British Gas, OVO, EDF, EON, Octopus customers on fixed-rate tariffs 'warned'

Fixed-rated tariffs are set to surge amid the Cost of Living crisis after the latest Ofgem energy price cap prediction, it has been warned. Analysts at Cornwall Insight are predicting the increase in the price cap tariff means the annual bill – based on typical use – will rise.

British Gas, OVO, EDF, EON and Octopus customers will see it hiked £146 taking it up from £1,568 to £1,714. Simon Francis, coordinator of the End Fuel Poverty Coalition, warned: “The reality is that bills will go up compared to today and will be around 65 per cent higher than they were before the energy bills crisis started. But instead of offering help, the Government has axed winter fuel payments to millions and refuses to confirm if the Household Support Fund will be extended.

“Not only do we need to see urgent movement on both these issues, but we need to see action to reduce energy debt and changes in the rules to reset Britain’s broken energy system so it is on the side of consumers.

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“We back the Government’s ambition to bring down bills in the long term through more renewables and a Warm Homes Plan, but it also needs to look at shorter term measures too.” Dylan Johnson, from Future Energy Associates which compiled the reports, added:

“More can and should be done by the energy regulators. Overall, Ofgem must become more proactive in identifying problems with our energy system and more efficient in enacting the necessary changes to protect the most vulnerable in our society.

“For now, Ofgem must implement immediately actionable solutions and not shy away from making the key long-term decisions that can achieve a fairer, greener energy system.” Around three million UK households have opted for fixed energy tariffs, it found.

And the latest Warm This Winter Tariff Watch report shows that the majority have exit fees of more than £100. A snapshot taken in April 2024 found that 76% of fixed tariffs have annual costs above the Ofgem price cap, it warned.

In email exchanges between Ofgem and the Fuel Poverty Coalition, Ofgem stated, “We recognise the impact that shifting some network costs to fixed charges has had on some customers. The time is right to look at what we can do to minimise the impact of this change, particularly on lower-income and vulnerable customers.”