People being urged to change energy tariff as price hikes loom

Households are being urged to act quickly to avoid being hit by upcoming energy price hikes.

The cost of power is expected to rise imminently and MoneySuperMarket has called on people who are still paying their provider's standard prices to make the switch sooner rather than later in order to beat any increases and take advantage of the best tariffs while they are available.

Calculations by the comparison site show that if the predicted price hikes by the so-called big six energy firms average the same as last year, 12.6 million standard energy customers would be hit by a collective £1.4 billion increase to the cost of their annual bills. 

These households are already forking out £2 billion a year more than they need to for their gas and electricity as a result of not switched following the last round of price rises at the end of 2012, according to MoneySuperMarket.

It is now urging those on standard price plans to act swiftly and switch to a fixed rate energy tariff that will protect against future increases, while simultaneously slashing their bills. 

There are several fixed rate tariffs on offer, including longer term fixes that in some cases guarantee prices for the next four winters. If consumers wait until the first price hike announcement it could result in them missing out on some of the most competitive products currently available. 

Clare Francis, consumer expert at MoneySuperMarket, said the energy companies have said "loud and clear" that prices will soon be rising. She expects to see announcements in the next few weeks and so is calling on consumers to act fast.

"It's disheartening that so many households are already paying a record amount for their gas and electricity and failing to take advantage of the savings available – particularly as switching energy provider is a really simple thing to do," she added.

Energy is one of the largest outgoings for individuals and families, so finding the right tariff is absolutely essential in order to keep costs down, generate savings and pay off debt.

By James Francis