Best energy deals: Fixed-rate tariffs due to end for 250k households

Around 250,000 households will be switched onto a pricier default energy tariff soon if they do not switch tariff or provider when their deal ends, new research has revealed.

This month 182 fixed energy tariffs finish, according to data from Compare the Market.

Of the fixed tariffs ending, the average increase to energy bills will be £166 per household – a collective increase of £41million a year – the comparison website warns. 

If customers do not switch when their fixed tariff ends, energy companies are set to benefit from a huge ‘inertia windfall’.

Households that do not switch before April will also face an additional increase to their bills as the new price cap limit comes into force. 

Ofgem, the energy regulator, recently announced the default energy price cap will change from its current level of £1,042 to £1,138.

The increase of £96 includes an additional £23.69 energy suppliers can charge a year to help them cover for coronavirus-related costs.

Separate research from Compare the Market’s financial confidence tracker shows annual energy costs would only have to rise by an average of £85 in order to tip households with children at home into financial difficulty.

Peter Earl, head of energy at Compare the Market, said: ‘Households that do not switch when their fixed tariff ends very often face a significant increase to their energy bills, as they will be automatically moved to their supplier’s higher priced standard tariffs.

‘Added to this, the decision to increase the price cap will potentially add another £96 on average to the bills for those on standard tariffs from 1 April.

‘If you are coming to the end of a fixed term period with your energy supplier, it’s the right time to take action and see if you can get a better deal by moving to another provider.

‘The impact that the pandemic is having on many people’s finance is becoming particularly stark, and as our latest research shows, the price cap increase is likely to push a number of households, particularly those with children at home, further into financial difficulty.’

Customers whose fixed deal is set to end, or those who think they are paying too much for their energy, are encouraged to use price comparison sites to see if they could save money. 

The best deals on the market

The best energy deal currently available is with challenger supplier, Hub Energy, on its HUB Smart Choice Tariff 12 March 22 v3 fixed tariff.

Customers will pay £903.45 a year, on average, and will please those looking for a more environmentally friendly deal as it is a green tariff. 

The next best offer is from Utility Point on its Just Up 21 12M Fixed Wk09 fixed deal costing £919.12 a year. 

Avro Energy is third on its Simple and Super12M at £920.26 a year. However, it is not a green tariff and therefore may not be the best option for some. 

Eon and Scottish Power are the only two Big Six providers to make the list with Eon’s Fix Online Exclusive v63 costing £942.10 a year on average.

Scottish Power’s Greener Future March 2022 B1 deal, meanwhile, is slightly more expensive at £953.65.