The cheapest energy deal on the market has risen by £100 in just six months – but here’s how you can cut your bill
Energy tariffs are soaring, with even the cheapest deals rising rapidly. Here's how to cut your bill
HOMEOWNERS are being urged to switch energy deals, as costs for gas and electricity continue to soar.
Standard variable tariffs now cost, on average, more than £1,000 a month at most energy firms, including those outside of the big six, and prices continue to climb.
Even the cheapest deals are rising rapidly.
New analysis by price comparison uSwitch.com shows that the cheapest energy deal on the market has increased by £100, or 14 per sent, over the past six months.
The cheapest deal on the market then was IRESA's Flex 1 tariff, costing £734 per year. But today, the cheapest deal is IRESA's Flex 4 tariff, at £834 a month.
Five of the big six energy suppliers have hiked the price of their cheapest tariffs by an average of 16 per cent, or £135, since September, with the cheapest deal on offer from E.ON increasing the most significantly, by a staggering 26 per cent, from a £760 a year in September to £959 today.
SSE's cheapest fixed deal was £782 in September and is now £970.
And prices look set to continue rising, as many suppliers end their price freezes over the next few months.
With a difference of £143 between the average big six cheapest deal and the cheapest fixed deal on the market today, homeowners are being urged to shop around to find a better deal.
And with seven in ten families on the priciest standard variable tariffs, it's more important than ever to switch.
Thirteen small and medium suppliers have increased the price of their standard variable tariffs by an average of nine per cent, or £87, since October, uSwitch.com found, meaning it's not just the big six that are hiking prices for customers.
How to switch energy provider
MILLIONS of households across the UK have never switched energy providers and are languishing on standard variable tariffs, which are often the most expensive around.
Around 70 per cent of people are on bog-standard expensive standard tariffs, when they should be shopping around for a cheapest deal.
If in doubt, call your provider and call other providers to ask them what their cheapest fixed tariff is.
Better still, use a comparison website, like uSwitch or MoneySupermarket to find the very best deal for you. By switching providers you could save hundreds of pounds a year.
Bear in mind that the amount you pay for your energy varies depending on where you live.
Suppliers announcing increases include Co-operative Energy, Ecotricity, Octopus Energy, Flow, So Energy, Bulb, OVO and more.
Price rises are being blamed on the increasing wholesale cost of energy, which last summer started to climb at its fastest rate in years.
Emma Bush, uSwitch.com energy expert, said: “Consumers have been facing climbing energy prices for several months, but 2017 could see bills soar further.
"The cost of both standard and fixed deals continues to rise, and the respite provided by some suppliers’ price freezes will soon come to an end.
“Switching to a fixed deal will help consumers stay one step ahead of their energy provider – but only if they act now.
"Every home should take a few minutes to check that they are on the best deal possible and switch to a cheap fixed deal before they disappear.”
Five ways to cut your energy bills
- TURN your thermostat down by 1 degree. Incredibly, this can have a massive impact on your energy bill and can save you up to £60 a year
- If you are a pensioner you may be eligible for the Warm Home Discount, in which you can get a rebate on your winter energy bills. Find out more about the scheme .
- Wash your clothes at 30 degrees rather than 40. Around 90 per cent of a washing machine’s energy expenditure is spent on heating water, so washing at a lower degree will save you a lot of money.
- Get draught excluders. Blocking the breeze coming through the gaps in your windows and doors can cut your energy bills by around £35 a year.
- Switch energy supplier to ensure you’re on the cheapest deal. Millions of households are overpaying for gas and electricity, because they’re on standard variable tariffs which typically cost more than fixed deals. A new energy league table by regulator Ofgem can tell you whether you are on the best deal.
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