Wednesday 23 January 2019 8:17 am | Updated: Monday 03 June 2019 3:11 am

Households could lose hundreds of pounds by failing to switch as their energy plans run out this month

Hundreds of thousands of customers could have up to £302 added to their energy bills each year if they don’t switch from plans which are set to end in January.

Switching service Uswitch warned that it has identified around 200,000 households on 20 different energy plans which are set to conclude this month.

If customers do not change their supplier or plan they could face average increased of £140 per year by being moved to a standard variable tariff (SVT), the company said.

“Those affected should have received a letter over the Christmas period telling them their bills will go up, but understandably there are other distractions at that time of year. However, it’s vital they now take action and lock in a new fixed deal,” said Rik Smith, an energy expert at Uswitch.

Households could also face another blow in April when Ofgem promises to review the new energy price cap.

The cap, which limits bills at £1,137 per year for the average user, is expected to be raised by around £80-£100 when Ofgem reports, Uswitch said.

Customers of Together Energy and Peterborough Energy will face the highest price hikes, while British Gas and an Scottish Power-supplied households will be hit the worst of those with the big six energy companies.

“Of all the tariffs ending this month, six in ten are priced under £1,000 per year – but increases in wholesale costs mean there are now only six tariffs on the market priced under £1,000,” Uswitch said.

“However, there is still plenty of choice and savings to be made, with 147 tariffs cheaper than the price cap that people can switch to today.

“And Ofgem rules allow customers to switch suppliers without paying exit fees 49 days before their plan end date, so households affected can switch and save now without worrying about charges for leaving early.”