ENERGY firms are charging up to £800 more than the energy price cap, as it emerges new fixed rate deals are hitting the market at high prices.
Gas and electricity prices are soaring as Government ministers admitted spiralling costs meant some families will face a choice between “eating and heating” this winter.
According to EnergyHelpline, the most expensive fixed deal on the market currently is a hefty £2,125 a year. The same provider does have cheaper tariffs, however.
A number of new fixed deals have also emerged this week with prices considerably higher than the energy price cap.
Martyn James of consumer rights firm Resolver, said: “The energy price cap was introduced to stop firms profiteering, but that doesn’t work when wholesale gas prices triple.
“This is a nightmare scenario for households worried about their bills and budgets."
Many households were already panicking about an increase in the energy price cap at the end of the month, which will add an average of £139 a year to household bills.
Customers hoping to lock in a better deal before the increase have been left disappointed as providers have been pulling their best fixed tariffs from the market.
According to EnergyHelpline, the cheapest fixed deal currently available is from Green Energy at £1,207 a year, while the cheapest variable deal is £1,081 a year from Utility Warehouse.
Energy providers are charging up to £650 more than the price cap as they grapple with soaring costs.
Some energy firms are charging up to £1,923 for a year of gas and electricity - £646 more than the £1,277 price cap coming in on October 1 and £785 more than the £1,138 cap now.
This cap limits the amount firms can charge the average customer on their default gas and electricity tariffs - usually variable-rate deals. But it does not apply to fixed-rate deals, which are normally the more expensive option.
Energy companies are struggling with the rising price of gas, which has already driven some to the wall.
According to MoneySupermarket, the cheapest variable deal for a two-bedroom flat is £1,140 a year, from The Utility Warehouse. The cheapest fixed rate is £1,313, from British Gas.
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