The energy price cap fell 7% on 1st July 2024, meaning the average annual energy bill for a dual-fuel household is currently £1,568, down from £1,690 the previous quarter. While energy costs have fallen around 20% in the last 6 months, the latest predictions from independent energy analysts Cornwall Insight suggest that the energy price cap could rise to around £1,723 from October.
This means that now could be a good time to start shopping around for the best fixed-price energy deals. To provide some context on where we are with energy prices, consumers have been unable to shop around for the best energy tariffs since the start of the energy crisis in October 2021, where wholesale energy costs soared amid financial and political instability.
Rising wholesale energy costs disrupted the energy market leading to many suppliers going bust. As a result, over 2 million consumers were forced to move suppliers through no fault of their own - many of whom ended up on a higher tariff than they were previously on. Consumers were provided with some protection from the hike in energy prices, however, firstly through the energy price cap set by Ofgem and then subsequently via the Energy Price Guarantee (EPG) - a government subsidy that ensured consumers paid a maximum of £2,500 per year based on an average dual-fuel household.
Cheapest fixed-price energy deals compared
There are currently very few fixed-price energy tariffs on the market that can beat the rate that is capped by the energy price cap. We expect there to be further competition in the energy market in the coming weeks and we will continue to update this article as and when new deals are released. Any deals listed below were correct at the time of writing and are subject to change at any time. Remember, if you decide to fix your energy tariff then you are committed to that rate for the duration of the fixed period and you are unlikely to be able to switch to a better deal without paying an exit penalty.
| Energy Tariff | EDF Ensure (Tracker, not a fixed tariff) - Stays £50 less than EVERY price cap | E.on Next Pledge (Tracker, not a fixed tariff) - Next Pledge v5 | Outfox the Market - Fixed Dual - July 24 | Octopus - 12 Month Fixed - June 24 | British Gas - Fixed - 14M v1 | EDF Energy - Essentials 1 yr July 25 |
| Who can get it | New and existing customers | New and existing customers | New and existing customers | New and existing customers | New and existing customers | New and existing customers |
| Exit fees (payable if switching before 12 months is up) | £50 dual-fuel | No exit fees | £50 dual-fuel | No exit fees | £100 dual-fuel if switching to another provider
Customers can switch to another British Gas tariff for FREE if a cheaper one becomes available (as part of the 'price promise') |
£50 dual-fuel |
| Is the rate lower than the energy price cap for July 2024 (£1,568) | Yes, it is guaranteed to stay £50 less than EVERY price cap for 12 months | Yes, stays 3% less as it tracks the wholesale price of energy (Remember that this is not a fixed tariff) | No, this works out around 1% more than the current energy price cap. | No, this works out around 5% more than the current energy price cap. | No, this works out around 2% more than the current energy price cap. | No, this works out around 2% more than the current energy price cap. |
| Approximate annual savings based on typical annual dual-fuel direct debit bill | This is a variable tariff that offers a fixed discount, ensuring that energy bills stay £50 cheaper than every price cap for 12 months
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This is a variable tariff that offers a fixed discount of 3% less than the energy price cap for 12 months. |
No savings, but fixing will mean you know what you will be paying for the next 12 months
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No savings, but fixing will mean you know what you will be paying for the next 12 months
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No savings, but fixing will mean you know what you will be paying for the next 12 months |
No savings, but fixing will mean you know what you will be paying for the next 12 months
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| Who should switch? | Those wanting to guarantee to pay less than the energy price cap for 12 months | Those who want to ensure they do not pay more than the energy price cap over the next 12 months | Those wanting to know what they will be paying for the next 12 months | Those who want to fix their energy tariff but want the flexibility to switch providers without penalty | Those who want to fix their energy tariff but want the flexibility to switch to another British Gas tariff without penalty | Those wanting to know what they will be paying for the next 12 months |
Scroll to view full table - Correct at 16.07.24
Compare the cheapest energy deals
The energy price cap is a figure set by the energy watchdog Ofgem. It is based on the annual energy that a typical family paying by direct debit is expected to use and currently stands at £1,568. The next energy price cap announcement is due by the 27th August which will cover the period from 1st October to 31st December 2024. It means that now could be a good time to start shopping around to lock in the best fixed-rate energy deals. For the latest energy price cap predictions, check out our regularly updated article 'Should I fix my energy prices?'.
Until now, the best strategy for most UK consumers was to stick with their existing standard variable energy tariff as there were very few fixed-price energy deals coming in lower than the energy price cap. To make switching worthwhile, ideally, you should aim to source a fixed-price energy deal that is cheaper than the current energy price cap (or even better, lower than future energy price cap predictions), however, this is something that only a few providers are currently willing to offer.
You also need to keep in mind that if energy prices fall further, there may be better deals that come to the market in the coming months. So, fixing your energy tariff now could mean that you are unable to switch to a better deal further down the line unless you are willing to pay a hefty exit penalty fee. That being said, some energy providers, such as British Gas, are offering some customers a 'price promise', meaning they will automatically lower the fixed price deal if the energy price cap is lowered in the future. Alternatively, rather than a fixed-price energy deal, you may want to consider a 'tracker' tariff that guarantees to track slightly lower than the energy price cap. We will continue to monitor the energy market and will update our article as soon as there are some competitive energy deals available.
How to switch energy providers
If you have found a suitable energy deal and are willing to switch energy providers then you should complete the following steps.
- Check and make sure that the deal you are switching to is the best option for you. Double-check the standing charges for both gas and electricity and ensure that the charge per kWh represents good value and is under the current energy price cap. Ensure that the period you are agreeing to fix for works for you and your family. Also, check the small print at both your new and existing supplier so that you are aware of any additional costs including administration and exit fees.
- Sign up to your new supplier, provide direct debit details where applicable and take final meter readings. This will ensure that your new supplier is able to create a new bill and allows your old supplier to send a final bill. A switch should usually be completed within approximately 15 days, although some suppliers provide extra flexibility allowing you to choose a switch date up to 28 days in the future.
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Keep an eye on your account balance with your old supplier. Money should be automatically refunded to your account if you are in credit when you switch, however, it is worth chasing this if it has been received within 30 days. Similarly, if you were in arrears when you switched, you should ensure that the final bill is settled as soon as possible.
The switching process is relatively straightforward, however, if you have a smart meter, your new supplier may need to check on the type of smart meter to ensure it is compatible. Below, we explain an easier way to switch energy suppliers, using an auto-switching service.
Best way to switch energy tariff
Energy providers often reserve their best energy deals for new customers, however, once the offer period ends, customers will be switched to the provider's standard rate tariff. Many customers fail to shop around meaning they remain on standard variable rate deals, either unaware that better offers exist or unwilling to shop around for themselves. An automatic energy switching service will do the hard work for you, finding the best deals available and carrying out the switch on your behalf. Read our article 'Compare the best energy auto-switching services in the UK – save money on utilities without even trying' for more information.
