BILLS are rocketing for millions of Brits, but some have been lucky enough to have secured fixed energy deals so they are sheltered from hikes – for now.
Households are finding their deals are coming to an end, and are shocked at how much more they will now have to pay.
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One of them shared their surprise at the “outrageous” quotes they were getting when searching for a new deal on their energy bill.
He faces paying almost double the amount for the five bedroom semi-detached home he shares with his wife and two-year-old child.
“I am unfortunately coming to the end of an energy price fix,” he said on a post on Reddit.
“Electric runs out April 22 and Gas Feb 22.
“I’ve just had offers through for new fixes they are outrageous essentially taking me from an already high bill of £220 per month (£187 once we are ‘caught up’) to over £400 per month for one tariff and £500 for another.”
Fixed deals used to be cheaper than moving on to energy company’s “default” standard variable tariff.
But an energy crisis means that it is no longer the case.
Wholesale gas prices have rocketed and energy companies have passed that on to consumers through higher prices for fixed deals,
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The current cheapest fix is now more than £2,000.
Default tariffs are now cheaper as they are limited by the price cap, and more than half of energy companies have reverted to this to keep bills down as much as they can.
The price cap is currently set at £1,277 for average dual fuel bills.
It is expected to rise further in April when the twice-yearly review of the cap comes in.
The anonymous poster said: “My wife and myself don’t earn badly but these prices are a real risk to our long term goals.”
He’s not the only one confused by what’s going on in the market and shocked by bill rises.
Unfortunately many others like him face paying more for bills when their fixed deal ends.
And some are wondering if they should move off the price cap and fix their bill even at the high amounts, because capped bills are expected to rise further .
Complex situation
Money saving expert Martin Lewis has crunched the number in his recent newsletter, and has explained that for most, the answer is no, “but for the first time in many months fixing may be worth it for a few.”
“If you’re offered a fix that’s no more than 40% costlier than your current price-capped tariff, it’s worth considering – especially if you value budgeting certainty.”
Most fixed deals available now are around 56% more than the cap, so fixing is unlikely to be worth it, unless you have very high or low usage, he explained.
“If you’re offered one, do the numbers to see what percentage the increase is,” said Martin.
But, there’s a risk that if you fix now and prices drop, you could be locked in to a deal costing more.
On the other hand, if prices rise, you’ve locked in at the cheaper rate.
Our SqueezeTeam expert Richard Neudegg has warned that customers should watch out for offers from their energy supplier to switch them onto a new tariff, as it could be thousands of pounds per year more expensive than the one that they’re already on.
“We used to say back in the day, you could switch and easily get a tariff that’s much cheaper than what you are currently paying if you haven’t changed deals in a while.
“At the moment that’s not true.
“There are some very, very expensive fixed tariff deals in the market and some suppliers have been flagging those to customers.
“If you switch to them in the middle of winter, you’re going to immediately see a jump in what you’re paying.
“We’ve seen some fixed tariff deals that are as much as £4,000 a year for a customer with average usage.”
There’s no easy answer to rising bill costs caused by the energy crisis, and Martin was left nearly in tears on his show after he was unable to help a single mum cover her rocketing bill.
The government has promised to intervene, but it’s still unclear what bill help could look like.
The anonymous billpayer on Reddit is now considering home improvement he can make to improver the property’s energy efficiency, including insulation and replacing some of the single glazing to double.
Energy improvements can reduce your bill, but you may need to fork out for them first.
Other easier hacks around the home, for instance switching all your electronic devices off standby could save you £35 a year.
Check out these 21 steps you can take to slash your energy bill.
Help you can get if you’re struggling with energy bills
In the first instance speak to your supplier, and don’t stick your head in the sand if you’re falling behind with bills.
Sorting it sooner rather than later means you won’t spiral into debt which could damage your future finances.
There are some suppliers that have charitable trusts, which help you pay off any arrears you might have.
British Gas Energy Trust, for example, runs a scheme where anyone can apply for a grant, and you don’t even have to be a customer.
Other firms that offer grants just to their customers include:
Your local council may also be able to help with cash and grants if you are struggling with bills through the Household Support Scheme
The winter fuel payment scheme, where those getting the state pension can get between £100 and £300 to offset the cost of keeping their homes warm.
Low income households can get £25 a week to help with energy bills during the winter thanks to the cold weather payment scheme too.
The warm home discount scheme means you can a £140 payment that goes toward your heating costs – but you need to act quick as this scheme has already been closed by some energy suppliers.
You could be eligible for a budgeting loan if you’ve been on certain benefits for six months.
But while this can help cover some costs like if your boiler breaks down and you need to replace it, or you need to buy new energy appliances, like a washing machine or tumble dryer, you will need to pay the money back.
So check the other non-repayable help you could get first.
If you’re worried about paying bills, falling behind or are in debt, there are plenty of organisations where you can seek advice for free, including:
Martin Lewis warns energy bills will rise by £600 a year in April
