Before committing to the price cap, Britons are urged to consider all energy deals to find if there may be any cheaper alternatives.
British Gas currently has eight fixed tariffs on offer, with four available to new and existing customers.
Almost every household is currently on a standard tariff with prices dictated by the Energy Price Cap. For a typical household paying by direct debit, it’s currently set at £1,834 a year.
It should be noted that the Cap is not a cap on how much one will pay as it only limits standing charges and gas and electricity unit rates.
As rates could prove much higher, Britons can consider fixed energy deals for consistent energy bills.
British Gas offers the Fixed Oct24 v2′ and ‘The Fixed One v25’. These tariffs are for one year with customers paying an average of £1,953 and an exit fee of £75/fuel.
Its two-year fix is slightly higher at £1,975, with an exit fee of £100/fuel, and both one and two-year fixes are available to new customers.
Until recently, none of the fixed-rate deals on the market would have saved households much money so it was unwise to lock in. However, now a handful of energy companies are offering more attractive options.
If people lock into a fixed tariff, the price they pay per unit of power will remain the same for the full term of the deal — usually one or two years.
But if people rely on the price cap, their price per unit will change every three months, causing a lot of uncertainty about future bills.
Last week there were around 22 fixed deals from ten suppliers, according to price comparison website Uswitch.
However, just two beat Ofgem’s energy price cap and allow people to lock in at a lower rate: Octopus Energy’s Loyal Octopus 12-month Fixed and the Fixed Saver 7 from Utility Warehouse.
Octopus Energy’s fixed tariff costs average households £1,818 — a £16 annual saving on the current price cap. It’s only available to existing customers.
Utility Warehouse’s fixed deal costs an average of £1,775 a year, which shaves £59 off a customer’s bills compared to the current energy price cap.
However, in order to get these deals, households have to sign up for other utilities with the company.
EDF offers a slightly better deal with an average customer paying £1,914 for both a one-year and three-year fix. This is available for new and existing customers.
It says the three-year fix ‘offers certainty and protects against rising costs over that period.’
Shell Energy is offering fixed deals for both new and existing customers with a fix until January 2025 for £1,944.
It should be noted that fixed tariffs tend to charge exit fees if someone chooses to leave the contract. This could cost people up to £200 per fuel, depending on the supplier and how long the contract is.
For more information, people can visit U-Switch to find out about fixed deals available to them and if it will be worth it for their situation.
