Now is the time to switch your energy tariff

by Mark Vickery on 02 August 2011  |  2 comments
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More cheap fixed tariffs expired on the 31st of July, just in time for the price rises.

The ScottishPower price rise came into effect on Monday 1st August, affecting millions of customers. Gas prices have risen by 19% and electricity by 10%, adding an extra £170 to the average yearly bill, although this could be much higher for some customers.

All non-standard energy tariffs have an expiry date of some form or other. Fixed and capped tariffs have the same rate until the set date, eg. Fixed Price Jan 2014, after which the tariff expires and you’ll be put onto another tariff, usually Standard.

However, it’s the cheap online energy tariffs you have to watch out for. They are cheap because they have a guaranteed discount on the current standard rates at the time you sign up, generally for a year. Once that year is up, your tariff could go up by hundreds of pounds and you’ll be blissfully unaware... until the bill arrives!

For example, the average bill for customers of ScottishPower’s Online Energy Reward tariff used to be around £800, but it’s now the cheap rates have expired and standard rates have gone up to around £1,300!

It really is imperative to check your bill for your tariff name, and if it says Standard – switch immediately if you can!

Meanwhile, yet more cheap fixed tariffs have been withdrawn from sale. New ones have been introduced, but as fixed rates are usually set at a premium above standard rates, they’re not cheap! On the other hand, they do provide you with the security of knowing your rates will not rise for at least a year, no matter what happens.

The 10 cheapest fixed energy tariffs

Here are the ten cheapest fixed tariffs left:

 *Based on typical tariff costing £1,150 p.a. Based on Dual Fuel, payment by monthly Direct Debit, average usage as set by Ofgem. Prices correct as of 21st July 2011.

Compare energy tariffs with Lovemoney