Consumers Encouraged to Act

Experts are urging households with energy bills linked to the price cap not to “rest on their laurels.” They suggest that families could save over £200 a year by switching to a fixed energy deal. With rising costs, now is the time to take action.

Price Cap Reduction Insight

This week, Ofgem announced a 7% reduction in the price cap across Great Britain beginning in April. This change, significant for default tariff customers, will also impact everyone as the government eliminates green charges from energy bills.

Expert Opinions on Fixed Deals

Consumer advocate Martin Lewis advised that while there’s no “perfect time” to secure a fixed rate, the current moment presents a “pretty good time” to switch. His insights underline the importance of being proactive in managing energy expenses.

Current Market Comparison

According to Lewis, the lowest fixed tariff available is 14% cheaper than the existing cap of £1,758 per year for a typical dual-fuel customer. He emphasized, “If you’re on it, you’re paying too much. If you can get off it, get off it.”

Impact of the New Price Cap

The price cap dictates the maximum a supplier can charge for each kilowatt-hour of gas and electricity, including standing charges. Starting April 1, the new price structure will reduce the average dual-fuel bill by £117, bringing it down to £1,641 a year.

Predictions for Fixed Tariffs

Lewis forecasts a 7%-9% decrease in fixed rates once the new cap is implemented. This means the savings potential when switching to the cheapest fixed deal will remain significant, making it a smart choice for consumers considering their options.

Advice for Household Savings

Richard Neudegg from Uswitch.com echoed similar sentiments, stating that households on the price cap shouldn’t delay. Every household will see adjustments to their bills starting in April, making fixed tariffs all the more appealing for savings in this climate.

Neudegg suggested that families would benefit the most from lower heating rates right now, coupled with future government price reductions. Opting for a fixed deal could lead to substantial savings when they are most needed.

Best Fixed Tariff Deals Available

As of now, the best choice on Uswitch’s comparison list is Fuse Energy, offering a 13-month fixed deal at £1,498, which is £260 below the January price cap. Other notable options include Outfox Energy at £1,519 for a 12-month deal and EDF, which offers a price cap tracker with a £100 discount on standing charges for a year.