Best fixed energy deals currently beat UK price cap and could save households hundreds
With Ofgem warning of an October rise in the energy price cap, independent comparisons show fixed tariffs offering lower average bills than the cap
Fixed-price energy tariffs currently available on the market can offer UK households meaningful savings compared with the government-regulated price cap, according to a weekly comparison by consumer financial site This is Money.
Ofgem, the energy regulator, has urged households to consider switching to a fixed tariff as the price cap is set to rise in October from about £1,720 to roughly £1,755, an increase of around 2 percent. The best deals highlighted this week had average annual bills substantially below the cap.
This is Money’s comparison found the top current fixed-energy deal has an average annual bill of about £1,490, representing approximately £230 in annual savings against the present cap and larger savings versus the projected October cap. The consumer site said the best deals could save the average household around £265 a year when measured against the upcoming cap increase.
The products featured in the comparison were independently selected by This is Money’s specialist journalists. The site noted that if readers open an account using links marked with an asterisk it may earn an affiliate commission, and that such arrangements do not affect editorial independence.
Fixed deals have been returning to the market after the volatility seen during the energy crisis, and some suppliers are now offering tariffs that undercut the regulated cap. Analysts and consumer advisers say comparing tariffs remains important because prices and availability vary between providers and over time.
The current price cap — a ceiling on the unit rates and standing charge that suppliers can apply to default tariffs and prepayment meters — is reviewed periodically by Ofgem. The regulator’s call to consider fixed contracts reflects the expectation that the cap will rise in October; locking in a lower fixed rate can shield households from short-term price movements, though it may not be the best option for every consumer depending on meter type, payment method and personal circumstances.
Consumer groups recommend checking the terms of fixed deals, including exit fees and contract length, and comparing quotes from multiple suppliers before switching. Independent comparison services can show which tariffs currently sit below the cap and estimate potential annual savings. As the market evolves, shoppers are advised to review the options available at the time they choose to switch.