Energy Bills Set to Surge: Households on Standard Tariffs Face Significant Premiums
New research from Uswitch.com indicates that from July 1st, households on standard energy tariffs could be paying substantially more than their neighbours for everyday energy usage. With the price cap predicted to increase by 12% to £1,837, those on standard tariffs will face a 25% higher cost for using electrical appliances compared to homes on the cheapest available fixed deals.
Appliance Costs Add Up Quickly
The disparity translates into tangible extra expenses for common household activities. For instance, each use of a tumble dryer will cost an additional 16p, accumulating to an extra £16 over the course of a year. Similarly, showering will add another £16 annually to the bill, while cooking with an air fryer will increase electricity costs by £11 per year compared to fixed-deal households.
Perhaps most strikingly, using an oven will cost £19 more annually for those on standard tariffs. These incremental costs highlight how everyday energy consumption becomes significantly more expensive without a competitive fixed deal.
Heating Premiums Hit Hardest
The higher cost of gas for standard tariff customers is particularly burdensome. With the average home using 8,625kWh of gas annually for heating, a household on a standard tariff from July will pay £605 for heating. This compares to just £517 for a home on the cheapest fixed deal, resulting in an extra £88 per year.
The difference becomes even more pronounced for high-energy usage households. A high-consumption home would pay £2,209 annually on the cheapest fixed deal currently available, but £2,592 on a standard tariff – a substantial £384 premium each year.
Expert Advice: Check Your Options
Ben Gallizzi, an energy expert at Uswitch.com, emphasised the urgency for consumers to review their energy contracts. "Every time you use an electrical appliance in your home from July, it's likely to cost you 25% more if you're on a standard tariff than someone who's snapped up the cheapest fixed deal," he stated.
"These extra costs add up, and it could mean you're wasting £88 a year on your heating bill, plus an additional £19 annually to use your oven, and £16 more a year just to shower. Take a moment to check online to see what deals are available to you. The best fixed deals available at the moment are £323 cheaper than the predicted July price cap."
The research underscores a growing divide between energy-savvy consumers who secure fixed deals and those who remain on more expensive standard tariffs, with the latter group facing hundreds of pounds in unnecessary annual expenses.
