UK households face £84 million energy bill hike, warns Uswitch

• Energy bills could rise by £84 million at the end of January as 68 fixed plans come to an end, Uswitch.com reveals

• The hike, which affects half a million homes, is seen as a triple blow to households who are already facing increased energy usage due to freezing temperatures while working from home and home schooling

• People are now being urged to check their energy deal, as those impacted could see bills rise by £171 if they do not take action and switch supplier 

• Energy best buy table currently shows a £161 difference between the best deals on the market and the default energy price cap

• Uswitch.com offers advice on how consumers can switch this winter. 

Household energy bills are set to rise by £84 million at the end of January as 68 fixed deals come to an end[1][2], according to new data from Uswitch.com, the comparison and switching service.

Impacted households could see their bills rise by £171 on average, as they will move automatically onto a Standard Variable Tariffs (SVT) if they do not take action and switch to a new deal. Energy bills are expected to rise in the coming months, as it is likely that Ofgem will announce in February that the price cap will increase in April[3]. 

Uswitch is now urging customers to check the status of their current energy deal and take action if their deal is due to expire.

Currently, there is a £161 gap between the cost of the best deals on the market and the default energy price cap, which sits at £1,042.

With 68 fixed deals ending in just a few weeks, time is running out for the half a million affected households (492,625) to avoid paying more for their energy at a time when temperatures are plummeting and people are spending more time at home during the national lockdown. 

The cheapest deal currently on the market is the SimplyLoyal21 tariff from Simplicity Energy at £880 fixed for 12 months. 

Uswitch.com is offering advice on how consumers can become more savvy with their energy bills, to stop them paying more than they need to. 

Uswitch’s top advice for switching: 

• Put a reminder in your calendar for when your energy deal is coming to an end. By remembering it is time to switch supplier, you can avoid overpaying for your energy. 

• By registering with Uswich.com, you can even receive an emailed reminder when your deal is due to end.  

• It does not matter if you cannot find your last bill or annual statement, as your usage can be estimated. 

• Your energy supply will not be interrupted when you switch — all that changes is the company that bills you and the rate charged for your energy. It only takes 10 minutes to set that process in motion. 

• The entire energy switching process should take 17 days, which includes a two-week cooling off period in which you can change your mind. 

Sarah Broomfield, energy expert at Uswitch.com, said: “People often use January as a prime time to detox their finances, and it means that many fixed deals taken out this time last year are about to come to an end.  

“Anyone who does not act now by signing up to a new tariff will automatically move onto their supplier’s standard variable tariff, which could add as much as £171 to bills. 

“It is also likely that the energy price cap will increase from April, meaning bills are likely to become more expensive. This makes it even more important that people who are about to move onto a standard variable tariff switch suppliers now. 

“With the majority of the country spending more time at home during this national lockdown, combined with the cold weather, we will be using much more energy to keep ourselves warm. 

“Switching suppliers is simple, and can take as little as 10 minutes. If you’re struggling to work out how to check when your tariff is due to end, you can use our online guide to point you in the right direction.” 

Find out how you could save nearly £1,000 a year with Uswitch here.