Financial expert Martin Lewis has advised that now may be the ideal time for UK households to switch to fixed-rate energy deals, as several major providers introduce tariffs below the upcoming October price cap. With energy bills set to increase by 10% this winter, locking in a fixed rate could help consumers avoid further hikes.
October Price Cap Increase
Energy regulator Ofgem confirmed that the price cap will rise to £1,717 from October 1, up from £1,568. This means households on standard variable tariffs will face an average annual bill increase of £149. The cap limits the price providers can charge per unit of energy but does not cap total bills, which depend on energy usage.
Fixed-Rate Tariffs vs. Variable Rates
Fixed-rate tariffs offer a consistent price for gas and electricity throughout the contract, shielding consumers from future price hikes. However, those on fixed rates won’t benefit if the price cap falls. Lewis suggests that the cap is unlikely to drop significantly over the next year, making fixed rates an attractive option for many.
Current Fixed-Rate Deals
Outfox the Market, E.on, and British Gas have launched competitive fixed deals. Outfox the Market’s offer is 7% lower than the October price cap, while E.on and British Gas are offering deals 5% below the cap. Consumers can compare these deals using the Money Saving Expert’s Cheap Energy Club to find the best rates based on their location and energy usage.
With wholesale gas prices potentially rising, fixed-rate tariffs may be removed or repriced, so households are encouraged to compare deals before October to lock in savings.
Source: thesun.co.uk
