Financial expert Martin Lewis says that fixed tariffs may work out cheaper for many energy customers as Ofgem prepares to increase its price cap once again. Mr Lewis, the man behind Money Saving Expert, says that the deal could work for people including Octopus Energy customers.
A fixed rate tariff sees a household being charged the same amount for their energy for an agreed period of time. But as Ofgem increases its price cap, entering a fixed tariff may save customers in the long run, the Manchester Evening News reports.
The average annual bill is expected to cost £3,582 a year, that's £355 a month compared to the current average of £164 a month. And as if that isn't enough, the cap will now be renewed every three months, instead of six, meaning bills will increase even further this coming January.
