A study of 4,000 energy decision-makers found that nearly two-thirds are not aware of the upcoming energy price cap taking effect on 1 July. Among those who are aware, 23% say the price hike has left them feeling powerless over their bills, and another 23% are angered by it, according to research commissioned by Uswitch.
Bill Increase Could Reach £221 Without Action
Bill payers could face a £221 increase if they do not switch to a fixed energy tariff within the next week. The government's price cap will see households pay 13% more for their bills, but this can be avoided by running a quick comparison and switching to a fixed deal.
In a separate poll of 2,000 energy decision-makers via OnePoll.com, 42% of those on a standard variable rate—who will be hit by the price rise—are not considering switching to a fixed rate before 1 July. Exactly three in 10 are happy with their current plan despite paying more, while 22% are hesitant about committing to a long-term contract.
Barriers to Switching
Two in 10 find comparing tariffs daunting, and 18% wrongly believe switching to a fixed tariff will result in nearly no savings. However, nearly three in 10 (29%) of non-fixed tariff users say protection against future price rises would encourage them to switch, while 28% would be swayed if the process were easier. Some 15% lack confidence in how to switch energy tariffs.
Uswitch Campaign Warns of Impending Rise
Energy comparison website Uswitch has launched a campaign with electric digi-vans displaying a live countdown timer to 1 July, traveling through major cities including London, Birmingham, Manchester, Liverpool, Llandudno, Edinburgh, Newcastle, Leeds, Sheffield, and York.
Ben Gallizzi, an 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.”
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.”
