Have you got a tariffic cheap energy deal?
If a couple of years back you signed up for a bargain priced energy tariff then hold on to your hats – as many of these super cheap deals expire next month you might have to star paying £200 more.
The cheap energy deals which many of us flocked to in 2009, and which often included fixed price plans which shielded people from price hikes, are coming to an end from 1st May. According to uSwitch.com, those who are not vigilant in finding a new deal could face a nasty surprise as their bills rocket.
Thomas Lyon, energy expert at uSwitch.com, says: ‘The fact that so many people will be seeing their energy prices go up as their current cheap energy deal comes to an end means that these plans have been doing their job. Many of these households face an increase of around £200, which could come as a bit of a shock. With energy prices so high and so much uncertainty over future prices consumers face an important decision and we would urge them to take the time to shop around.’
So how should we go about making the best of a bad lot – should we opt for a fixed price plan or go with the best online plan available. Lyon explains:
‘Fixed plans are definitely right for some, but they do carry a premium. Online energy plans consistently offer the lowest prices, coming in at around £200 a year cheaper than standard tariffs," explains Lyon. "An online plan could be a good option for those who want to enjoy low prices today while having the flexibility to move onto a fixed price plan in the future if it looks like prices are going to go up.
’For those who prefer the security of a fixed price plan our advice is to see what your current supplier can offer, but then compare with other fixed price plans in the market to find the most competitive deal. It's also important to be aware that most fixed or capped plans carry an early exit fee - consumers should always check the small print carefully and ensure that an energy plan meets their needs before signing on the dotted line.’