Bill payers are being encouraged to investigate fixed tariffs as it could be cheaper than the energy price cap. Fixed rate tariffs ensure customers will not have to pay more than an agreed amount for a set period of time - usually around 18 months.
With the energy regulator Ofgem increasing the energy price cap, Money Saving Expert Martin Lewis is advising householders to look into whether a fixed rate deal with their provider would save them money in the long-term. This option is particularly worth exploring now that the cap will now be renewed every three months as opposed to six.
Octopus Energy customers could get a cheaper deal on a fixed tariff option for the next energy price cap, the Manchester Evening News reported, although it is best to check direct with the supplier as the depends on a person's energy usage and location. You can check regular fixed tariff options with energy suppliers on the MSE website here. The firm's cheapest fixed rate is its 12 month fixed tariff.
With this deal the daily unit rate is 77.6 p/kWh, 53.95 p/kWh for night unit rate and has a standing charge of 43.72 per day. These figures are estimated from a Yorkshire postcode and it would differ marginally depending on the area.
Switching to a fixed tariff at a time when the price is regularly increasing can offer households some peace of mind that they will be paying the same amount. The price cap currently means an average home on a standard variable tariff will pay no more than £1,971 for gas and electricity, but with the cap forecast to rise in October this will get more expensive.
Octopus Energy has said it costs them over £4,000 to a buy a year's worth of energy from the wholesale market. It says this is why households shouldn't rule out moving to a fixed tariff.
An Octopus Energy spokesperson said: "If a customer is looking for security and prefers to know how much they will pay for energy each month for the next year, they may want to fix their prices. If a customer prefers to wait to see if energy prices come down again over the next months, they could stay or move onto our SVT, and for example fix it at a later date."
Octopus Energy's standard variable tariff is currently capped £50 cheaper than the price cap at £1,921, although there is potential this will increase.
For more stories from where you live, visit InYourArea.
