As the new year approaches, households are bracing for an upcoming rise in energy bills set by Ofgem’s price cap. The increase, albeit modest at 0.2%, is still a concerning trend that could see the average customer paying £1,758 annually. However, there is a glimmer of hope with potential savings of around £150 per year from recent measures announced in the Budget by Chancellor Rachel Reeves.
To combat the impending price hike, more households are opting for fixed energy deals, with approximately 21 million customers currently on such arrangements. While fixed deals do not guarantee a stagnant overall bill, they do lock in the unit rate for a specified period, offering some stability in costs based on individual usage.
For those still on standard variable tariffs, switching to a fixed deal could lead to significant savings, with an average potential yearly saving of £230 for customers on SVTs. The process of switching suppliers is quick and straightforward, and even existing smart meter users can seamlessly transition to new deals without hindrance.
Various competitive fixed deals are available in the market, with options like Ecotricity’s EcoFixed and Outfox Energy’s Fix’d Dual Dec25 presenting attractive average yearly costs below Ofgem’s current price cap. By exploring these alternatives and considering a switch now, consumers can potentially secure lower energy costs and benefit from reduced bills starting in April.