth believe that their energy costs will fall. Nearly half of those on standard tariffs mistakenly think they are on the best deal, despite the fact that the average home could save hundreds of pounds with a fixed deal.
Expert Warning
Ben Gallizzi, energy expert at Uswitch, said: “Nearly 12 million households on standard tariffs are sleepwalking towards energy bill hikes, with their prices predicted to increase 12% in July. More worryingly, almost half of those on standard tariffs mistakenly believe that they are on the best deal, despite the fact that the average home could save hundreds of pounds with a fixed deal.
“Two-thirds of households say even a 10% increase in their energy bills would hit their finances, so now is the time to act to protect yourself from higher costs. Take a moment to check online to see what deals are available to you. The cheapest fixed deals available at the moment are 13% less than the predicted July price cap, so we urge households to lock in lower rates while they are available.”
Financial Impact
Sixty-six per cent of households say even a 10 per cent rise in energy prices would have a negative impact on their household budget. Ten per cent say they would need to use savings to pay their energy bills, and a sixth would cut back on essential spending, such as food or transport.
