Full list of energy suppliers offering deals up to £150 cheaper than the price cap – is it worth fixing now?

ENERGY firms are now battling it out by offering newbies price cap-beating fixed energy deals.

Customers who lock into tariffs are charged the same gas and electricity rates during the entire term of the contract.

Fixed deals protect customers from bill hikes if Ofgem were to increase the price cap in the future.

However, you may risk paying more if Ofgem’s energy price cap continues to fall in the coming months.

You’re also likely to face hefty exit fees worth up to £190 to exit your contract early.

Several major suppliers, including British Gas, Octopus and Ovo Energy, are now offering cheap fixed deals.

At the moment, those on the standard variable tariff (SVT) have their rates capped by Ofgem at the following levels:

• 6.04p per kilowatt hour (p/kWh) for gas
• 24.50p/kWh for electricity
• A standing charge of 31.43p per day for gas
• A standing charge of 60.10p per day for electricity

For a typical household that uses an average of 11,500kWh of gas and 2,700kWh of electricity every year, these rates will cap bills at roughly £1,690.

As this is only an estimate for a typical household, if you use more energy, you’ll pay more.

But if you’re offered a fix that’s lower than April’s price cap, it’s always worth considering.

For example, Ecotricity is currently offering its Green 1 Year Fixed tariff, which costs a typical household £1,540 a year – £150 less than Ofgem’s price cap.

This comes with a £75 exit fee per fuel – so £150 if you lock in with a duel fuel tariff.

Up next is EDF Energy’s EDF Essential 1Yr May25 tariff which will set a typical household back £1,580 a year – £110 less than the price cap.

Octopus Energy’s 12M Fixed tariff costs the same, but there are no exit fees if you leave early.

It’s important to consider that Ofgem’s price cap will be reviewed again later this month, as it now changes every three months.

It means that bills could fall again and current predictions from Cornwall Insight forecast that they’ll hit £1,540 a year for the average household from July 1.

With this in mind, Will Owen, energy expert at , said: “Competition is returning to the energy market, and some deals available are the lowest we’ve seen since late 2021. 

“The recently announced Ecotricity One Year Fixed Tariff is currently the cheapest deal on the market, coming in at £1,540 – £20 below the latest predicted price cap of £1,560 from July.

“If the price cap predictions are accurate, consumers may benefit from taking this deal or other similarly priced tariffs.

“They may need to act fast though to lock in while still available.”

But Kara Gammell, personal finance expert at MoneySuperMarket, says that if you’re also looked for bill stability most deals are still worth considering.

She said: “If you’re looking for the peace of mind of knowing that you won’t be at the risk of future price increases, then a fixed tariff could provide that reassurance.

“Remember to factor in any fees that would apply if you did choose to leave the tariff before the end of the fixed term contract.

“For some, price is one consideration alongside other factors like the sustainability of the energy supply and households who can have a feed-in tariff, or who charge electric vehicles at home.

“But for those households, waiting for more choice could outweigh short term cost benefits of switching now.”

What are the alternatives?

Customers unwilling to commit to long-term fixed energy deals may want to consider flexible tariffs.

Kara Gammell, personal finance expert at comparison site Money Supermarket Group, says: “These will almost always be at or below the price cap.”

For example, E.ON Next’s Pledge variable tariff offers a fixed discount of around three per cent on the price cap rates for 12 months.

It will save the average household around £50 a year but comes with a £50 exit fee if you switch before the year ends.

The deal is available to both new and existing customers.

For a bigger reward but at a higher risk, Octopus Energy offers two variable tariffs which track wholesale gas and electricity costs.

Customers on the Octopus Tracker see their prices change daily, but unit rates have remained consistently lower than the price cap in recent months.

For example, in the last 30 days, people living in Southern England on the Octopus Tracker paid a maximum of 20.3p per kWh for electricity and 4.81p per kWh of gas, which is 4.2p and 1.23p cheaper than the price cap per fuel.

The Agile Octopus tariff works similarly to the Octopus Tracker, the main difference is the former’s prices change every half hour.

Remember that those wishing to switch to any of these tracker tariffs must have a smart meter.