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For many bill-payers, the biggest potential savings are to be had by taking on a fixed-price tariff which is lower than Ofgem’s new price cap effective tomorrow (October 1).
These offers have dwindled fast as the cap rise approaches and will likely disappear soon.
‘The cheapest year-long fixes on the market right now are about 7% less than the new October price cap, but they might not be around long,’ says Martin Lewis of MoneySavingExpert.com.
According to consumer expert Helen Dewdney of The Complaining Cow, a dual-fuel fixed tariff from Outfox the Market works out to around 10% cheaper than the new cap.
After October 1, households could still save by fixing their bills. Economists expect the price cap to rise by another 3% in January, and it’s unlikely to fall significantly when it’s next reviewed towards the end of spring.
In any case, bill-payers should research the deals on offer and not rush any decisions.
Emily Seymour, energy editor at Which?, said: ‘Unfortunately, there’s no ‘one size fits all’ approach when it comes to fixing an energy deal as it will all depend on your individual circumstances.
‘You should compare what your monthly payments would be on a fixed deal with what you’d expect them to be if you remain with the price-capped variable tariff to see what the best option is for you.
‘As a rule of thumb, we’d recommend looking for deals around the price of the current price cap, not longer than 12 months and without significant exit fees.’
Which? magazine also has a checklist of other simple changes households can make to reduce their energy usage:
- Home insulation – for example, exposed hot water pipes can be insulated for as little as £15
- Draught-proofing – sash windows, loft hatches and cracks around the home can be covered with draught excluders. Save even more by making one at home by filling a piece of fabric (such as a pillow case) with old clothes or rice.
- Use appliances more efficiently – for example, doing laundry at 30°C instead of 40°C saves around 38% on energy costs.
- If you have a condenser tumble-dryer, consider replacing it with a heat-pump version – these cost on average around £80 a year less to run, meaning they pay for themselves in a few years
- Adjust your boiler settings – for example, hot water tanks can be set to only heat when you need hot water, and on-demand combi boilers can be run for cheaper by reducing the water temperature or radiator flow. One study found gas bills can be lowered by up to 8% just by reducing radiator flow.
- Boiler servicing – get your boiler services and ask your engineer to check it’s running as efficiently as possible.
