UK households are being urged to grab a £111 boost before Friday by switching to a cheaper energy tariff. MoneySuperMarket has highlighted a market-leading offer from energy supplier Fuse, which undercuts the current price cap by 6.7%.
Exclusive deal available until Friday
MoneySuperMarket has secured an exclusive energy deal with independent supplier Fuse Energy, which is only available until 11.59pm on Thursday, August 20. The Fuse Energy August 2026 Fixed (18m) V5 comes at an average annual cost of £1,522 a year, saving households £111 a year (6.7%) against the current energy price cap, and giving households certainty against energy price volatility for the next 18 months.
Laura Hinton from MoneySuperMarket Energy said: “Despite the large-scale disruption to wholesale energy costs, there are still fixed deals available that beat the current price cap.”
Energy price cap expected to rise
And with energy bills expected to rise even further in October by an estimated 4%, savings could rise even higher, as the deal is fixed for 18 months, locking in prices at a pre-October price cap rate. MoneySuperMarket Energy is urging households to check if they could save by fixing their energy tariffs this week, as tensions over the Strait of Hormuz continue to drive volatility in wholesale energy markets.
It said: “As of today, the price of crude oil has risen to $86 a barrel, up from around $69 a barrel at the beginning of July, with experts predicting a rise in the Ofgem Energy Price Cap in the next announcement on Wednesday 26 August.”
Forecasts point to highest bills in three years
Household energy prices are set to increase again to the highest level for three years heading into winter, according to new forecasts. The energy price cap is currently expected to increase by 4% in October compared with the current rate, experts at Cornwall Insight said. Analysts said the increase is driven by continued uncertainty linked to the Middle East conflict, which has pushed wholesale energy prices higher.
Cornwall said it expected a typical household to be facing an annual bill of £1,729, up from £1,663, based on Ofgem’s updated definition of a typical consumer, which came into effect from July to reflect falling household energy use. It said this would be the equivalent of £1,941 per year based on its previous calculations, up from £1,862 currently. It would mark the highest average bill since July 2023.
VAT removal partially offsets rise
Cornwall said the expected increase in October will be less than otherwise expected because of the proposed removal of VAT from household electricity bills. The Prime Minister previously said this would knock around £45 off the annual Ofgem price cap from October. However, the experts said the recent swing in global energy prices has more than offset the downward impact of the VAT policy.
