Money Saving Expert founder Martin Lewis has urged Britons to change their energy tarrifs to save as much as £200.
Some fixed energy tariffs are offering rates considerably cheaper than Ofgem’s new price cap, which dictates bills for the majority of households in the UK.
The new cap rose as much as 10 percent at the start of this month and saw the average household energy bill increase by £149 a year.
It’s gone from £1,568 to £1,717 per year for a typical duel-fuel household in UK nations excluding Northern Ireland.
Appearing on BBC Radio 4’s Today Programme, Mr Lewis argued we should “probably call it a ‘pants’ cap at the moment”, adding: “If you are staying on the price cap right now you are ripping yourself off.”
Fixed energy tarrifs also give households more certainty because the rates are locked in for the fixed term which is usually 12 months.
For example, Ovo Energy’s 1 Year Fixed 27 tariff, is priced at £1,567, which could save consumers as much as £150, compared to the price cap.
The Outfox the Price CapFixed Dual V2 tariff from supplier Outfox The Market is £1,555 for an average user, meaning Britons could save as much as £160.
Another example is EDF’s Essentials 1yr Oct25v3 tariff, which also accepts those on smart prepay, offering a rate priced 8.9 percent lower than the price cap set on October 1.
Russia‘s invasion of Ukraine in February 2022 triggered an energy crisis and was disastrous for British household budgets.
Scott Byrom, CEO of The Energy Shop comparison service told the Telegraph: “Consumers have had their hands tied when it comes to saving on their energy bills for the last three years.”
He added: “As we head into winter – when we use 75pc of our annual gas consumption – and have the double-whammy of seeing bills rise by a further 10pc, it’s a small relief that consumers finally have the chance to save on their forward-looking energy bills.”
The Government brought in the price cap in January 2019 to set a maximum rate that energy suppliers can charge per kilowatt hour (kWh) of energy for consumers in England, Scotland, and Wales.
It’s set every three months by the regulator Ofgem, informed by typical energy use, and covers some 28 million households.
Mr Byrom said in the wake of the Chancellor Rachel Reeves’ move to cut the the Winter Fuel Allowance finding the best-value tarriff is “especially important for the ten million elderly customers” who will no longer receive the support.
Ms Reeves announced in July that the payment, of up to £300, will become available only to those on pension credit.
The price cap currently in place will remain in effect until December, and though forecasts suggest it could drop in January, the best deals for fixed rates are still expected to be cheaper. The tariffs will give families across Britain some relief during the winter months, when energy consumption spikes.
