More than 285,000 households could be automatically moved onto more expensive ‘default’ energy tariffs this month if they do not switch tariffs or providers when their deals come to an end according to research by comparethemarket.com
In June, there are 166 fixed energy tariffs coming to an end, which could mean an average increase to energy bills of £296.94 per household.
If customers do not switch when their fixed-term deal ends, energy companies are set to benefit from a huge ‘inertia windfall’.
Rolling off fixed term deals onto default tariffs could collectively cost UK households an extra £84 million a year, compared with their current energy costs.
Peter Earl, head of energy at comparethemarket.com, said “Rising wholesale energy costs and the knock-on effects of Covid-19 have been pushing up the price of energy for millions of households. For households on fixed rate tariffs that are due to expire, they stand to needlessly overspend by a considerable amount on their energy bills if they do not take action and are switched to a standard tariff.