Households across the UK are facing a significant increase in energy costs from July 1, with the new threshold set at £1,862 a year. However, switching to a fixed energy tariff could cut bills by hundreds of pounds. According to recent data, the cheapest energy tariff on the market costs £1,593 a year for the average household, which is £48 cheaper than the current price cap of £1,641 and £256 below the new threshold.
Fixed tariffs offer better value than variable tariffs, as they lock in a set price for a certain period, typically 12 or 24 months. This can provide households with much-needed financial stability and protection from future price increases. However, it's essential to compare deals from different energy suppliers to find the cheapest option for your household.
Some of the cheapest energy tariffs available include:
- OVO Energy's 'Fix and Save 40' tariff, which costs £1,593 a year for a typical household
- British Gas's 'Dual Energy Fixed 24' tariff, which costs £1,604 a year
- EDF Energy's 'Energy Fix March 2024' tariff, which costs £1,618 a year
When comparing energy deals, it's crucial to consider factors such as the unit price, standing charge, and any additional fees. Households should also check the terms and conditions of each tariff, including any exit fees or penalties for early termination.