No, it’s not an April Fool! Unfortunately, the rumours about another energy price cap rise are true!
If you are on a standard variable tariff, you may want to consider switching to a fixed-term tariff to lock in a lower rate. However, it is important to compare the different tariffs available before making a decision.
Martin Lewis, The Money Saving Expert confirms that the April 1st price rise predictions given by 4 leading energy providers and analysts at the beginning of the year are now almost inevitable. It’s now just a question of knowing how much this will be…and which one of the companies will have got their guess right!
EDF, British Gas, E.on Next and Cornwall Insight have each given an energy price cap rise forecast for the quarterly period of April 1st to June 30th. These range from 3, 5, and 6% meaning that yearly bills for a typical energy-using household could now rise from the current £1738 to between £1784 and £1847 a year!
So, what can we do as a consumers to protect ourselves against this worrying trend in energy price cap rises? Here at Energy Advice Helpline we say ‘fight back and fix now’!
Fight Back and Fix Now!
Based on the variable energy price cap currently in place, consumer magazine, Which reports that consumers are paying £1,261, £1,738, and £2, 435 per year depending on whether they are low, medium, or high energy users. Comparing energy deals at the end of January, they identified 28 tariffs that are below the current January-March energy price cap and which could save a typical household more than £77 a year.
However, it’s important to note that these figures do not factor in future price cap rises, such as the one expected on April 1st. For this reason, these savings may change…and could even increase!
Knowing that these are financially uncertain times for many households, Which advises paying slightly more for a tariff that doesn’t charge high fees for an early exit if your circumstances change during the length of your contract. They also highlight that the cheapest tariffs usually require customers to pay by direct debit. Although there are tariffs available that allow customers to pay when they receive their bill, these tend to be more expensive overall.
The Top 5 Fixed Tariff Deals According to Which Magazine
So, what exactly are the current best energy deals for your home? And just how much will you be paying if you’re a low, medium or high energy user?
According to Which magazine, the top 5 fixed energy tariffs are:
1. Ovo Energy: 1 Year Fixed + Boiler Cover 09 January 2025
Customers pay £1,154 (low), £1,628 (medium), £2319 (high). The price is fixed for one year and there is a £50 early exit fee. To be eligible, you must also sign up for paperless billing and purchase 12 months of Ovo boiler cover that is currently priced at £90.
2. Outfox the Market: Fix’d Dual Jan25 v3.0
Customers pay £1,193 (low), £1,637 (medium) and £2,281 (high) per year. This is a one year fixed deal with a £50 exit fee. You must also sign up for paperless billing.
3. Outfox the Market: 18 – Month Fix’d Dual Jan25 v6.0
Customers pay £1,208 (low), £1,659 (medium) and £2,315 (high) per year. The tariff is fixed for 18 months, has a £50 early exit fee and requires a sign up for paperless billing.
4. E.ON Next: Next Fixed 16m V2
Customers pay £1,208 (low), £1,661 (medium) and £2,321 (high) per year. The tariff is fixed for 16 months and there is a £50 per fuel early exit fee if you switch supplier.
5. Outfox the Market: 2-year Fix’d Dual Jan 25 v5.0
Customers pay £1,208 (low), £1,662 (medium) and £2,316 (high) per year. The tariff is fixed for 24 months, has a £50 per fuel exit fee and requires a sign up for paperless billing.
Are You a Low, Middle or High Energy Using Household?
Sometimes it’s difficult to know which annual energy user bracket your household falls into. Knowing this information can help you to estimate future bills more accurately. To help with this calculation, Ofgem estimates:
- low users typically consume 7,500kWh of gas and 1,800kWh of electricity,
- medium users typically consume 11,500kWh of gas and 2,700kWh of electricity.
- high users typically consume 17,000kWh of gas and 4,100kWh of electricity.
Check the Small Print!
When changing from a variable price-capped tariff to a fixed-term tariff, it’s essential to read the terms and conditions beforehand. For example, when choosing Ovo Energy’s tariff, although there are annual savings to be made, the contract stipulates that a customer must buy boiler cover to qualify. This condition will affect actual savings made, so it’s important to weigh up whether the deal is right for you…and whether you actually need the cover! Important terms and conditions to check include:
- Do you need to pay exit fees if you decide to switch companies within the length of your contract. If so, how much are these?
- Does the tariff require a smart meter?
- Do you prefer to receive bills in the post? Some contracts only provide paperless billing.
- Do you need to buy other services from the company to qualify? If so, does this cut into your savings?
To Switch or Not to Switch…That is the Question
Here at Energy Advice Helpline, we want to help every household make the best decisions regarding choosing their energy tariffs and lowering their bills.
In these uncertain times of rising energy price caps, locking into a fixed energy deal can offer some financial stability. However, it’s vital to be aware of a tariff’s terms and conditions before switching. This will help make sure you attract only genuine savings through your new energy deal and that you make the best available choice for your household and personal circumstances.
Did you know there are also Government grants available that can help households reduce their bills even further by installing solar equipment, heat pumps, and insulation free of charge? Click on the link below for more information.
Flexible monthly payment solar packages that include panels and battery storage are also available for as little as £50, with no upfront fees. Click the button below for more information.
