ENERGY bills are set to soar by £700 a year but Sun Money can reveal that some energy firms are trying to persuade customers to pay up to £500 MORE than that.
The Government has announced a hike from April on the price cap for standard variable tariffs (SVTs), the rate most homes are on.
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It means average annual bills will rise from £1,277 to £1,971.
But we have been flooded with concerns from readers and our investigation has shown that some companies legally advertise fixed deals that would cost you a lot more than staying on an SVT.
Experts advise families on SVTs to do nothing, as fixed deals are often at least £200 dearer than the new price cap.
And even if prices rise again, many of these fixed tariffs will still see you paying more for energy.
HARRIET COOKE explains what you need to watch out for.
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Luring language
WATCH for emails, texts or website advice telling you to fix when it is not in your interest.
EDF Energy recently told a customer: “With energy prices changing so much over the last six months and continuing to increase, our fixed tariff is the best option for protecting against future price rises and may help you save in the long term.”
The customer, paying £260 a month, was offered a £715 fixed tariff. But his SVT is capped at £358 a month and although it will rise in April, the increase will not be as much as the fix.
EDF argues that prices could rise or fall and when it gives a quote to customers, it does say they “may be” better off staying on the SVT.
Rogue referrals
SCOTTISH Power and EDF are paying cash bonuses to customers who tempt friends into switching to their expensive fixed tariffs.
The existing customer and their friend both get £50 to £60 credit but the tariffs are at least £300 more than the new price cap.
The cheapest EDF tariff for new customers online is £2,284, while Scottish Power’s is £2,460.
Consumer campaigner Martyn James said: “This is a rip-off and totally unacceptable. No energy firm should be encouraging people to fix right now.”
A Scottish Power spokesman said: “Refer A Friend is still open for existing customers to recommend a friend.
“As this has always been an online-only acquisition campaign, only tariffs available online will be displayed to customers recommended by a friend.
“At this time, only our fixed tariffs are available for online sign-up.”
Cashback cons
ENERGY firms are still offering new customers cashback if they sign up to pricey deals — even after The Sun exposed them for doing it in December.
Scottish Power is offering new customers £65.50 on TopCashback for fixing for a year, and £32 on Quidco, although its one-year fixed deal costs an average of £2,460 — £500 more than the price cap.
EDF’s Topcashback offer is £30 for customers who switch to a two-year dual fuel tariff, costing an average of £2,284 — £300 dearer than the new cap.
Its TopCashback page does not explain that customers may lose out by fixing their tariff, but instead claims switching means “you’ll get great prices and service”.
An EDF spokesman said: “When providing any quote, we highlight that customers may be better off staying with their current supplier and remaining on the standard variable tariff.
“However, thank you for flagging this with us and how it could possibly be perceived.”
Hiding the cheapest deals
LEEDS building surveyor Paul Robinson, 47, complained to his supplier after it seemed to hide the cheapest deal from him.
He is about to end a fixed deal of £177 a month but is unsure of his best option, as Scottish Power is not displaying the standard variable rate on the “change tariffs” page of his online account.
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From looking at price- cap figures, Paul believes he will be paying about £375 a month.
But the cheapest tariff highlighted is Scottish Power’s £478-a month one-year fixed.
He said: “For two months they’ve been emailing me trying to get me to sign to another fixed deal, before mine ends on Monday.
“But on the ‘change tariff’ page I can’t see any mention of the standard tariff. The ‘best deals’ are at least £100 more than the standard variable tariff.
“Info on the standard rate and price cap should be clearly displayed in the ‘change tariffs’ page.”
A Scottish Power spokesman said: “We comply with Ofgem licence conditions regarding the terms offered to customers — this includes the option for customers to request SVT.”
Ofgem said suppliers must offer existing customers the same deals as new ones. It states they should enable consumers to make an informed choice between fixed tariffs and the price cap.
Should I fix?
ERE are no fixed tariffs cheaper than the new April price cap of £1,971 – so stay, for the moment, on the standard rate.
MoneySavingExpert says if the price cap does not change again in October, you would have to find a fix no more than 44 per cent higher than your current tariff, capped to £1,277 for the average family.
If the cap rises in October by another 20 per cent, as some experts predict – to more than £2,300 on typical use – you would need to find a fixed deal no more than 59 per cent pricier than your current rate.
Confusion over bills
RETIRED journalist Kevin Bourke, 60, from Manchester, has spent hours on hold to Scottish Power after his bills suddenly doubled without warning.
He said: “We were moved from Tonik (which went bust in October 2020) to Scottish Power without our knowledge or consent and after paying £70 a month for fuel, we then were paying £165, then £180.
“We didn’t know what tariff we were on and it was impossible to get through to anyone.
“We held for an hour several times but after waiting so long, our telephone provider would just cut off the call. When we finally did get through, they promised to contact us but never did.
“I did manage to speak to someone this week and they couldn’t even tell me what tariff I was on.
“We’re now paying £128 a month, which I believe is a variable rate and will increase from April.
“When I look online I can only see fixed tariffs on offer that I’m sure will be much more expensive at £330 a month.
“It’s a nightmare trying to work out the best option.”
