Should you fix your energy tariff?
Recent years have seen the number of energy tariffs available fall sharply, but there are currently a few deals available which could potentially save you money.
The new Ofgem energy price cap kicked in this week, taking annual energy costs for a typical household up from £1,568 to £1,717, just as Winter Fuel Payments worth between £200 and £300 are being cut for most pensioners.
The higher cap will place many people under huge financial pressure, so it’s vital to check whether you could make savings by changing your energy tariff.
Recent years have seen the number of energy tariffs available fall sharply, but there are currently a few deals available which could potentially save you money.
Gareth Kloet, spokesman for Go.Compare Energy, said: “For lots of customers, switching tariffs hasn’t been something they have considered for a few years, but now could be the right time to fix your rates before the colder months set in. But before you switch, it’s a good idea to take a look at your current tariff and your energy usage - if you are on a flexible/variable tariff then the cost of your energy will depend on the wholesale energy market meaning that your bills could unexpectedly change.
“If you are on a fixed-rate tariff but want to look at other options available it’s worth checking if there are any early exit fees involved if you leave your contract early, which could cancel out any savings you make.”
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Opting for a fixed energy deal gives you peace of mind that you’ll be charged a set price for each unit of energy you use. Bear in mind that to be eligible for the best deals you’ll usually need to have a smart meter fitted, so if you don’t already have one, you’ll need to speak to your supplier about getting one installed.
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Current best fixed energy tariffs include Outfox the Market’s Outfox the Price Cap Fix'd Dual 12-month fixed tariff which both new and existing dual fuel customers can apply for, and costs around 9% less annually than the new price cap. Although a smart meter isn’t required for this particulat deal, you will need to have one fitted if you want to apply for E.on Next’s Fixed 12m v27 tariff, or Ovo Energy’s one-year fixed tariff, which are also both around 9% lower than the new price cap.
Remember that prices will vary depending on where you live and on how much energy you use, so it’s worth using a comparison site to find the best deals for you. If you can’t save by switching, it’s well worth looking at simple ways you might be able to reduce your energy consumption. For example, according to Utilita Energy, turning the dishwasher on when it’s only half full, which it claims one in five of dishwasher owners are guilty of, adds 75p a week onto energy bills, or £38.84 a year – equivalent to £116m across all households. Separate research from the Energy Saving Trust found that you can save around £30 a year just by remembering to turn your appliances off standby mode.
Kevin Mountford, co-founder and consumer savings expert at Raisin UK, added: “We can often forget that when we turn devices off, they are left on standby and continue to use energy. The best way to combat this is to remember to turn non-essential electricals off at the plug.
“It can save you hundreds of pounds annually and only takes two seconds. It’s a particularly helpful tip as we continue to see warnings ahead of what will be an uncertain winter with continued high energy bills and potential tax increases, with many people looking at ways to cut down on expenses.”