Lock in a fixed energy tariff to beat the October price rise

Households can save hundreds of pounds on their energy bills if they switch to a fixed deal, as the price cap rises again tomorrow. Ofgem’s price cap has increased from £1,720 to £1,755 today, driven by an increase in the cost of ensuring there is a stable electricity supply.

The cost of electricity will increase from 25.73p per kilowatt hour to 26.35p, while gas will ease from 6.33p/kWH to 5.29p/kWH. Standing charges will jump again, from 51.37p to 53.68p for electricity, and from 29.82p to 34.03p for gas. The regulator has urged households to consider switching to a fixed tariff to cut costs as the weather gets colder.

Fixed energy deals have slowly returned to the market following the energy crisis, and suppliers are offering competitive fixed deals that undercut variable tariffs – those governed by the price cap. Customers can now save over £200 by switching to a fixed deal, with the best deals on the market offering savings of between £98 and £232.

Energy experts and the regulator have called on households to consider switching to a fixed deal if they can. It means households can save money ahead of winter when their energy use increases, but it also protects them from any potential future price rises with the energy price cap.

Energy suppliers regularly publish their energy price cap forecasts, which show that prices in January may fall, but only marginally.

EDF says it is likely to fall to £1,747 but rise again in April to £1,869, while Octopus Energy says it will fall to £1,736 in January and rise to £1,758 in April. While these forecasts are subject to change and should be taken with a pinch of salt, they show that households that opt for a fix today could still make significant savings.

Outfox Energy is offering the cheapest deal on the market, with a tariff priced at £1,523 a year for the average household. It represents a £232 saving on the new price cap. It is closely followed by Outfox Energy’s 24-month tariff, which has an annual average bill of £1,525 and therefore offers a £230 saving. Its 15-month tariffs also offer chunky savings at £228. Of the larger suppliers, Eon Next has a 12-month tariff priced at £1,635, while EDF is offering a 13-month tariff at £1,643.