More than 400,000 customers could see their energy bills rise by an average of £262 per household over the next three months, according to new research.
An analysis by the website comparethemarket.com claims more than 413,000 households could be automatically switched onto more expensive standard variable tariffs (SVTs) in the third quarter of 2019 if they do not switch when their current deal comes to an end.
According to the research, there are 227 fixed energy tariffs coming to an end between July and September and household bills could rocket by an average of £262 if customers go straight on to SVTs.
September could also see the greatest number of customers affected, with 199,000 households expected to be moved on to SVTs if they do not switch, at a combined cost of more than £53 million.
The research comes after Look After My Bills claimed 112 energy tariffs came to an end in June alone, with customers facing an average price hike of around £218 if they were rolled on a SVT.
Meanwhile the number of customers which have switched suppliers is 2,606,747 – up 14 per cent on the same time last year according to Energy UK.
Almost half-a-million energy customers switched supplier in May, with 487,231 switching in total, a figure slightly down (1.4 per cent) compared to the same month last year.
The head of energy at comparethemarket.com, Peter Earl said it “rarely pays” to be loyal to an energy company.
“Once the terms of a fixed rate tariff come to an end, customers could be automatically rolled onto an uncompetitive standard or default tariff, the shocking cost of which could see energy companies rake in an additional £109 million over the next three months,” said Earl.
“Energy company bosses will be planning on this revenue windfall that comes off the back of the energy price cap, which saw the bills for households on standard and default tariffs increase by £117 on average per year from 1 April.
“These are of course customers who were already savvy enough to be on a fixed term tariff in the first place, but unless you stay on top of your bills it is an easy trap to fall into. These figures demonstrate the importance of knowing the date that your tariff is coming to an end and searching and switching to a more competitive tariff to ensure you’re getting the best deal available,” added Earl.