28 April 2011

Bill Hike Potential as Cheap Energy Deals End

Energy customers who are locked into a cheap energy plans could see their bills rocket as these deals come to an end, experts warn.

According to uSwitch, energy bills could rise by up to £227 as they identify seven price guarantee plans which will be coming to an end.

From 1st May this year, seven energy plans dating back to 2009 will be coming to an end in May and June making it vital those customers enjoying these cheap deals compares the energy market for a suitable alternative.

The research reveals just under seven million households are on these cheap plans and could be affected by a steep bill hike if they do not look at competitive deals currently available.

uSwitch shows online energy plans continue to be the best deals on the market, offering the best value for money.

The E.ON Track and Save Version 4 for example is one of the plans coming to an end, costing £1,000 on average annually.

This plan is £33 a year cheaper than their standard plan which customer's are likely to fall back to should they not switch. However, the plan is £94 more expensive than their online deal.

Ofgem's requirement for energy suppliers to give their customers 30 days notice of price rises is coming into effect today too.

"People clearly need to be given fair warning if prices are going to go up, not told months after the event,” commented Hannah Mummery, Consumer Focus energy expert.

"This welcome move will help give people the opportunity to budget for higher bills in advance, weigh up their options about whether to switch supplier and shop around.”

The cheapest online energy plan on the market costs £895 a year which is £23 a year less than the average plan which is ending, meaning customers could end up saving money if they act quickly.

Take a look at the MoneyMaxim Energy Comparison Service