HOUSEHOLDS are being urged to take ten minutes to switch their energy deal right now – or risk overpaying as the price cap jumps up.
With Ofgem’s energy price cap set to rise on January 1, millions of Brits on standard variable tariffs are sitting ducks for higher bills.
But savvy switchers could pocket a massive £272 saving by locking in a fixed deal before the New Year bells ring.
Currently, around 34 million households are on a standard variable tariff.
This means their bills are dictated by the Ofgem price cap, which limits the maximum cost per kilowatt-hour of gas and electricity.
The cap is currently sitting at roughly £1,755 a year for a typical household – but it will creep up to £1,758 on Thursday.
While a few quid might not sound like much, the real trick isn’t just dodging the rise – it’s beating the cap entirely.
By switching to a fixed tariff, you lock in a set rate for your energy.
If prices stay high, you’re protected.
And right now, the cheapest fix on the market is hundreds of pounds cheaper than the capped rate.
Will Owen, energy expert at Uswitch.com, said: “With the price cap rising again in January, now is a great time to lock in a better fixed energy deal before the hikes take effect.
“Households could save around £272 a year versus the January price cap by switching to the cheapest fixed deal on the market.
“If you haven’t fixed in a year or more, you’re probably on a standard tariff and paying more than you need to.”
Which suppliers offer the cheapest fixed deals?
Households looking to beat the price hike have several strong options, with Fuse Energy currently leading the pack by offering a thirteen-month fixed deal that brings the typical annual bill down to £1,486, which is a massive £272 saving compared to the incoming January price cap.
For those who prefer a standard one-year contract, Fuse Energy also offers a twelve-month fix that saves roughly £249.
Outfox the Market has two competitive tariffs – the ‘Merry Fix-Mas’ and ‘Fix’d Dual’ deals – that could slash your annual costs by £239 and £237 respectively.
So Energy is another strong contender, providing a green energy fixed tariff that offers a potential saving of £203 a year.
While fixing your tariff provides the certainty of knowing exactly what you will pay per unit for the next year or more, there are some important catches to keep in mind before you switch.
Most of these fixed deals come with exit fees if you decide to leave the contract early, such as the £50 per fuel charge from Fuse Energy or the steeper £75 per fuel penalty from Outfox the Market.
Plus, while analysts do not currently expect prices to plummet in the short term, you do run the small risk that if the energy market crashes, you could end up paying more than households on standard variable rates.
Will Owen suggests that running a quick comparison remains the best way to see what is available for your specific needs, helping you lock in a cheaper rate while understanding these potential pitfalls.
Here are the top ten cheapest fixed tariffs available right now:
How can I find the cheapest fixed deals?
To find the best fixed energy deals, start by visiting price comparison websites, which aggregate various offers from different energy suppliers.
The best sites include Uswitch.com and MoneySavingExpert’s Cheap Energy Club.
Enter your postcode and current energy usage details to receive a list of available deals tailored to your needs – it’ll take you less than five minutes.
You’ll then be able to compare the rates, contract lengths, and any additional features or benefits offered by each deal.
Next, visit the websites of individual energy suppliers to check if they have exclusive deals that are not listed on comparison sites.
Sometimes, suppliers offer special promotions or discounts directly to customers.
Compare these offers with those on the comparison websites to ensure you get the best possible rate.
Finally, consider customer service reviews and the overall reputation of the suppliers.
Once you have identified the best deal, follow the instructions to switch your energy provider.
What energy bill help is available?
There’s a number of different ways to get help paying your energy bills if you’re struggling to get by.
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves paying off what you owe in instalments over a set period.
If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.
Several energy firms have schemes available to customers struggling to cover their bills.
But eligibility criteria vary depending on the supplier and the amount you can get depends on your financial circumstances.
For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.
British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.
You don’t need to be a British Gas customer to apply for the second fund.
EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.
Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerable households, such as those who are elderly or ill.
Some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.
Get in touch with your energy firm to see if you can apply.
