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Should you fix your energy deal now gas prices are soaring again?


Should you fix your energy deal? Experts warn bills could hit £3,000 this year as gas prices soar again and Russia’s invasion could drive them even higher

  • Price cap to rise by 54% for 22 million families on standard tariffs from April 1
  • This will push up the cost of the average household bill by £693 to £1,977 a year 
  • But experts fear that the Russian-Ukraine conflict could drive prices even higher
  • Customers are being urged to keep an eye out for competitive fixed deals 


Millions of households have this week received details of eye-watering energy bill hikes as suppliers prepare to raise charges next month.

Experts are urging customers to keep an eye out for competitive fixed deals amid fears the Russian invasion of Ukraine could drive prices higher.

Last month, energy watchdog Ofgem revealed plans to hike its price cap by 54 per cent for 22 million families on standard tariffs from April 1. This will push up the cost of the average household bill by £693 to £1,977 a year.

Supplies hit: Wholesale gas prices are on the rise again, increasing 40% last Thursday. Experts warn it could mean the average energy bill hits as high as £3,000 later this year

But emails and letters detailing exactly how much more customers will have to pay are arriving thick and fast. Amber Sjollema, 39, discovered last Thursday that her monthly bills will rise from £181 to £250 — an extra £790 a year.

The mother-of-four from Hertfordshire, says: ‘I was horrified when I saw the email from Shell, as I hardly use the heating or put the lights on as it is. I will have to work longer hours and book my children into breakfast club at school.’

Other Money Mail readers were alarmed by how much their suppliers’ fixed daily standing charges — which cover the cost of supplying power to your property — are rising. This means their bills will soar even if they reduce how much energy they use.

Wholesale gas prices are also on the rise again, increasing 40 per cent last Thursday as Russia invaded Ukraine. 

Experts warn it could mean the average energy bill hits as high as £3,000 later this year. But there was a ray of hope for Eon households.

Earlier this week, the energy giant was offering existing customers a one-year fixed deal at £1,977.

This is more than the current price cap at £1,277 — but matches the new cap coming in April and protects against further rises expected in October.

However, the supplier pulled the tariff on Monday night, along with a competitive two-year deal at £2,071, after being inundated with sign-ups.

Lock in: Experts are urging customers to keep an eye out for competitive fixed deals amid fears the Russian-Ukraine conflict could drive prices higher

Lock in: Experts are urging customers to keep an eye out for competitive fixed deals amid fears the Russian-Ukraine conflict could drive prices higher

Kerry Fleming, 45, was lucky enough to snap up the one-year tariff last Thursday. The mother-of-one had been paying £109 a month before her fixed deal ended in January.

The new tariff will cost £188.27, but the family thinks it will save them money in the long run.

Kerry, from Harlow, Essex, says: ‘I fixed into the deal because I could only see prices going in one direction.’

Eon has since launched a one-year fixed tariff for existing customers at £2,270 a year, which works out at £293 more than the new price cap.

But there are no exit fees if prices fall. Any new customers would have to pay £3,158 for a one-year fix, with most deals now costing more than £3,000.

Mark Bennett, of comparison site Energyhelpline, says: ‘As we expect energy prices to continue to climb over the coming months, a deal which on the face of it may seem like poor value today, could actually be worth switching to when you factor in potential future price rises.’

But it is a gamble, and customers may be better off sticking to their supplier’s price-protected standard deal for now. 

The market is also volatile. On Monday, one Big Six supplier hiked a one-year fix by more than £1,000 to over £3,500.

Joe Malinowski, of comparison site TheEnergyShop, says: ‘If wholesale gas prices double from here again, then £3,000 deals start to make sense, but these tariffs are already pricing in a lot of future risk.’

Shell Energy urges any customers struggling with their bills to contact the firm.

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