Customers have been warned that committing to a new fixed-term deal for their gas and electricity in a bid to cut bills could cost them money if they jump too soon. The warning comes after Ovo Energy launched a new fixed deal for a limited number of existing clients, which works out at nine per cent less than the current energy price guarantee - £2,275 a year compared to £2,500.
Cost-of-living champion Greg Marsh, CEO of household bills manager Nous.co is urging families to hold fire on fixing. He said: “Customers need to be wary. For most people a fixed energy deal is simply not worth it at the moment and they risk being left out of pocket.
“Families should already be benefitting from falling energy costs – but they're not. We're calling on companies to bring back good value fixed deals right away. “There are other options out there to save without fixing.”
Latest projections suggest that the annual bill energy cost for a typical dual fuel household will be £2,169 over the next 12 months, according to analysis by Nous.co.
Marsh added: “Energy bills are forecast to start dropping in July, so for a fix to be cheaper in the long run for a typical family it has to be at least 14 per cent or £332 lower than the energy price guarantee, not the nine per cent or £225 Ovo are offering.
“Of course, events can mean these predictions are not 100 per cent accurate. If you really value knowing exactly how much your bills will be for the next 12 months so you can budget, it might make sense to fix. But for most customers the wise move would be to wait.”
