It's been a tough few months keeping up with our gas and electricity bills and unfortunately it's only going to get harder for us and many others.
The energy crisis isn't going anywhere and something drastically needs to be done to help millions that will be facing fuel poverty, but the latest advice hints at paying even more on those dreaded direct debits for a brighter, cheaper future overall.
Martin Lewis, the man behind Money Saving Expert, took to social media last week to discuss the devastating blow the energy price cap predictions will have and stated that the amounts are "unaffordable for millions." While help has previously been announced from the government in the form of grants, nothing further has been added.
Cornwall Insight, energy analysts are predicting that the energy price cap, set to be announced by Ofgem in October, will be £3,582 for the year, £200 higher than their previous estimate.
READ MORE: British Gas customers urged to check these things ahead of new energy price cap
They then went on to say that the energy price cap, which limits the rates a supplier can charge for each unit of gas and electricity you use, will increase again in January 2023, to £4,266. It means the average household would be paying £355 a month, instead of £164 a month currently.
Mr Lewis and the MSE team have suggested that looking into fixed tariff plans with selected energy providers may be cheaper in the long-term, but of course costly in the short-term. I decided to take this advice to see if paying over the odds may elevate some of the costs from the proposed energy price caps in October and January.
It's important to note here that the advice from Mr Lewis and the MSE team isn't set in stone, and is only a proposed solution for those who may get it slightly cheaper than the predicted energy price cap overall.
I'm with E.ON energy and before the chaos started we previously paid £69 a month for gas and electricity. This went up to £157.91 per month in April, £749.46 for electricity and £1056.17 for gas, bringing the total to £1,805.63 for the year. This was in line with the, then energy price cap in May and I thought that would be it.
However, because we aren't on a fixed tariff I realised this could soon change and increase further to a figure that could be even more costly to fall in line with the October price cap and proposed January price cap.
After reading the MSE advice we discovered that E.ON has the E.on Next Online v18 one-year fix: a fix at 73% more than the current price cap. £3,407 a year with no exit fees, which E.ON says it's available to all existing customers.
We decided to enquire what a fixed tariff would look like and I was shocked when E.ON came back with the figure. I knew it would be expensive but not by this much.
E.ON's Next Online v18 one-year-fix will cost us £255.44 a month, and £3,065.23 per year. That's £97.53 more than what we are paying now for the month and a whopping £1,259.60 more for the year. I never thought I would be in a situation where I am paying more than £3,000 for the basic necessities that are needed to live.
We have asked E.ON how long this price is on offer for but they are yet to get back to us. We are now wondering whether to take this offer or wait out are chances in October to see what rate will be offered then in accordance with the new energy price cap.
It's a risky, expensive gamble and one that I'm just not sure whether to bet on.
Energy deals to consider
The fixed energy deals below, provided from the MSE team, are based on an average of the cost, existing customers may get a higher or lower cost based on a more accurate quote of their current usage.
There are now fixes worth considering from E.ON, British Gas, OVO, SSE and EDF , who all have fixes that are just outside Mr Lewis's predicted percentage (see above) for when it's worth considering, so they could still be worth thinking about if you want price certainty.
- Utility Warehouse Green Fixed 34 one-year fix: has a fix at 50% more than the current price cap. Yet you can't just switch to it without signing up to its other utility products. £2,950 a year and £50 dual-fuel exit fees.
- E.on Next: Next Online v18 one-year fix: has a fix at 73% more than the current price cap. £3,407 a year with no exit fees. E.on says it's available to all existing customers.
- British Gas: Fixed Oct 23v4 one-year fix: has a fix at 93% more than the current price cap. £3,811 a year and £200 dual-fuel exit fees. British Gas says it's available to existing customers on its standard variable tariff.
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Ovo Energy : Better Energy one-year fix: has a fix at 102% more than the current price cap. £3,975 a year and £60 dual-fuel exit fees. Ovo says it's available to all existing customers. This deal is just above the MSE percentage for when a fix is worth considering, but could still be worth a look if you strongly value price certainty.
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SSE: 1 Year Fixed v34 one-year fix : has a fix at 102% more than the current price cap. £3,975 a year and £60 dual-fuel exit fees. SSE says it's available to all existing customers. This deal is just above the MSE percentage for when a fix is worth considering, but could still be worth a look if you strongly value price certainty.
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EDF Energy: Fix Total Service Aug24 two-year fix : has a fix at 103% more than the current price cap. £3,999 a year and £200 dual-fuel exit fees. EDF says it's available to all existing customers. This deal is just above the MSE percentage for when a fix is worth considering, but could still be worth a look if you strongly value price certainty.
To get an existing customer fix you will need to contact your energy provider via telephone, their web chat service or check your online account to see if you can get it. Ensure it's the same tariff though as there can be other tariffs with similar names.
The above tariffs may be able to squeeze money off bills over the next year as long as customers are with one of the firms that will give them the cheapest existing-customer fixes. They will pay a lot more in the next few months to fix now but the MSE team say the hope is that they will gain later.
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