A stark two-month warning has been issued to customers of major UK energy providers including British Gas, EDF, EON, Ovo, and Octopus Energy. Research conducted by Uswitch reveals that nearly 12 million households across the UK risk facing higher energy bills in July due to an impending rise in the energy price cap.
According to the findings, 63% of homes on standard tariffs are unaware that their energy prices are expected to increase from 1 July, while 17% mistakenly believe their bills will decrease. The energy price cap, which limits the rates charged on standard tariffs, is forecasted to rise by £202 per year, pushing the average annual bill from £1,641 to £1,843.
Alarmingly, one in four households on standard tariffs do not know about the upcoming price cap adjustment, and a fifth wrongly expect a drop in energy costs. Ben Gallizzi, an energy expert at Uswitch, warns, “Nearly 12 million households on standard tariffs are sleepwalking towards a 12% increase in their energy bills this July.”
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He further highlights misconceptions about tariff deals, stating that almost half of those on standard tariffs believe they already have the best price, despite the possibility of saving hundreds of pounds by switching to fixed-rate plans.
With two-thirds of households indicating that even a 10% rise in energy costs would negatively affect their finances, Gallizzi urges consumers to take proactive steps. “Now is the time to check available deals online. The cheapest fixed tariffs currently available are 13% lower than the upcoming price cap, making it crucial to lock in affordable rates while possible.”
The pressure on household budgets is evident—66% of respondents say a 10% hike would strain their finances, 10% would need to tap into savings, and around 16% might have to cut back on essential expenses like food or transportation.
In light of these findings, consumers are strongly recommended to review their energy plans promptly and secure fixed deals to mitigate the impact of the forthcoming price increase.