End of fixed rates ‘could cause debt’

Millions of Britons could face further debt problems as fixed rates from big energy providers come to an end, moves that are being rolled out in the next few months.

According to Confused.com, many people signed up to these during huge price hikes in 2008 and now these customers could possibly be exposed to higher rates because of an ongoing price war.

Head of utilities at the company Gareth Kloet observed that it is important that consumers make sure they are not automatically transferred over to their supplier’s standard tariff, something that is sure to occur if no action is taken.

“The end of an existing fixed rate does not necessarily mean a bill increase if customers shop around for the best deals,” he said, adding that each week sees “new competitive deals coming up”.

Mr Kloet’s recommendations follow similar ones made by Gocompare.com’s Mark Greening, who advised people to shop around to experience greater savings, stating that the assumption that one tariff will suit everyone is incorrect.

By Sarah Adie

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