As the new year approaches, many households are bracing for an upcoming rise in energy bills. Ofgem’s price cap is set to increase by 0.2% on January 1, potentially pushing the average annual cost for customers to £1,758. This adjustment, although slight, marks a concerning trend, especially with Ofgem reviewing the cap every quarter.
Despite this, there is hope for savings as Chancellor Rachel Reeves announced measures in the recent Budget that could lead to around £150 in annual savings for consumers. With approximately 34 million customer accounts on standard variable tariffs, the majority could benefit from exploring alternative options instead of accepting the price hike.
A growing number of households are opting for fixed energy deals, with around 21 million already making the switch, according to Ofgem. While fixed deals do not guarantee a static overall bill, they lock in the unit rate for a specified period, offering stability amidst fluctuating energy costs based on individual usage.
Switching to a fixed deal could potentially save an average SVT customer around £230 annually. The process is quick and can be completed within minutes, although the actual transfer may take a bit longer. Additionally, customers may find cost-saving deals with their current provider by exploring available options.
Having a smart meter with the existing supplier does not hinder the switching process. Whether it’s a first-generation or SMETS2 meter, changing energy suppliers remains straightforward. Research conducted by Uswitch.com for the Mirror reveals that there are 26 fixed deals cheaper than Ofgem’s current price cap.
Among the top deals is Ecotricity’s EcoFixed – 1 Year Oct 25 v1, requiring a smart meter and costing an average of £1,527 annually. Other competitive options include Outfox Energy’s Fix’d Dual Dec25 12M v1.0 and So Energy’s So Kings One Year Green tariff, offering attractive rates and exit fee structures.
Energy Secretary Ed Miliband has urged suppliers to pass on the promised £150 average savings for fixed-rate customers, further reducing energy costs starting from April. By switching now, consumers can take advantage of lower prices during peak energy usage months. Suzanne Edwards from Uswitch.com emphasizes the value of fixed deals in light of falling wholesale prices, urging households to consider securing a better rate before the impending price cap increase in January.