Energy deal hikes to cause debt worries this winter?

People in the UK could see their debt fears worsen this winter as a result of energy deal hikes, new research has suggested.

According to moneysupe…

People in the UK could see their debt fears worsen this winter as a result of energy deal hikes, new research has suggested.

According to moneysupermarket.com, increases in the average fixed tariff combined with the upcoming temperature drop could spell bad news for households in Britain.

The website found the cost of the average energy deal has increased by £81 a year across the board since May – marking a rise of eight per cent.

Moreover, fixed energy products have witnessed the most notable changes, with the average cost of a fixed tariff currently standing 20 per cent greater than it was four months ago.

Online tariffs have also seen a steep rise in this time, with the costs escalating by six per cent.

And the price comparison site noted such hikes are evident across the board and warned the trend looks set to continue.

It means tariffs have crept back up despite falling in price by an average of 12 per cent between August 2009 and May 2010.

And those searching for the cheapest deals may be best advised to go online for dual fuel offerings, the portal observed.

Scott Byron, energy manager at moneysupermarket.com, commented: "Providers have been pulling their best energy deals from the market which means the average bill has risen sharply in the last few months alone."

He added new customers will have little choice but to opt for a more expensive deal.

Recent research carried out by Churchill warned residents in the UK could be exacerbating their debt struggles by not properly maintaining their homes and subsequently facing the financial consequences at a later stage.

By Joe White
 

ADNFCR-622-ID-800086189-ADNFCR

Tell others:

shortlink