Experts are warning families to think twice before they fix their energy rates as new deals start to appear before the new price cap comes into force on July 1.
Fixed tariffs virtually disappeared once energy prices started to soar in September 2021, and apart from a handful of customers who were lucky enough to sign up for a long fix at least 18 months ago, most customers are now paying for their energy at the Standard Variable Rate (SVR).
The SVR is set by regulator Ofgem's energy price cap, but since October 2022, the Energy Price Guarantee (EPG) has limited the amount households can be charged per unit of gas or electricity, as well as on the daily standing charges. The EPG has given a set discount on Ofgem's price cap to bring bills down to £2,500 a year for a typical household paying by direct debit until June 30. For those who pay on receipt of bills, or use a prepayment meter, the cap is slightly different..
