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SWITCHING to a fixed energy tariff could cut your bills by hundreds of pounds a year.
The cheapest energy tariff on the market costs £1,550 a year for the average household – £113 cheaper than the current £1,663 price cap, and £173 below the new £1,723 threshold from October 1.
If you’re on a standard variable tariff then you could be overpaying – it’s time to check your bill and see if you can switch to a cheaper provider Credit: Getty
But, you should always compare prices as the amount you pay for your energy bill will vary based on where you live and how much you use.
Below are the top fixed tariffs you can switch to now.
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We update the deals every week – but if you want to do a more current and personalised comparison, then visit Uswitch.
The cheapest energy tariffs to switch to now
To help make the deals comparable, the “average annual bill” is the amount a typical household would pay for energy on this tariff, each year.
It can be compared directly to the energy price cap, which we explain in more detail below.
Fuse EnergyAverage annual bill: £1,550Length of deal: 14 monthsSwitch now
Fuse EnergyAverage annual bill: £1,574Length of deal: 18 monthsSwitch now
E.ON NextAverage annual bill: £1,611Length of deal: 24 monthsSwitch now
Co-op EnergyAverage annual bill: £1,612Length of deal: 18 monthsSwitch now
Octopus EnergyAverage annual bill: £1,612Length of deal: 18 monthsSwitch now
EcotricityAverage annual bill: £1,613Length of deal: 24 monthsSwitch now
British GasAverage annual bill: £1,677Length of deal: 21 monthsSwitch now
Sainsbury’s EnergyAverage annual bill: £1,686Length of deal: 24 monthsSwitch now
What is happening to energy prices?
ENERGY prices are set to rise from October 1.
This is largely due to the rise in global gas prices triggered by the war in the Middle East.
Read more…
What is the energy price cap?
The energy price cap is a limit on what companies can charge you per unit of gas and electricity.
This is often expressed as a bill that the “typical household” would pay each year by direct debit.
A typical household in the UK is set to use 2,700 kWh of electricity and 11,500 kWh of gas – so your usage can vary.
Use less energy, and your bill will be cheaper. But use more energy and you’ll pay more for your consumption.
The energy price cap is set every three months, and it will change again on July 1.
Changes to the energy price cap are mainly affected by wholesale gas and electricity prices – or what your provider, like British Gas or Octopus Energy, are paying for energy.
Compare the best energy deals with Uswitch
What is the difference between fixed and variable tariffs?
When looking for an energy tariff, you’ll be able to choose between a fixed or variable option.
Like a mortgage, these types of energy deals work differently:
Fixed energy tariff – Locks in the amount it will charge you per unit of gas and electricity over a certain period, normally one to two years.
Variable energy tariff – The price of these arrangements rise or fall in tandem with the energy price cap. Many providers now offer tracker tariffs, which are always priced by a certain amount under the energy price cap.
Fixed energy deals provide predictability. If energy prices rise, then you stay unaffected.
But, if these prices fall, then you won’t be able to take advantage of the reduction in gas and electricity costs.
No matter what you choose, make sure to keep track of when your contract expires – because when it does you’ll move to your provider’s Standard Variable Tariff (SVT). This is usually more expensive than other tariffs.
According to Ofgem, the energy regulator, around 29million households are on an SVT. This represents the majority of homes in the UK.
What affects the price of energy?
Gas and electricity prices are influenced by many variables, with supply and demand being a significant one.
When there is an increased demand for energy, prices increase, and when it subsides then prices follow suit.
Geopolitical events, like war or a change in an important government, can directly impact the price of energy too – especially when the UK relies on foreign countries to supply some of its energy demands.
Should you switch energy tariffs?
Switching energy providers is one way you can reduce your energy bills, especially if you’re on your provider’s SVT.
But it’s not an option for everyone.
If you’re on a fixed energy deal, then also keep an eye out for exit charges.
These are fees for ending your agreement early, and it could make switching more costly.
If you’re on an SVT you can usually switch penalty-free immediately.
Before committing to a switch, it is worth comparing your options with some of the best deals on the market.
Our table is updated weekly with the cheapest tariffs.
Compare the best energy deals with Uswitch
How to switch energy providers
If you want to switch energy providers, and you’ve found a deal which works better for you, then get in touch with your new supplier.
This can be by phone, an online form, or any other way you can communicate with your supplier.
Then, let them know you wish to switch to them, take a meter reading to give to them and they’ll carry out the rest of the work.
You don’t need to get in touch with your current provider as your new supplier will cancel your contract for you.
This also means you should receive your new energy without interruption.
All firms are obliged to offer this process, as set out by the Energy Switch Guarantee – a protection scheme launched to encourage market competition.
If you’re on a smart meter, it’s possible your existing one will stop working after the switch – however your new supplier should be able to fit a new one if that’s something you want to continue using.
If a switch takes longer than five working days, the new supplier must pay you £40 compensation within 10 days.
If if doesn’t, it has to pay you an extra £40.
