Why

Sunday HeraldMay 11, 2011

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Customers who signed up to low-cost fuel deals could face a pound(s)200 hike in their annual bills as cheap energy plans expire. A number of guaranteed tariffs dating back to 2009, including fixed- priced plans that safeguard households from energy price rises, are due to end this month and next. Npower's SignOnline V18, for example, costs on average pound(s)851 a year. But the plan runs out on June 30 according to uSwitch.com, the price comparison service. The firm's standard energy deal costs pound(s)1054, pound(s)203 more, or a jump of about 20%. Customers who signed up to E.ON FixOnline 7 face an even bigger price hike. The fixed deal costs on average pound(s)806, compared with E.ON's standard package at pound(s)1033, a price leap of pound(s)227.

Energy deals offering some sort of price guarantee have proved popular as household bills have steadily increased. Just under seven million households now have a guarantee, according to the latest figures from Ofgem, the energy regulator. But they need to be alert to any forthcoming changes. Emma Bush, energy expert at uSwitch.com, says: "Customers who flocked to cheap energy deals, including fixed- price plans, could see energy costs rocket as deals expire."

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Why

Some households could, however, save money. E.ON's Track and Save Version 4, for example, costs pound(s)1000 a year on average. It is pound(s)33 a year cheaper than the firm's standard plan. However, it is ...

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