Households must act against ‘imminent’ energy price hikes, says MoneySuperMarket

Consumer group MoneySuperMarket has warned households that they must “act swiftly” as it anticipates energy price increases of £1.4 billion within the next year.

The projections were calculated based on last year’s increase in energy costs with the ‘big six’ energy companies, claiming that the increase in costs is “imminent” and will affect 12.6 million households across the UK.

MoneySuperMarket says that, in order to avoid paying more for energy, consumers must change to a more cost effective tariff and take advantage of better deals whilst they are still available. It claims that consumers could collectively save up to £2 billion by switching.

Claire Francis, consumer expert at MoneySuperMarket said, “The 12.6 million households paying their provider’s standard prices are already paying £2 billion a year more than they need to for their gas and electricity and this will rise further when prices go up again, hitting them hard in the pocket, at a time when they least need it. The time to act is now.”

She also warned consumers not to wait for price increase announcements, adding, “A fixed rate tariff is the best option as this will ensure that the amount you pay for your gas and electricity doesn’t change for a set period of time, giving protection from future price rises.

“The cheapest fixed deal available is Fix & Save from M&S Energy. Those currently paying their provider’s standard prices could knock an average of £204 off their annual bill by switching to this tariff.”

Labour leader Ed Miliband caused controversy this week as he announced plans to introduce a price freeze on energy bills if elected in the 2015 general election.

Further reading:

Regulator supports calls to speed up energy supplier switching process

Ecotricity announces plans to undercut ‘big six’ electricity prices

Community energy: what you need to know

The Guide to Limitless Clean Energy 2013