UK comparison and switching service Uswitch has advised people to stop overpaying for energy amidst news of a British Gas hack. The service highlighted a deal from British Gas that could undercut the price cap by nearly 10%. Ofgem confirmed that the price cap for a typical household using gas and electricity, and paying by Direct Debit, would increase from £1,568 to £1,717 at the beginning of the month.
In an email to subscribers, Uswitch recommended taking action to protect against high rates this winter. They shared several cheaper fixed deals, with the best option from British Gas costing £162 less than the cap. Uswitch emphasised that by not taking action, people are currently paying more. The British Gas Fixed Tariff v5 plan has an average annual cost of £1,555 for typical use.
Additionally, Uswitch highlighted a similar deal with EDF, offering the Essentials Fixed 1Yr Oct25v3 tariff at £1,563 for typical use, and OVO Energy’s 1 Year Fixed 03 October 2024 tariff at £1,589 for typical use. Both British Gas and OVO deals have an early exit fee of £50 per fuel, while EDF’s early exit fee is £25 per fuel. All the mentioned tariffs are fixed for a year.
Experts anticipate that energy rates will remain high until April 2025. EDF predicts the price cap will reach £1,721 per year from January 1 to March 31, 2025, a £4 increase from the current level. Cornwall Insight forecasts the cap will decrease by 1% to £1,697 in January. It is important to note that fixed energy tariffs cap the unit rate and standing charge, with actual bill sizes varying depending on individual household consumption.
People are urged to explore these fixed deals to potentially save on energy costs. As the energy market continues to fluctuate, being informed and proactive about energy tariffs can help households manage their expenses effectively.