With the Energy Price Cap expected to rise twice in the next four months, locking into a fixed-rate tariff now could save you up to £150 annually.
There’s finally some good news for households as a string of energy providers are offering deals that will undercut next month's Energy Price Cap hike.
Regulator Ofgem recently announced the maximum amount a typical household pays for their energy will rise 10% to £1,717 per year from October (high usage households will pay more).
But Outfox The Market, E.ON, British Gas and Octopus Energy all have fixed deals that are up to £117 cheaper than this.
And, with market analysts pricing in a further £45 hike to the Energy Price Cap in January, you could be enjoying a tariff that's more than £150 cheaper – on an estimated annual basis – in the middle of the high-usage winter months.
Act fast to bag the cheapest deals
According to Ben Gallizzi, energy spokesman at price comparison site Uswitch, households need to move quickly to secure themselves a top tariff.
“The market’s best-priced tariff right now is from Outfox The Market and costs £1,600 a year for average households," he said.
"If you prefer a big supplier, E.ON Next and British Gas both have tariffs available which can save you a similar amount.”
| Supplier | Tariff | Average annual bill | Saving against October cap (£1,717) | Exit fees | Availability |
| Outfox The Market | Outfox the Price Cap (Oct 24) Fix’d Dual v1.0 | £1,600 |
£117 |
£25 per fuel |
Direct via Outfox The Market* |
| E.ON Next | Next Gust 12m v11 / Next Fixed 12m v26 | £1,626 | £91 | £50 per fuel |
Direct via E.ON Next |
| British Gas | Fixed Tariff 12M v15 | £1,627 | £90 | £50 per fuel | Uswitch, Confused.com, and British Gas |
| Octopus Energy | Octopus 15M Fixed September 2024 v1 | £1,641 | £76 | None |
Direct via Octopus Energy |
Source: Uswitch.com. Prices correct as of 2:30pm, 18 September 2024. Tariffs included within the table are the cheapest 12-month and 15-month, non-bundle fixed tariffs.
*This tariff is subject to availability.
Further hikes are on their way
As mentioned earlier, the Energy Price Cap is set to rise 10% in October, and this probably won't be the last of the increases over the cold months.
Gloomy forecasts from Cornwall Insight suggest the January 2025 cap will rise to £1,762. This would represent a 3%, or £45, increase on October’s cap.
By locking into a fixed tariff now, you'll be ensuring you pay a significantly lower rate than the Energy Price Cap throughout the six cold months between October and March, which make up the biggest chunk of your annual energy bill.
With many households already facing a challenging Winter given that there will be no Cost of Living Payments this time around – and millions of pensioners will lose their Winter Fuel Payments as well – the certainty of cheaper energy bills would provide a very timely boost to finances.
And while we don't yet know how the Energy Price Cap might change come April, it would take an extraordinary (and highly unlikely) drop in price at that point or in July to leave you worse off over a 12-month period compared to a top fix that you could lock into today.
|
PROMOTION
|
||
|