Close to 12 million UK households are set to see their energy bills increase from July 1 following a projected rise in the price cap.
The increase is linked to a forecast 12 per cent rise in the Ofgem cap, with typical annual bills expected to climb from £1,641 to £1,843.
Research by Uswitch suggests many households are unaware of the changes.
The findings indicate 63 per cent of homes on standard tariffs do not realise prices are expected to increase, while a further 17 per cent believe their bills will fall.
Around two‑thirds of households said a 10 per cent rise would affect their finances, with one in 10 saying they would need to use savings to cover higher costs.
Another 17 per cent said they would reduce spending on essentials such as food and transport.
Younger households reported greater financial pressure.
Nearly a fifth said they would need to find additional income to manage rising bills, and around 11 per cent expected to fall into debt.
Energy bills to jump £202 in July as Ofgem price cap rises 12 per cent
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More than a quarter of those on standard tariffs said they were unaware of any upcoming change to the price cap, while 19 per cent believed costs would decrease.
The research also found that around half of households on standard tariffs believe they are already on the best deal.
As a result, 47 per cent said they are not planning to switch tariffs, and only 13 per cent are considering moving to a fixed deal.
Analysis indicates that fixed tariffs could save a typical household £233 compared with the projected July cap, with several fixed deals currently priced below standard variable tariffs.
LATEST DEVELOPMENTS
Energy price cap over the years | ONSAround 30 fixed offers are available, with terms ranging from 10 months to two years.
Ben Gallizzi said: “Nearly 12 million households on standard tariffs are sleepwalking towards energy bill hikes, with their prices predicted to increase 12 per cent in July.”
He added that “almost half of those on standard tariffs mistakenly believe that they’re on the best deal, despite the fact that the average home could save hundreds of pounds with a fixed deal.”
Mr Gallizzi said: “Two‑thirds of households say even a 10 per cent increase in their energy bills would hit their finances, so now’s the time to act to protect yourself from higher costs.”
The cheapest fixed deals are currently around 13 per cent lower than the projected July price cap.
Forecasts suggest energy costs could remain elevated into autumn and winter, when household usage typically increases.
The announcement comes after weeks of pressure on the Treasury to set out how it will shield firms from the latest surge in energy costs linked to the conflict in Iran.
Business groups have repeatedly warned that manufacturers renewing contracts this spring are facing steep increases, with some describing the situation as a looming crisis.
The IMF has also urged Governments to avoid broad subsidies, backing a more targeted approach to support as global energy markets remain volatile.