Bill payers have just one week to avoid a £221 annual bill hike by switching to a fixed energy tariff before the government's price cap rises by 13% on July 1, according to energy comparison site Uswitch.
Price Cap Rise and Savings Potential
The price cap increase, the largest since the energy crisis, will affect households on standard variable tariffs. Uswitch warns that those who do not switch could face significant financial strain. However, locking in a fixed deal now could save an average of £316 per year.
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.”
Steps to Avoid the Hike
Uswitch recommends two key steps: first, run a quick comparison on an energy comparison website to find the best fixed tariff for your usage; second, switch online to lock in rates. The process is simple and can protect against future price rises.
To raise awareness, Uswitch has deployed electric digi-vans with a live countdown timer across major cities in England, Scotland, and Wales, including London, Birmingham, Manchester, Liverpool, Llandudno, Edinburgh, Newcastle, Leeds, Sheffield, and York.
Public Awareness and Hesitation
A Uswitch survey of 4,000 energy decision-makers found that 63% were unaware of the upcoming price cap change. Among those aware, 23% felt powerless and another 23% were angered by the hike. A separate poll of 2,000 households revealed that 42% of those on standard variable rates are not considering switching before July 1, with 30% content with their current plan despite higher costs, and 22% hesitant about long-term contracts.
Barriers to switching include 20% finding tariff comparisons daunting, and 18% incorrectly believing savings would be minimal. However, 29% of non-fixed tariff users said protection against future price rises would encourage them to switch, while 28% would be swayed by an easy process. 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.”
