Three of Britain’s biggest energy suppliers have removed all fixed-price tariffs from sale as rising global tensions linked to the conflict involving Iran push wholesale energy costs higher. British Gas, Ovo Energy and Scottish Power have quietly taken the deals off their websites while markets remain unstable, with industry insiders suggesting they could return later at higher prices.
Analysts warn the move could leave households exposed just months before bills are expected to rise again. A fixed energy tariff allows customers to lock in the per-unit cost of gas and electricity which protects them from price hikes. However, suppliers have now withdrawn these offers to avoid selling energy at a loss.
As reported by The Sun, analysts at Cornwall Insight say household energy bills could rise by 10% this July. Forecasts suggest the average annual bill could increase to £1,801 – a rise of £160 – when the next Ofgem price cap is set.
Most customers will remain protected by the price cap between April and July before rising wholesale prices make an impact. Energy experts are warning people that fixed deals are starting to disappear fast.
Ben Gallizzi, from Uswitch.com, said: “Increased wholesale costs are being factored into the tariffs offered by suppliers. Energy markets remain sensitive to major events, especially when they involve key gas transport routes.
“There are now only two fixed tariffs available that beat the current price cap level, and one of those offers savings versus the upcoming April price cap, but only by £1.”
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It is believed that British Gas, Ovo and Scottish Power have pulled their fixed deals before relaunching them at higher prices. Meanwhile, Outfox Energy is continuing to offer two 12-month deals, averaging £1,640 and £1,664 respectively.
Despite falling since a spike in 2023, wholesale energy prices surged again this week following the outbreak of the conflict in the Middle East. The fighting has impacted the production and transport of both oil and gas across the region.
According to data from Uswitch, the number of fixed tariffs dropped from 38 on Saturday (February 28) to 15 on Thursday (March 5). Meanwhile, the price range of those tariffs has increased from between £1,509 and £1,898 to between £1,640 and £2,194 this week.
Jonathan Brearley, CEO of Ofgem, said on Wednesday that a prolonged closure of shipping lanes, such as the Strait of Hormuz, would create “significant upward pressure” on bills. However, he added that it is still early in the assessment period.
