Urgent warning to 26 million homes: soaring energy price cap will cost £2.8 billion more per year

• Uswitch urges 26 million households^[1] to act now and get off price-capped tariffs, now predicted to rocket by up to 6% in April and up again in July^[2]
• Homes that stay on their supplier’s default tariff will see their bill rise around £109 on average to £1,847, with a further £35 rise predicted in July^[2]
• A 15-month high in wholesale electricity prices combined with soaring winter demand has pushed price cap predictions higher than earlier expectations^[3]
• Cheaper deals include a guaranteed £100 discount on dual-fuel standing charges from EDF, exclusively available at Uswitch and Confused.com^[5]
• Households are advised to act quickly to lock in a deal at or below the current price cap, to beat the April price rises.

The 26 million UK households on default energy tariffs^[1] need to act now to avoid a soaring price cap that could see their energy costs rocket around £109 a year from April^[2], according to experts from Uswitch.com, the comparison and switching service.

Wholesale energy prices have hit a 15-month high, pushed upwards by high demand for gas and electricity during the cold winter^[3] and global instability. 

The 1 April energy price cap is expected to increase more than previously expected, with E.ON predicting a £109 increase to £1,847^[2] – a 6.3% hike from the current £1,738.  

Bills are expected to go up by a further £35 in summer, with the July price cap predicted to be £1,872 – 8% higher than todayʼs rates^[2].

Uswitch.com is encouraging households to act quickly to lock in a deal at or below the current price cap, to protect them against the anticipated increases in the price cap over the coming months.

Those not wanting to fix can also now consider tariffs that track the price cap but promise to stay below it by a certain margin. Current deals include EDF’s Simply Tracker Extra tariff, exclusively available at Uswitch and Confused.com^[5] that guarantees a dual-fuel discount of £100 against the price cap over 12 months. The discount applies to standing charges, so households that use less energy will save more proportionally. Bill payers should always check they are happy with the tariff duration and any exit fees before signing up.

Elise Melville, energy expert at Uswitch.com, comments: “If you haven’t switched energy lately, you are likely to be already paying over the odds, and the coming price hikes will only make things worse. 

“Now is the time to take action, before the price rises hit. Any deal that is priced at, or below, the current cap level is likely to save you money over the coming year.

“If youʼre not ready to fix, then consider a tariff that guarantees a discount on the price cap, whether it rises or falls. EDF’s market-leading tracker promises a saving of £100 against the price cap over 12 months. The discount is applied to dual-fuel standing charges, so this deal is particularly suited to households that use less energy.

“Standard tariffs are now the most expensive way to pay for your energy. The good news is, a better deal is out there for most homes. Right now there’s a lot of choice available and it takes just minutes to compare your options and switch to a better deal.”

Run an energy comparison at Uswitch.com to beat the price rises.