ENERGY bills are set to rise tomorrow, but switching provider and locking into a fixed deal could help you save up to £312 a year.
Ofgem’s price cap will rise by 13% or £18 a month from Wednesday, July 1, to £1,862 a year for the average household using both electricity and gas.
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Around 33million homes across the UK are on standard variable tariffs which means they are directly impacted by the price cap.
But you could save hundreds each year by hunting for cheaper fixed deals.
These types of tariffs can be a helpful way to make sure you are not at the mercy of a fluctuating market if the price per unit looks like it will go up.
However, it is important to remember that it does not mean your bill will be the exact same each month.
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Your supplier locks in the price you pay per unit, but not how many units you consume.
The more energy you use in a month, the more you will have to pay.
There are currently 10 deals on the market that beat July’s price cap, according to Uswitch.
The cheapest deal on the market is a 15-month fix from Fuse Energy, with the average annual bill coming in at £1,550.
But be aware that you will have to pay a £50 fee on both fuels, if you choose to exit the contract.
The supplier is also running a 13-month fix that is £302 below the July cap, with the average bill coming in at £1,560.
Again, there are exit fees of up to £100 if you want to leave before the contract is over.
EDF is also offering a 13-month fix that is £284 cheaper than the cap, with the average yearly bill set at £1,578.
A fixed tariff can be a helpful way to make sure you are not at the mercy of a fluctuating market if the price per unit looks like it will go up.
However, it is important to remember that it does not mean your bill will be the exact same each month.
Your supplier locks in the price you pay per unit, but not how many units you consume.
The more energy you use in a month, the more you will have to pay.
But, these tariffs can be a helpful way to protect yourself from price hikes if gas and electricity prices go up.
It is always important to read your contract before you sign up and talk to them if you have any questions.
You should always compare tariffs using a comparison website like Uswitch or MoneySupermarket.com before you switch.
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