British Gas and E.ON launch competitive 12 year fixed energy deals that are cheaper than October's price cap
Britons are urged to shop around for a fixed rate one-year energy deal
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Several energy providers have launched new one-year fixed-rate tariffs that undercut October's rising energy price cap.
British Gas, EOn Next and Outfox The Market have unveiled deals which, on an annual basis, fall below £1,717.
Average annual energy bills will rise by 10 per cent on Tuesday, October 1.
This means a typical household will pay £1,717 annually for energy, a £149 increase from the current cap.
Ben Gallizzi, an energy expert at Uswitch, said: "Energy prices will rise for millions of households from October, so now is a good time to shop around for a fixed deal."
Outfox the Market's Price Cap (Oct 24) Fix'd Dual v1.0 deal is currently the cheapest, priced at £1,600 annually for average usage households, which is £117 less than the upcoming price cap.
British Gas and E.ON launch competitive 12 year fixed energy deals that are cheaper than October's price cap
GETTYE.On Next's Gust 12m v11/Next Fixed 12m v26 deal follows at £1,626, whilst British Gas offers its Fixed Tariff 12M v15 at £1,627.
These deals present potential savings for consumers, with British Gas's offer being £90 cheaper than the October price cap.
Martin Lewis, the money saving expert has also warned of a "very difficult winter" ahead, especially for low-income households and pensioners who will no longer receive certain cost of living payments.
Lewis advised that fixing one’s tariff now could be beneficial for most people. He said: "If you do nothing, you'll be paying eight or nine per cent more than you do now for the next year."
Ofgem's energy price cap is forecast to rise in October 2024
GETTYHowever, he emphasised the importance of choosing only cheap fixed deals, which could save consumers four to five per cent over the next year compared to the price cap.
EDF Energy and Ovo Energy are also offering competitive fixed tariffs.
EDF's Essentials 1Yr Sep25 v3 is priced at six per cent more than current rates but three per cent less than October's cap, with £50 dual-fuel exit fees.
Ovo Energy's 1 Year Fixed is similarly priced, offering three per cent savings against the October cap, but with higher £100 exit fees.
Sainsbury's Energy has entered the market with its Fix and Reward 12m V25 tariff, priced six per cent above current rates but four per cent below the October cap.
This deal includes 4,000 Nectar points for new customers and extra points on Sainsbury's purchases.
It's important to note that these deals may have specific requirements, such as smart meter installation or online account management. Customers should carefully review terms and conditions before switching.
Beyond fixed tariffs, some energy providers are offering alternative options that track the price cap. E.on Next's Pledge v5 promises to stay three per cent below every price cap, with no exit fees.
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EDF Energy's Ensure tariff offers a similar deal, staying £50 below the cap but with £50 dual-fuel exit fees and Scottish Power's Cap Tracker Sep 2025 keeps prices £15 below the cap without exit fees.
Sainsbury's Energy provides a Tracker and Reward tariff that matches the price cap but offers Nectar points as an incentive.
For more tech-savvy consumers, Octopus Energy offers variable tariffs like Octopus Tracker and Agile Octopus. These smart tariffs adjust rates frequently, potentially offering savings but requiring close monitoring.
When choosing a deal, consumers should consider their usage patterns, risk tolerance, and any additional benefits offered by providers.