THOUSANDS of people could see their energy bill skyrocket by more than 400% in a matter of weeks.
Households currently on cheap fixed tariffs with their energy provider could be in for a shock when their deal comes to an end.
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Some households are paying just £850 a year for energy at the moment, but could see this soar by hundreds or even thousands of pounds in a matter of weeks.
The Mirror reports that 226 energy deals are set to finish by the end of March.
At this point, customers will have to find a new deal. But there are no cheap tariffs left on the market after wholesale energy costs have soared.
The energy price cap is currently £1,277 – this should be the maximum you pay if you’re on a supplier’s standard variable tariff.
It means those on the cheapest fixed deals at the moment will see their bills surge by around £400 if they choose this option.
But anyone looking to lock in to another fixed tariff faces paying even more.
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Research found that Outfox the Market currently has a tariff of £309 a month – a whopping total bill of £3,708 a year.
That’s an increase of almost £3,000 a year for any households currently on the cheapest deal – a rise of more than 400%.
But customers do not have to lock in to a fixed deal – in fact, the current advice is not to do this because there are no cheap offerings on the market.
According to Uswitch, the cheapest fixed deal is currently from Scottish Power and is £1,798 for 12 months – that’s £521 MORE than the energy price cap.
The average fixed deal is currently £2,391 – some £1,114 above the current cap.
But even avoiding a pricey fixed tariff won’t get you out of price hikes.
The energy price cap is set to increase twice this year, with bills likely to soar to more than £2,000 for the average home.
Martin Lewis was recently left “in tears” after he was unable to help one struggling mum with her bills, and said “intervention is needed”.
Martin said the vast majority of people should “still be doing nothing” and stick on the price cap instead of switching to a fixed deal.
Martin said the vast majority of people should “still be doing nothing” and stick on the price cap instead of switching to a fixed deal.
If you are tempted to take out a fixed tariff, it should be no more than £500 over the current energy price cap of £1,277.
What can I do to keep my bills down?
Unfortunately, it is expected that energy bills aren’t going to come down any time soon.
A surge in wholesale prices has already caused 27 energy providers to collapse, affecting more than 1.8million customers.
If your provider does cease trading, you won’t be left without a supply.
Instead you’ll be transferred to a new provider, but they don’t have to honour the current deal you’re on.
If this does happen, make sure you aren’t double charged, as some customers have been.
Simple things like turning the thermostat down one degree can help save you money.
And if you are struggling, there might be help you can access such as the warm home discount, a one-off payment of £140 to help with the cost of your electricity bill through winter.
If the mercury drops you might get a cold weather payment of £25, which kicks in if it’s below freezing in your postcode for seven days in a row.
Martin Lewis almost in tears after being unable to help mum with energy bills
