Millions of households across the UK are being urged to review their energy accounts this week, with experts revealing that switching supplier could slash annual bills by more than £200.
Cheapest Fixed Deal in Months Sparks Price War
In a significant shift for the energy market, green supplier Ecotricity has launched the cheapest fixed deal seen in months, priced at just £1,527 a year. This move has triggered a wave of price cuts from rivals, with major suppliers including So Energy and E.ON Next reducing their own fixed tariffs by up to £51 overnight.
Will Owen, an energy expert at the comparison service Uswitch.com, highlighted the trend. "Fixed deals have jumped the gun in the battle for cheaper bills as we see energy wholesale prices fall this week," he said. "So Energy, Ecotricity and E.ON Next deserve credit for being the first to pass on these savings to fixed deal customers, and we’re hopeful that other providers will quickly follow suit."
Why You Should Consider a Fixed Deal Now
For customers of the so-called 'Big Four' suppliers—British Gas, OVO, E.ON, and Octopus—sticking with a standard variable tariff could be costing them dearly. Analysis suggests they could save an average of £228 a year by closing their current accounts and moving to a rival offering a competitive fixed deal.
"For customers looking to cut bills now ahead of the winter, our advice remains to secure a well-priced fixed deal," advised Will Owen. "This will lock in significant savings over the crucial winter months when energy use is highest." He issued a stark warning to those who haven't reviewed their tariff recently, stating: "If you haven’t fixed in a year or more you’re probably on a standard tariff and paying more than you need to."
Calls for Reform and Social Tariffs Intensify
The news comes amid ongoing criticism of the energy regulator Ofgem's price cap. Consumer champion Martin Lewis has been a frequent critic, recently telling BBC Radio 4’s Today programme that the cap should be renamed a "pants cap". "If you are staying on the price cap right now you are ripping yourself off," the 52-year-old stated bluntly.
Adding his voice to calls for systemic change, David Buttress, the former chief executive of Ovo Energy, agreed that more support is needed. He called on the government to introduce a social tariff for energy, similar to those used in the telecoms industry to help people on benefits with broadband costs. "A social tariff would allow us to address the cost of energy for the poorest in our communities in a way that means, collectively, we could give them the protection they need to get through the winter months," Buttress said.
The message from experts is clear: with wholesale prices falling and new fixed deals appearing, now is a critical time for consumers to take action and secure a better rate before the peak winter consumption period.
