How your energy bill can almost DOUBLE if you don’t switch when your deal ends
Once a deal ends customers are automatically rolled on to 'standard variable tariffs' costing up to £350 more a year, unless they switch
ENERGY firms have been accused of clobbering loyal customers by changing them almost double the price once their one-year fixed-rate energy deal come to an end.
Gas and electricity suppliers automatically roll customers onto ‘standard variable tariffs’, which can be up to £350 a year more expensive, according to a report by .
It also said that some of the biggest price increases are handed out by the UK’s big six energy suppliers - British Gas, nPower, EDF Energy, Scottish Power, SSE and E.on.
It looked at the difference between a fixed deal and standard variable tariff, based on prices in the Eastern region, the largest in the UK.
The analysis was conducted by Octopus Energy, a London-based newcomer to the energy market launched in April this year.
Greg Jackson, Octopus Energy's founder, said: “They [Energy suppliers] automatically put customers on to their ‘standard variable tariffs’, which are always much more expensive.
“It’s where energy companies - particularly the big six but other suppliers tool - offer extremely attractive teaser prices, usually advertised on price comparison websites but elsewhere as well.
“The consumer switches to that great deal thinking that they are going to be saving a lot of money.
“What the company will know and the customer might not necessarily know is that most customers are not going to switch at the end of the year.
“It also knows that it will ramp the price up and squeeze those customers.”
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Standard variable tariffs vary from company to company are rarely, if ever, promoted as they are usually more expensive than the one-year tariffs.
Energy firms must inform customers when they are coming to the end of an agreement.
If customers do not act on it then they will automatically be put on the cheapest standard variable tariff.
Lawrence Slade, chief executive of Energy UK, a trade body that represents energy firms, said:
"It is important for customers to shop around for the best deal for them especially before their contract ends. The market is as competitive as it has ever been with over 40 suppliers offering many deals under £900.”
A spokesperson from Scottish Power said: “At the end of any fixed-term tariff, we notify the customer that the tariff is coming to an end and provide the customer with tariff options available to them.”
A spokesperson from nPower said that it often has short term deals with customers to encourage switching.
It is also “proactive in telling customers that their fixed product is ending and giving them other options to choose from, including highlighting the cheapest tariff available to them.”
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