With an energy bill rise looming, Britons are urged to check if it's worth finding a fixed deal to save money in the long run.
Currently, the energy price cap is set at £1,568, however analysts predict it will rise by 10 per cent from October 1, 2024.
Around 80 per cent of households could be left with soaring energy bill prices over the winter.
Pensioners may also be facing a 15 per cent rise in their energy bills this winter as the Labour Government has altered the eligibility criteria for the Winter Fuel Payment.
Chancellor Rachel Reeves announced last week that the payment, worth between £100 and £300, will only be made to around 1.5 million state pensioners on means-tested benefits.
The change means that around 10 million pensioners who received the payment last year will not be due the money this winter.
Around 10 million pensioners will now miss out on this extra help worth £300 over the winter period
PAWith so much uncertainty, Britons could find peace and avoid any shock changes in their energy prices by finding a cheaper fix now.
On the MoneySavingExpert website, Martin Lewis and his team have compiled a list of the "top energy deals" on the market right now.
When considering if it's worth switching to a fixed deal, Britons need to look at what is expected to happen over the course of the next year with the energy price cap.
A fix that looks decent now could end up costing someone more over the next year if energy prices drop.
Analysts at MSE predict that the cap will rise for October to December to £1,706. For January to March it’s a little less clear, as market prices have a longer time period to change, however they forecast the price cap to stay the same £1,723.
If the predictions above are right, Martin's rule of thumb for when it's worth switching is "if you find a fix for up to nine per cent more than the current (July to Sept) Price Cap, it's predicted you'll save over the year compared to staying on the Price Cap."
He mentioned E.on's Pledge tariff, which is open to all on Direct Debit (who'll have or get a smart meter), but is basically a three per cent cheaper Price Cap, so compared to that it would need to be 11 per cent cheaper.
Similarly, EDF's Ensure tariff is essentially the Price Cap but with lower standing charges, and is also three per cent cheaper on average.
Top energy deals worth considering:
E.on Next
The Next Pledge v5 is available to new and existing customers. It stays three per cent less than every Cap (so moves with Price Cap). There are also no exit fees.
This variable tariff offers a fixed discount off the Price Cap unit rates for 12 months. It'll stay £50 below the Price Cap (three per cent - at average annual use) for the fixed term.
EDF Energy
EDF Ensure is open to new and existing customers. This deal stays £50 less than every Cap (so moves with Price Cap). There is a £50 dual-fuel exit fee.
This variable tariff also offers a fixed discount off the Price Cap standing charges for 12 months. It'll stay £50 below the Price Cap for the fixed term.
Outfox the Market
The Fix'd Dual Aug24 v2.0 is available to new and existing customers for a 12-month fix.
It is one per cent less than the price cap and customers will be charged £50 dual-fuel exit fees. Britons must pay by Direct Debit and manage their account online. Smart meters are not required.
Octopus Energy
Octopus 12M Fixed July 2024 v1 is available for new and existing customers for a 12 month fix. It is the same price as they price cap with no exist fees.
Ovo Energy
The 1 Year Fixed Loyalty is available to existing customers only for a 12 month fix. The deal is one per cent more than the price cap and customers will be charged £150 dual-fuel exit fees.
British Gas
Their Fixed Tariff 14M v1 is open for new and existing customers for a 12-month fix. The deal is two per cent more than the price cap with £100 dual fuel exit fees. Smart meters are not required.
British Gas is also offering half-price electricity until September 8 2024 on Sundays to some eligible customers.
Sainsbury's Energy
Sainsbury's Fix and Reward 12m V22 is available to new and existing customers for a 12-month fix. This is five per cent more than the current energy price cap and with £100 dual fuel exit fees.
Customers will need to have or get smart meters. This deal is available as dual-fuel or electricity-only.
New customers will get 4,000 Nectar points when signing up (2,000 for electricity-only) and two extra points for each pound spent in Sainsbury's stores (one extra point for electricity-only), according to the MSE website.