As the new year approaches, many households are bracing for a slight increase in energy bills due to Ofgem’s upcoming price cap adjustment. Despite the modest 0.2% rise, customers could potentially see an annual bill of £1,758. However, there is some relief as Chancellor Rachel Reeves announced measures in the recent Budget that could lead to savings of around £150 per year for consumers.
To mitigate the impact of rising energy costs, more households are opting for fixed energy deals, with approximately 21 million customers currently on such plans. While fixed deals do not guarantee a stagnant overall bill, they do lock in the unit rate for a specific period, offering some stability in pricing based on individual usage.
Switching to a fixed deal could mean significant savings, with the average customer on a standard variable tariff potentially saving about £230 annually. The process of switching suppliers is quick and straightforward, and customers can explore deals offered by their current provider as well.
Having a smart meter does not hinder the switching process, as it works seamlessly with both traditional and smart meters. Research indicates that there are numerous fixed deals available that are cheaper than Ofgem’s current price cap, providing consumers with a variety of cost-effective options.
Among the top fixed deals available, Ecotricity’s EcoFixed – 1 Year Oct 25 v1 stands out for its competitive pricing and smart meter requirement. Other providers like Outfox Energy, E.ON Next, So Energy, and EDF Energy offer attractive fixed deals with varying contract lengths and exit fees.
Energy Secretary Ed Miliband has urged suppliers to pass on the promised savings to consumers on fixed rates, potentially leading to even lower bills from April onwards. Industry experts recommend considering fixed deals now to benefit from lower prices before the price cap adjustment in January.
Suzanne Edwards, an energy expert at Uswitch.com, emphasized the current value offered by fixed energy deals due to falling wholesale prices. Consumers are encouraged to compare energy deals to potentially secure a cheaper rate and avoid overpaying on standard tariffs.