UK households ‘must act today’ to beat Wednesday price rise | Personal Finance | Finance

Energy specialists at MoneySuperMarket Energy are advising households currently on standard variable tariffs to make the switch and lock in a fixed rate, ahead of average bills climbing by £35 from Wednesday, October 1, when the updated energy price cap will push typical annual energy costs to £1,755.

The experts revealed that customers could slash up to £271 from their bills by moving to a fixed deal immediately, with the most competitive offers on the market currently priced between £1,429 and £1,643, varying according to supplier size. Switching to a fixed tariff will not only deliver immediate savings for households before winter arrives and energy consumption rises, but will also shield them from potential future price increases under the energy price cap, which now sits approximately 50% above its 2019 introduction level, according to the specialists.

Laura Hinton from MoneySuperMarket Energy said: “At the moment, around 66% of households are on a standard variable rate, which means that from Wednesday most will see their bills go up just as the winter months set in and energy use increases. If you’re one of the millions of households on a variable rate, there’s still time to lock in a fixed deal before the energy price cap rise kicks in. Fixing now means you can avoid paying more than necessary this winter.

“Fortunately, switching energy provider is quick and simple, taking just a few minutes. Households who shop around now could save an average of £271, avoid the October price hike and protect themselves from future price rises. If you’re thinking about switching, the best deals will likely start to be withdrawn from Wednesday, so act now to avoid missing out.”

Energy price cap changes since 2019

UK energy price cap for a typical dual-fuel household paying by Direct Debit since its introduction in January 2019. From October 2022 to June 2023, the UK government implemented the Energy Price Guarantee (EPG), capping typical household bills at £2,500 per year.