Shell Energy is allowing customers to switch back to a fixed tariff after the Government announced it will scale back its support for households.
Those who moved from their fixed tariff to a variable tariff after the launch of the Energy Price Guarantee will have the option to move back.
It comes after the Government confirmed the Energy Price Guarantee - which “freezes” bills for the typical household at £2,500 a year - will now only last six months, instead of two years.
Instead of it being a universal scheme, there will be targeted support likely for the most vulnerable - meaning anyone not offered additional support faces potentially hideous energy price rises from next year.
Energy bills are now currently forecast to hit £3,207 next April, according to the latest predictions from analysts at Cornwall Insight.
Shell Energy said customers who were on its July 2024 fixed tariff, priced at £2,745 a year for the typical household, will be able to move back to this deal.
These customers will be contacted and given the option to move back to the fixed tariff on the same terms as before.
But customers will only have until the end of the month to decide - and at the moment, we don’t know for sure what further support could be given to households beyond April.
If prices do rise sharply, and your household doesn't end up receiving additional help, then anyone who does choose to revert back to the fixed rate tariff with Shell would be saving cash.
The Energy Price Guarantee will end in its current form in April 2023.
Tony Keeling, CEO of Shell Energy, said: “This is about fairness and putting the customer first. Nobody should lose out on a fixed tariff they previously held now that the situation has changed and the Energy Price Guarantee comes to an end in April.”
The update from Shell comes after households were warned there could be three-hour planned power cuts this winter if there is a shortage of gas.
This was the worst-case scenario presented in a report last month - and system operators insist it is “unlikely” we’ll run out of power.
There is also a new Demand Flexibility Service being tested, to see how it would work if the country needs to protect its gas supplies.
