Switch to these energy price cap beating deals
The latest Ofgem energy price cap takes effect from October 1, cutting energy bills for millions of households. But we've found five energy deals that are cheaper.
The latest Ofgem energy price cap takes effect from October 1, which means the price of an average standard variable energy tariff will be capped at £1,042 a year - down £84 from it's previous level of £1,126. The average price of prepayment gas and electricity will be cut by £95, from £1,165 to £1,070.
But you shouldn’t be relying on the price cap to save you, as switching energy supplier remains the best way to cut your annual energy bills.
How to switch energy supplier
How to switch energy supplier with UKPower. Simply enter your postcode and we'll compare energy prices from a range of suppliers. You then choose the one you prefer and we'll take care of the rest.
What energy deals are cheaper than the price cap?
It worth noting that the annual usage costs of each deal are based upon Ofgem’s average household energy usage figures.
- E.ON Fix 1 Year Exclusive September 2020 v2 - 12 month fixed rate tariff with an average bill of £870 a year.
- Green Network Energy GNE Summer Sizzler v9 - 12 month fixed rate tariff with an average bill of £876 a year.
- Pure Planet 100% Green 12m Fixed Sep20 v1 - 12 month fixed rate tariff with an average bill of £883 a year.
- Utility Point Just Up 20 Wk39 (limited availability in the UK) - 12 month fixed rate tariff with an average bill of £869 a year.
- Shell Energy Energy January 2022 - 16 month fixed rate tariff with an average bill of £874 a year.
What is a fixed rate energy tariff?
Fixed rate tariffs are and increasingly popular option as they fix the rate you pay for the duration of the deal – meaning they’re a great way to protect against energy price hikes.
Why switch to a fixed rate tariff?
Your energy bills are made up of two main charges:
- Unit rate - Measured in kilowatt hours (kWh), this is the rate you pay for each unit of gas and electricity you use. Although the rate is fixed, your bills will still rise if you use more energy.
- Standing charge - A fixed daily charge that covers the cost of energy infrastructure and transportation to your premises.
Fixed rate energy tariffs charge a set price for each unit of gas and electricity you use for the duration of the deal you sign up for. In the deals above, for example, Pure Planet’s 100% Green 12m Fixed Sep20 v1 fixes your rates for 12 months, while Shell Energy’s Energy January 2022 fixes them for 16 months.
Although your energy bills will still go up and down depending upon how much energy you use, locking your rates in with a fixed deal is the best way to protect yourself against seasonal price hikes. For more details, check out last week’s blog Why NOW is the time to switch energy.
Click here to run an energy price comparison, and see if you could be paying less for your gas and electricity.