Energy payments will go up for almost half a MILLION households on the finish of May – except they take motion

Energy experts have warned that nearly half a million households could see their energy bill rise at the end of next month, if they don’t take action soon.

Uswitch has warned that 79 fixed 12-month energy tariffs will finish by the end of May, meaning 418,000 households will be out of contract. 

Unless they switch to a new fixed tariff, they will be automatically rolled onto their supplier’s standard variable tariff which is set by the Ofgem price cap.

The price cap went up last week, meaning the typical household will pay £111 more annually or £1,849. 

But by opting for another fix they could potentially save £259 per year, as we explain below.  

Bill warning: Households could pay hundreds more if they don’t switch to another fixed deal

There are a particularly large number of customers coming to the end of fixed energy deals at the moment, Uswitch said.  

Fixed deals started returning at this time last year as the wholesale energy market calmed down after months of volatility, which resulted in an unusually 471,870 consumers switching in April and May 2024. 

Most took one-year fixed deals, which are now coming to a close.  

Is it worth taking a fixed energy deal now?

Households need to weigh up whether it is worth riding the wave of an increasingly volatile energy market, or fixing their deal.

Households that fixed in April 2024, when the price cap was set at £1,690, would find themselves paying £200 more if they moved back on to today’s price cap. 

The cheapest fixed deal available this time last year was a 12-month tariff from British Gas costing £1,654. 

Households falling off this deal onto a price cap tariff would immediately start paying £195 extra a year.

However, if billpayers choose to move to another fixed deal they could save around £259 per year compared to the default tariffs, says Uswitch.

What are the cheapest energy deals?

The cheapest 12-month deal is currently from Outfox the Market, costing £1,580 a year for the average dual-fuel household.

If you want to fix for a longer period Outfox the Market offers a £244 saving for both 18 and 24-month deals, at £1,605 a year.

Households will need to move quickly though, as the average price of fixed deals could rise in the coming weeks, Uswitch warns. 

Elise Melville, energy expert at Uswitch says: ‘Households who signed up for a fixed energy tariff last spring should get a new deal as soon as possible, as they could save significant sums compared with a standard tariff.

‘When wholesale energy prices rise, the cost of deals on the market usually increases at the same rate. But suppliers are currently fighting to win customers and this means big savings on offer.

‘It’s unusual for such well-priced deals to be available, and we believe that households may have a relatively short window of opportunity to grab one before they disappear.

‘If you’re on a standard tariff, now is the time to protect yourself from upcoming price rises. Run a comparison to see what deals are available to you.’