Households could save up to £173 a year by switching to fixed energy deal
Moving tariffs will cushion the blow from the October price cap rise and the increase widely predicted for January With higher energy bills looming and warnings of worse to come in the new year, many households could save up to £173 a year by switching to a fixed deal. Millions of households in Great Britain will face the highest energy charges in three years after it was announced that the…
As energy costs rise, households may save up to £173 annually by switching to fixed energy deals, according to experts. The government's price cap is set to increase again in October, marking the second increase in three months. This rise will impact 22 million households, with gas and electricity prices expected to surge by 4% from October 1.
This increase will push the annual bill for 22 million households on default tariffs to £1,723, based on average usage. However, fixed tariffs can safeguard consumers from these price hikes. Over 11 million homes (35% of the total) are already on fixed tariffs and will be protected until their contracts end. Comparison websites suggest that many could save by switching to cheaper fixed energy tariffs.
For example, Fuse Energy offers a fixed tariff for £1,550 a year, £173 below the October cap. Other suppliers like Co-op Energy, Octopus Energy, E.ON Next, and Ecotricity also provide fixed deals with savings exceeding £100 per year. The government's temporary VAT cut on domestic electricity, reducing the tax from 5% to zero between October and March 2027, will provide an additional £45 annual saving for typical households.
It is essential to consider the remaining contract length and any exit fees before switching. Additionally, using smart meters for off-peak consumption and exploring schemes like the warm home discount can further reduce energy bills.
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