What’s the difference between a fixed energy tariff and standard variable tariff? If you’re unsure, don’t worry. You are not alone.
Luckily, we have a handy guide explaining the ins and outs of the various energy tariffs here.
The next question; do you know which one you’re on? Again, you’d be forgiven for not knowing. Check out your latest bill to find out.
Now perhaps the most important question; are you prepared to lose £400 this year? Because that could happen if you’re not aware of how you pay for your energy.
Many households could see their energy bills soar by up to £416 in a year, as a number of fixed tariffs come to an end this month.
Energy tariffs expiring
Customers risk being automatically moved onto standard variable tariffs when 17 fixed deals from ten suppliers – including seven with the big six energy providers – expire in May. So if your tariff is coming to end, I urge you to start shopping around and switch now.
Incidents like this are precisely the reason why we have been calling for action in the energy market. In fact, recent Which? research found that more than half of people consider energy to be priority issue for the next government. This is hardly a surprise when energy prices have increased more than 40% for gas and 35% for electricity over the last 10 years.
It’s a timely moment to consider this when a cap on energy prices is being discussed. If the next government were to introduce a cap on energy prices, we think there are a number of tests that would need to be passed to ensure customers get a fair deal on their energy prices. These five tests for any energy price cap are that:
- It must not cause longer-term price increases
- It must not remove incentives for providers to improve their service
- It must not stifle innovation
- It must lead to a truly competitive energy market
- It must have clear criteria for bringing any cap to an end
Did you understand the difference in tariffs when you signed up to your energy provider? Have you made moves to stop yourself losing money? How do you think an energy market can function in the best interests of consumers?
All prices are provided by Energylinx, based on the details of a dual-fuel medium user who uses 13,500kWh gas and 3,100kWh electricity per year, pays by monthly direct debit and chooses paperless billing. Prices are rounded to the nearest whole pound and averaged across all UK regions. Data correct at 8 May 2017.