Households face a £221 increase in energy bills unless they switch to a fixed tariff within the next week, as the government's price cap is set to rise by 13% from July 1. The change marks the biggest energy price rise since the energy crisis, according to Uswitch, the energy comparison website.
Price Cap Increase and Savings Opportunity
Consumers currently on standard variable tariffs will be hit hardest, with average annual bills rising by £221. However, switching to a fixed-rate deal could save households an average of £316, Uswitch reports. The comparison site has launched a nationwide campaign, sending electric digi-vans with live countdown timers through major cities including London, Birmingham, and Manchester to warn the public.
Ben Gallizzi, energy expert at Uswitch.com, said: “The jump in energy prices might seem easier to bear in summer while heating is off – but a graver concern is this setting the baseline for a further increase in October. If you haven’t switched in a while, you’re almost certainly on a standard tariff, and you will be impacted. Getting off a standard tariff and locking in a fixed rate deal should be an urgent priority for households.”
Low Awareness and Reluctance to Switch
A study commissioned by Uswitch found that 63% of 4,000 energy decision-makers were unaware of the upcoming price cap change. Among those aware, 23% felt powerless over their bills, and another 23% were angered by the hike. A separate poll of 2,000 household energy decision-makers via OnePoll.com revealed that 42% of those on standard variable rates still do not plan to switch before July 1. Reasons include satisfaction with their current plan (30%), hesitation about long-term contracts (22%), finding tariff comparisons daunting (20%), and believing savings would be minimal (18%).
Nearly three in ten (29%) non-fixed tariff users said protection against future price rises would encourage them to switch, while 28% cited an easy process. However, 15% lack confidence in how to switch tariffs.
Urgent Call to Action
Gallizzi added: “For the millions of households on standard tariffs, this is your one week warning that your energy rates are rising on 1 July - unless you act now. There are many fixed deals available that are cheaper than the price cap, with average savings of over £300 on offer making it a crucial move. These deals might not be around for long, so take a few minutes to check online to see what deals are available to you.”
