Forecasts predict the January energy price cap will jump by 28%, increasing the annual bill for a typical household on a standard variable tariff from £1,723 to £2,211. Ofgem is set to announce the official cap on or before November 25, and households are being advised to compare fixed deals that could save them up to £421 from January.
Why Prices Are Rising
The primary drivers behind the spike are the ongoing conflict in the Middle East and constraints across oil and gas supply chains. Market data forecasting the rise points to a significant increase in energy rates for millions of households.
According to uSwitch, a UK-based price comparison and switching service, households should start looking at energy tariffs and compare them against the forecast for January. This will reveal the likelihood of what will happen to their bills starting in 2027.
Fixed Deals Offer Savings
Sabrina Hoque, energy expert at uSwitch.com, said: "In a few weeks' time we’ll know exactly where prices are headed, but all forecasts point to a staggering increase in energy rates from January."
"The prices of some fixed deals have come down slightly in recent days and sit just above current price cap levels, yet still significantly cheaper than the outlook for January."
"The cheapest deal on the market right now could save a typical household £421 a year compared with the predicted rates, while also offering certainty over cost and protection against any further increases."
Cheapest Fixed Tariffs Compared
uSwitch has compared fixed energy deals now against January's price cap forecast. Their comparison shows that Fuse Energy's 18-month fixed energy tariff costs £1,790 annually - £421 below the predicted January price cap.
Meanwhile, E.ON Next's 12-month tariff comes in at £371 below the cap, and Fuse Energy's is £370 below. Sainsbury's Energy's 12-month tariff also offers £369 below the predicted cap, while Outfox Energy offers £342 below.
The 10 cheapest fixed energy tariffs are:
- Fuse Energy - 18 months - £1,790 per year (£421 below predicted cap)
- E.ON Next - 12 months - £1,840 per year (£371 below predicted cap)
- Fuse Energy - 16 months - £1,841 per year (£370 below predicted cap)
- Sainsbury's Energy - 12 months - £1,842 per year (£369 below predicted cap)
- Fuse Energy - 12 months - £1,863 per year (£348 below predicted cap)
- Outfox Energy - 24 months - £1,869 per year (£342 below predicted cap)
- Outfox Energy - 18 months - £1,869 per year (£342 below predicted cap)
- E.ON Next - 24 months - £1,878 per year (£333 below predicted cap)
- EDF Energy - 25 months - £1,882 per year (£329 below predicted cap)
- Sainsbury's Energy - 24 months - £1,916 per year (£295 below predicted cap)
Households are advised to run an energy comparison to find the cheapest deals and check the rates against the January forecast for a clearer view of the savings available through switching.
