Households currently on price-capped energy tariffs will see their bills rise by approximately 4% annually starting 1 October. This equates to an average increase of around £5 per month for a household with medium gas and electricity usage. Further increases are predicted for January, with an additional 9% rise, or £12 per month.
The upcoming price increase is not uniform across energy types. Gas prices are projected to rise by 8% this autumn, while electricity prices will increase by 1%. This means those on variable rates will likely experience the most significant impact on their gas usage, particularly as central heating use increases.
Customers with fixed energy deals are not affected by these price cap changes. Switching to a fixed tariff can provide predictable rates for the duration of the contract, meaning rates will remain stable even if the price cap changes. A typical household could potentially save around £115 per year by moving to a fixed tariff compared to the October price cap.
To find a suitable fixed tariff, it is advised to compare energy prices using your actual annual energy usage. When comparing, consider potential exit fees, contract length, payment methods, and customer service ratings.