"Delayed price increase" for capped deal customers

03 April 2007
Many capped price energy deals will come to an end over the coming weeks, forcing former capped-deal customers to pay up to 51 per cent more on their supplier's standard tariff, SimplySwitch.com has warned.

When the fixed and capped-price deals, which became increasingly popular during three years of soaring energy prices, expire, customers will revert automatically to standard tariffs.

While five Scottish Power online deals are due to expire on May 1st, the British Gas Price Protection plan and a Powergen capped offer end in April.

Customers reverting to standard tariffs "will effectively be subjected to a delayed price increase", claims SimplySwitch.com founder Karen Darby, urging customers to look elsewhere for cheaper offers.

The average customers could be paying up to £300 more annually for their energy once the fixed-rate deal ends, Ms Darby warned.

Meanwhile, she added that entering another capped price deal is no longer the most competitive option, in the aftermath of price cuts from four of the UK's major energy suppliers.

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