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| Version 0 | Version 1 |
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| Fixed-rate energy deals 'unfair' | Fixed-rate energy deals 'unfair' |
| (about 10 hours later) | |
| Millions of energy customers have been signed up to "unfair" fixed-rate tariffs that do not reflect current prices, a consumer website has warned. | Millions of energy customers have been signed up to "unfair" fixed-rate tariffs that do not reflect current prices, a consumer website has warned. |
| Energyhelpline.com, which compares prices, says customers on certain deals could be losing out on more than £500 a year, as consumer energy prices fall. | Energyhelpline.com, which compares prices, says customers on certain deals could be losing out on more than £500 a year, as consumer energy prices fall. |
| It says many customers are locked into contracts they have to pay penalties to get out of. | |
| But providers argue fixed-term deals offer customers "peace of mind". | But providers argue fixed-term deals offer customers "peace of mind". |
| Some of the biggest names in energy are cutting prices but Energyhelpline warned that some people were unwittingly paying more than they should for their bills. | Some of the biggest names in energy are cutting prices but Energyhelpline warned that some people were unwittingly paying more than they should for their bills. |
| "There are millions of people in lock-in tariffs today,' said Energyhelpline's co-founder Mark Todd. | "There are millions of people in lock-in tariffs today,' said Energyhelpline's co-founder Mark Todd. |
| "It can be really unfair because many of them don't reflect the market rate and some are up to £532 a year more expensive than the current market conditions. | "It can be really unfair because many of them don't reflect the market rate and some are up to £532 a year more expensive than the current market conditions. |
| "It can also be very confusing to get out of them and they can include big cancellation penalties, up to £100." | "It can also be very confusing to get out of them and they can include big cancellation penalties, up to £100." |
| Pressure | Pressure |
| Over the past year consumer energy prices have fallen by around 8%, but many customers on fixed-price deals have not benefited from the cuts. | Over the past year consumer energy prices have fallen by around 8%, but many customers on fixed-price deals have not benefited from the cuts. |
| Public pressure on energy companies to reduce household bills means prices could carry on falling in the short term. | Public pressure on energy companies to reduce household bills means prices could carry on falling in the short term. |
| With many customers unsure as to whether the savings they could make outweigh the costs of switching over, the advice from consumer groups is to shop around if people are in two minds about the deal they are on. | With many customers unsure as to whether the savings they could make outweigh the costs of switching over, the advice from consumer groups is to shop around if people are in two minds about the deal they are on. |
| "If people are worried about being on fixed-price deals, there's nothing to stop them leaving," says Audrey Gallacher, from Consumer Focus. | "If people are worried about being on fixed-price deals, there's nothing to stop them leaving," says Audrey Gallacher, from Consumer Focus. |
| Energy consumer David Meadows has been on a fixed tariff since 2007 | Energy consumer David Meadows has been on a fixed tariff since 2007 |
| "They may be exposing themselves to a termination charge and therefore they should do their sums, do a price comparison, look at how much they can potentially save and look to offset that against any potential termination fee." | "They may be exposing themselves to a termination charge and therefore they should do their sums, do a price comparison, look at how much they can potentially save and look to offset that against any potential termination fee." |
| British Gas is among the companies to offer fixed-price deals. | British Gas is among the companies to offer fixed-price deals. |
| In a statement, it said: "We offer long-term contracts because, like mortgage customers, many energy users want the peace of mind that fixed products offer. | In a statement, it said: "We offer long-term contracts because, like mortgage customers, many energy users want the peace of mind that fixed products offer. |
| "Customers can at any time choose to exit their deal before maturity upon payment of an administration fee, which is clearly explained to customers when their contract starts." | "Customers can at any time choose to exit their deal before maturity upon payment of an administration fee, which is clearly explained to customers when their contract starts." |
| British Gas customer David Meadows, of Ringwood, Dorset, who has been locked into a contract since 2007, believes energy firms should be more understanding about the dilemmas consumers face. | British Gas customer David Meadows, of Ringwood, Dorset, who has been locked into a contract since 2007, believes energy firms should be more understanding about the dilemmas consumers face. |
| "It appears to me that the energy companies could make this a little bit more comfortable for people by reducing the cancellation charges considerably," he said. | "It appears to me that the energy companies could make this a little bit more comfortable for people by reducing the cancellation charges considerably," he said. |
| "Perhaps £20 would be sufficient to make people concentrate on the decision when they go into the tariff." | "Perhaps £20 would be sufficient to make people concentrate on the decision when they go into the tariff." |
| Energy watchdog Ofgem is looking into the practice of fixed-tariff contracts and is due to report on the issue later this month. | Energy watchdog Ofgem is looking into the practice of fixed-tariff contracts and is due to report on the issue later this month. |