Around 22 million Brits could save £292 per year on their energy bills ahead of this winter’s price cap rise. Ofgem announced that the energy price cap will be increased by 2% from October 1 to December 31, 2025.
This means the current cap of £1,720 will rise by £35 to £1,755. However, this doesn’t cap bills; it caps the unit rates and standing charges of standard variable tariffs (SVT). So, if the SVT customers use more than the advertised average annual cost, they will pay even more. According to Uswitch, this could impact around 22 million UK households without fixed deals.
But Richard Neudegg, director of regulation at Uswitch, said this was a « wake-up call for households on price cap-linked tariffs » to lock in cheaper rates now ahead of winter.
He said: « Savings equivalent to £292 a year are already available compared with this incoming price cap, » and warned that doing nothing could cost « an extra £76 more per month on average for energy bills from October to December ».
Mr Neudegg believes it confirms that « households cannot rely on the regulator to cut energy rates in time for some of the coldest months in the year. »
The comparison site said those on variable or default tariffs could « almost certainly save » by switching to a fixed deal or tracker tariff.
Those on a fixed tariff with more than 49 days left on their contract will probably have to pay an exit fee to leave early, so it may cost more to switch.
However, those on a fixed tariff with less than 49 days left on their contract may be able to leave without paying exit fees.
He concluded: “This has been a particularly strong few weeks for good fixed-rate deals, with around 27 fixed deals available which beat the October cap. Over a third of households have now moved off the price cap to fixed tariffs.
“Households should run a comparison and review the options available for their usage levels and region. Fixing your energy tariff to cheaper rates should be a no-brainer for all households who are able to.”
