Householders are being urged to wait before signing up to new fixed-term deals for their gas and electricity – because it may actually leave them out of pocket. Currently, customers are not benefiting from a fall in energy costs – but bills are expected to be lower from July.
And if households switch too soon, they could be locked into higher prices costing them hundreds of pounds more than necessary, energy experts are warning.
Cost-of-living champion Greg Marsh, CEO of household bills manager Nous.co said: “Customers need to be wary.
“For most people, a fixed deal is not worth it and they risk being left out of pocket.
“Families should already be benefiting from falling energy costs – but they’re not.
“We’re calling on companies to bring back good value fixed deals right away.
“Energy Secretary Grant Shapps should be working hard to encourage proper competition and stop households being ripped off.”
Mr Marsh pointed out wholesale energy costs have fallen in recent months while energy producers have seen bumper profits.
But many providers have failed to offer deals making it worthwhile to switch.
Nous.co’s latest projections suggest annual energy bills for a typical dual fuel household will be £2,169 over the next 12 months. A fixed deal would help households wanting to know what their bills will be for a year.
But the warning to be cautious comes after Ovo Energy launched a deal for customers.
It works out at nine percent less than the energy price guarantee of £2,500 in place until June 30 with average households paying just £2,275 a year with Ovo.
Mr Marsh said: “Energy bills are forecast to start dropping in July, so for a fix to be cheaper in the long run for a typical family it has to be at least 14 percent – or £332– lower than the energy price guarantee, not the nine percent, or £225 Ovo, are offering.
“Of course, events can mean these predictions are not 100 percent accurate. “
And he added there are options to save without fixing and households could save up to £300 through membership of Nous.co which is offering a free trial.
