Millions of households are being encouraged to review their energy tariff after the latest price cap increase pushed up bills for those on standard variable deals. Since the new energy price cap came into force, many households have seen the cost of their gas and electricity rise by 13%.
Fixed tariffs offer savings of up to £280
Experts say switching to a fixed tariff could cut annual bills by as much as £280. According to comparison site Uswitch, there are currently 25 fixed-rate energy deals available that are cheaper than the current price cap, giving households the opportunity to lock in lower prices.
The cheapest deal currently on the market is a 15-month fixed tariff from Outfox Energy, which costs an estimated £1,383 a year for a typical household. That works out at around £280 less than the current price cap.
Expert advice on switching
Ben Gallizzi, energy expert at Uswitch.com, commented: "With the new July price cap now in effect, households that have stayed put on a standard variable tariff could be paying hundreds of pounds more than they need to over the course of a year. The good news is the energy market is competitive right now, with fixed tariffs offering real value."
He added: "With 25 deals currently priced below the price cap – and the cheapest offering savings of £280 – there is plenty of choice for households wanting to pay less for their rates and have protection from any future increases. Running a quick energy comparison will show you exactly what’s available for your household, based on your personal usage and is the best way to find a cheaper rate."
Most households still on standard variable tariffs
Most households are still on standard variable tariffs, meaning they automatically move in line with the energy price cap unless they choose a different deal. Anyone considering switching is advised to compare tariffs based on their own energy usage to find the best available rate and decide whether a fixed deal could help reduce their bills while offering protection against future price rises.
