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Energy customers could save hundreds as fixed terms expire

Energy customers could save hundreds as fixed terms expire
Matt Browning
Written By:
Matt Browning
Posted:
16/05/2024
Updated:
16/05/2024

Households could save up to £410 by switching energy providers to a fresh fixed term, a comparison site reveals.

As 324,715 customers decided to switch last June and July, their 12-month deals could be switched for cheaper options.

If all those energy billpayers moved onto the cheapest fixed tariff alternative, they would save £133m, according to Uswitch.

However, if you are on a fixed-tariff 12-month deal, you’ll automatically carry on for another year on that deal.

The current price cap of £1,690 finishes at the end of June, with the next energy price cap amount due to be announced next week.

So, if customers wish to move to a standard price-capped variable tariff from the current provider, they could save an average of £260.

On the horizon, future energy tariff rule changes could set off even cheaper deals for new customers.

This is thanks to an Ofgem consultation, which proposes scrapping a ban on providers having to offer the same cheaper switching prices to its existing customers.

‘Get a new deal as soon as possible’

Elise Melville, energy expert at Uswitch.com, said: “Households who signed up for a fixed energy tariff last summer should get a new deal as soon as possible, as they could save hundreds of pounds.

“Those whose tariff started in July last year need to act now – as they can leave their current tariff up to 49 days before it ends without paying any exit fee.”

Melville added: “The deals available are the lowest we’ve seen since late 2021, with some fixes even cheaper than the predicted forthcoming price cap, which will be announced next week. Consumers wanting to benefit from these cheaper deals may need to act fast to lock in these rates while they are available.

“Signing up to a fixed deal is the only way to lock in certainty over what you will pay for a set period of time, and prices are expected to rise again this winter.”

The comparison and switching site provided some leading deals for you to consider if your deal is almost expiring.

Top five 12-month fixed deals for new customers

Supplier Tariff name Average bill  Exit fees % below price cap
Ecotricity 1 Year Fixed Electricity £1,540 £75 per fuel 9%
Outfox The Market Fix’d Dual May24 v2.0 £1,563 None 7.5%
British Gas Fixed Tariff 12M v4 / v3 £1,580 £50 per fuel 6.5%
Octopus Energy Octopus 12M Fixed £1,589 None 6%
EDF EDF Essentials 1Yr May25 v2 £1,590 £25 per fuel 6%