How to beat the winter energy price rises

Four of the Big Six companies have announced energy price hikes for the coming winter. We look at the deals that can help you save money before it's too late!

The winter energy price rise season is, sadly, now in full swing. SSE was the first to go, followed by British Gas, npower, Co-operative Energy and ScottishPower. Rises from EDF and E.On are also inevitable.

So if you’re a customer that’s about to be impacted by a price rise or you're holding your breath ahead of your provider announcing price rises, now's the time to ditch and switch.

But which deal should you go for?

Fixed energy deals

Energyhelpline says households can beat the rises by fixing now and grabbing a good deal before they disappear.

With a fixed energy deal you are shielded from any price hikes for a set amount of time. But that peace of mind usually comes at a premium and you are taking a gamble that prices won’t stay the same or even fall.

However, at the moment fixed energy deals are really quite affordable and are offering a real alternative to the traditionally cheaper variable tariffs.

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The cheapest fixed energy tariff comes from First Utility with its iSave Fixed v9 April 2015. It is also the longest lasting out of the cheapest available right now apart from Npower’s Price Fix April 2015.

For a fixed tariff lasting two winters it’s a pretty good deal and only £15 more expensive than the best variable energy deal around right now. However, First Utility's tariff comes with cancellation charges of £30 per fuel so it will cost you to ditch the tariff.

That said prices don’t look set to fall anytime soon; in fact First Utility has said energy bills could soon outpace our mortgage repayments. You can read more in Energy bills could overtake mortgage repayments by 2025.

So your best bet might be to lock into a deal for even longer.

In the past the longest fixed energy deals only lasted around 18 months to two years. Now though you can get deals lasting nearly four years up until 2017!

If you want to take a gamble and fix for longer here are the longest lasting energy deals available right now.

**Savings against an average bill of £1,420 as determined by Ofgem                                                            

EDF Energy and nPower have deals which will shield you from price rises for four winters. However, these longer deals do command a premium and are about £170 more than the cheapest fixed rate deal from First Utility mentioned above.

That said neither have any cancellation charges so you won't lose out if prices fall later down the line.

Going for the cheapest deal

If all you're interested in is getting the cheapest energy deal here the top five going right now.

**Savings against an average bill of £1,420 as determined by Ofgem                                              

The top deal overall is a variable tariff from First Utility called the iSave Dual Fuel v16. It could save you a whopping £265 based on a typical dual fuel bill.

Variable deals, like fixed deals, involve a bit of a gamble. You usually pay less but are betting on prices staying the same or falling in order to feel the benefit. If prices rise you will feel the impact straight away.

It's clear that prices are on the rise at the moment, so a variable deal might not sound like a good bet.

However, First Utility has promised to fix its standing charges and unit rates until March 2014, so you won’t get any nasty surprises this winter at least.

Ditch the standard and switch

Chances are you are probably paying more than you need to for energy at the moment.

Recent figures have revealed that around 70% of households in the UK are on standard tariffs. These are typically poor value and are estimated to cost UK households £2 billion more than necessary.

The price rises announced by SSE, British Gas and nPower will significantly impact those on standard tariffs. Those on fixed deals will have been protected from the move.

If you are on a standard tariff with the other major energy companies (British Gas - Clear and Simple, E.ON - Energy Plan, Scottish Power - Standard, nPower - Standard No Standing Charge, EDF - Standard Variable) the anticipated price rises in the coming weeks could hit your household hard.

To avoid this fate, take action before it is too late and switch.

Switching your gas and electricity tariff can seem like a daunting task but it’s pretty easy and pain free.

There’s lots of useful advice in our guide How to switch energy supplier and you can compare energy deals using our free comparison centre.

*All calculations in the tables are for an average usage dual fuel household paying by monthly direct debit. Average usage as defined by Ofgem is 16,500 kWh pa of gas and 3,300 kWh pa of electricity.

Tables correct as 22/10/2013

Compare gas and electricity prices here now

This article has been updated since its original publication

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