Customers of major energy providers, including British Gas, E. ON, EDF, and OVO, are being advised they can save a significant £148 just by making one straightforward adjustment.
UK households can lock in the savings as energy bills surge upward with a fresh rise set for January; switching to a twelve-month fixed energy tariff is recommended. With the new year comes an uptick in household energy bills by 1.2% starting Wednesday, following a decision by the regulator, Ofgem, to revise its price cap—the standard bill for homes across England, Scotland, and Wales will see an increase from £1,717 to £1,738 yearly.
This adjustment to the price cap translates into an extra £21 annually or an additional £1.75 on monthly statements. Following closely behind a previous 10% uplift in October, Ofgem cites “volatile international markets” stirred by events in Russia and the Middle East as the culprit behind continued energy cost volatility.
It’s noted that Ofgem revises the price cap for household energy every three months, reflecting wholesale market energy costs, though it does not place a ceiling on overall bills. The cap, importantly, stipulates the maximum rate energy companies are allowed to charge customers in England, Scotland, and Wales per kilowatt hour (kWh) of usage; however, this does not cap the total energy bill—meaning the more you use, the more you pay.
Nevertheless, according to price comparison site Uswitch, switching to a 12 month fixed deal could mean yearly savings of up to £148 when measured against the price cap. People are encouraged to compare prices and shop for the most economical offers, reports the Express.
Locking in affordable energy deals is now seen as critical, with predictions indicating a further rise in energy costs this April due to ongoing market “turbulence” and impending price cap reforms. According to the latest data from Uswitch as of December 31, an average household could save up to £148 annually against the current price cap by opting for a twelve-month fixed deal.
Ben Gallizzi, Uswitch.com’s energy expert, remarked: “This predicted rise in April’s price cap would mark a third consecutive hike for energy prices, adding to the current pain for households.”
He highlighted that the typical household on a standard variable tariff might see a 1% rate increase from April, on top of the 1% bump already set for January. While clarifying that these early estimates do not guarantee a 1% uplift, the volatility of energy prices remains a concern.
Gallizzi advised: “There are now a range of fixed deals available that are significantly cheaper than the predicted price cap for January, so it is well worth running a comparison to see how much you could save.”
In tandem, Ofgem has encouraged customers to communicate with their suppliers regarding available support and to pursue more economical tariffs. Tim Jarvis, Director General of markets at Ofgem, stated: “With more tariffs coming into the market, there are ways for customers to bring their bill down so please shop around and look at all the options.”
“In the short-term though, anyone struggling with bills should speak to their supplier to make sure they’re getting the help they need and look around to make sure they’re on the best, most affordable deal for them.”