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Debt problems may face consumers coming off fixed-price energy plans

Debt problems may face consumers coming off fixed-price energy plans

- Thursday, 18 February 2010

Many consumers face the risk of needing debt help as their fixed-price energy plans come to an end, one organisation has warned.

Price comparison site uSwitch.com claims that customers could be risking up to a £258 rise in energy bills as a number of price guarantee plans are due to expire in March.

Some 4.6 million households are on fixed or capped energy plans, according to the organisation.

The predicted bill shock is due to the dramatic increase in energy bills from when consumers first signed up to a fixed plan four years ago.

An average household energy bill in 2006 was just £735 per year, while current bulls are typically £497 or 68 per cent more expensive.

Energy expert with uSwitch.com Thomas Lyon said consumers who were about to lose the protection of a fixed-price plan are facing a completely different market.

"With energy prices so high consumers face an important decision and we would urge them to take the time to shop around," he said.

"Online energy plans consistently offer the lowest prices, coming in at around £300 a year cheaper than standard tariffs and also £217 cheaper than the average fixed plan about to expire."ADNFCR-2300-ID-19622736-ADNFCR
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