Cheapest energy deals including Octopus, British Gas, and OVO as Ofgem price cap hiked
Ofgem confirmed its new price cap today and bills will be more expensive from April – so does this mean you should fix now?
The energy regulator confirmed that its price cap was to rise by 6.4% from April 1 from £1,738 a year to £1,849. This hike works out at around £111 a year or £9.25 a month, according to Ofgem.
This is higher than the £85 increase that industry experts Cornwall Insight had previously expected. It also marks the third increase in energy bills since the Autumn of last year. In October, the price cap went up by 10%, followed by another 1.2% rise in January.
Ofgem’s price cap – which limits how much your energy supplier can charge you for each unit of gas and electricity you use – only impacts those on an energy supplier’s standard tariff, so those who are not fixed to a deal. Ofgem says there are 11million Brits who are impacted by today’s news and this covers customers from all major providers including Octopus Energy, British Gas, E.ON Next, EDF, and more.
After today’s news dropped, energy experts urged the millions affected by today’s announcement to act and fix onto a new deal. Richard Neudegg, director of regulation at Uswitch said: “Consumers can take action to avoid this. If you are still riding the rising rates, now is the time to find a better deal. There are plenty of fixed deals available that are cheaper than today’s rates, let alone the higher April prices. A fixed deal could protect you from further price increases for 12 months or longer.”
According to the comparison site, Outfox the Market offers the “cheapest” deal currently available. The supplier’s Fix’d Dual Feb25 12 month tariff sits at £1,670 per year, which could help you save £179 per year compared to the April price cap. Fixing to this deal would keep you at this price for the next 12 months – meaning you will avoid being hit by any other rises.
Richard added: “The larger suppliers are also vying for customers. The cheapest large supplier fixed deal is from British Gas and could save the average household around £172 per year against the April rates. Households still sitting on a deal linked to the price cap can absolutely beat the upcoming hike. We urge anyone who hasn’t switched in a year or more to see what savings they can make.”
Fellow comparison site GoCompare also shared the sentiment, with spokesperson Gareth Kloet saying: “The latest rise in the energy price cap is undoubtedly going to create more pressure on household finances across the country, with many families already feeling the strain.”
“With the new energy price cap coming into effect on April 1, we would encourage customers to review their energy options and consider the best plan for their individual circumstances.”
When it comes to switching providers, Gareth noted that it was “well worth” researching the deals available. He added: “We recommend looking closely at your contract before making a change, as your current energy provider may charge you an exit fee and this will need to be taken into consideration when working out any potential savings – though it may still be worth switching.
“Take time to look at your current tariff, your average energy use and your monthly costs and look on a comparison website to see if a cheaper option is available. It’s also a good idea to take a meter reading at the start of each month, even if you have a smart meter, as it will ensure your energy usage is as accurate as possible.”
*according to Uswitch analysis
Outfox the Market
Outfox the Market
Outfox the Market
British Gas
So Energy
OVO Energy
British Gas
So Energy
OVO Energy
Octopus Energy
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