Energy customers could pay price for leaving fixed rate deal

Over the past couple of years many energy customers in the UK have decided to opt for a fixed price deal with their energy firm in the hope of avoiding soaring energy costs. These fixed price deals are set for a specified period of time, but in some cases when the deal expires the energy provider rolls the customer onto another fixed price deal automatically if they do not hear from the customer to say otherwise.

Officials are now concerned that customers who want to get out of a fixed rate deal with their energy supplier in order to switch to another provider could face crippling financial penalties with some facing fees as high as £200 simply for wanting to get out of the fixed rate deal that they are locked into. The Fixed Price 2015 tariff from energy giant EDF is the one that comes with the highest penalty, with customers being charged up to £200 for leaving the deal earlier than the expiry.

Experts are now urging consumers to make sure that they keep an eye on their fixed rate deals, and to make the switch when they get the chance rather than risking being rolled over to yet another contract and then getting stuck on another deal for even longer. British Gas charges up to £100 for exiting these deals early, Scottish and Southern Energy charges up to £75, and Scottish Power charged up to £50.

One official said: “This is a trap that people really should be aware of. If you are on a fixed rate deal, make sure you know when it comes to an end and switch accordingly. If you forget to do this in time, you will either end up stuck on a tariff that may not suit you and find yourself spending hundreds of pounds to get out of it. This is yet another reason to compare energy prices and tariffs on a regular basis, and make sure you switch as and when is necessary.”

Tags: contract, fixed price deal, customer, energy supplier, tariff, uk, provider, Price 2015 tariff