Energy providers competing to offer the lowest rates, last opportunity to save £293 on your utility bill before tariff changes
In the ever-evolving energy market, smaller suppliers like Fuse Energy are leading the way with competitive tariffs that offer significant savings for households.
For instance, Fuse Energy's current offering is a 15-month fixed tariff that is approximately 12.7% cheaper than the Ofgem Price Cap, saving an average household around £293 per year. This deal is currently the cheapest one available in the market.
However, it's important to note that this tariff is only available until midnight on August 18, so households looking to take advantage of this deal should act quickly.
Meanwhile, other competitive fixed deals from suppliers such as Octopus Energy and Outfox Energy can save a medium-use household up to £255 annually compared to the Price Cap variable rates.
Moreover, tariffs like EDF Simply Tracker and British Gas Cap Tracker reduce standing charges by £50 per year below the Price Cap, benefiting low to medium energy users. These tracker tariffs match the quarterly Price Cap for unit rates, offering savings of about £70 to over £200 per year for typical households compared to staying on the Price Cap.
It's worth mentioning that the Ofgem Price Cap for an average household paying by direct debit is set at £1,755 annually from October to December 2025, a 2% rise from the previous quarter.
Payment methods also play a role in savings. On average, paying by direct debit is cheaper than standard credit, potentially saving about £135 annually.
Remember, comparing energy deals requires checking the unit rate (how much you're charged per kWh) of the new fixed tariff against that of your existing deal. Affiliate links may be included in this article, and This is Money may earn a commission if you take out a product.
In conclusion, by switching from the standard Ofgem Price Cap variable tariffs to currently available cheapest fixed or tracker tariffs, UK households can save approximately £70 to £255 annually, with some offers promising over 10% cost reduction compared to the Price Cap. It's always a good idea to shop around and find the best deal that suits your energy needs.
[1] Uswitch, 2023. https://www.uswitch.com/gas-electricity/guides/cheapest-energy-deals/ [2] MoneySavingExpert, 2023. https://www.moneysavingexpert.com/utilities/cheapest-energy-deals/ [3] Which?, 2023. https://www.which.co.uk/reviews/energy-providers/article/cheapest-dual-fuel-tariffs/best-cheapest-dual-fuel-tariffs [4] Ofgem, 2023. https://www.ofgem.gov.uk/publications/energy-price-cap-levels-and-announcements [5] BBC News, 2023. https://www.bbc.co.uk/news/business-65394028
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