Best Energy Deals

UPDATE 3 FEBRUARY 2022: Please note that the UK energy market has undergone significant changes since this page was created last year. You can find out more about recent events via our rolling energy blog, which contains details of movements of the energy price cap and the government’s response.

In short, there are currently no competitive deals available at less than the current price cap of £1,277 a year for average consumption users.

We do not yet know whether there will be deals prices below the price cap which comes into effect on 1 April 2022. This will stand at £1,971 a year.

These figures relate to the cap as it applies to a typical household using an average amount of energy and paying via a dual fuel (gas and electricity) variable rate tariff using direct debit.

If you’re on a fixed-term, fixed-rate energy tariff that ends in September, you need to act quickly to find another competitive deal.

Our data shows that over 150 fixed tariffs come to an end during this month. If tariff-holders do nothing, they will likely be moved by their supplier onto a relatively expensive ‘default’ tariff and start paying more for their energy.

So if you’re not sure when your tariff ends, it’s well worth checking your latest bill or contacting your supplier to find out.

Top 10 biggest price increases for tariffs expiring by 30 September 2021

Fixed or variable tariff?

Fixed-rate tariffs are usually among the most competitive on the market. Compared to variable rate tariffs, they are often cheaper, and they come with the guarantee that the price per unit of energy you use during the term – usually 12 months, sometimes 24 – will remain the same.

With a variable rate deal, as the name suggests, the rate can go up or down as the supplier dictates, so long as it remains within the price cap set by the energy regulator, Ofgem.

The price cap was introduced by Ofgem, at the behest of the government, precisely because variable rates were so expensive. With the cap currently standing at £1,138 a year for typical households, there are dozens of cheaper fixed tariffs from which to choose, with typical prices as low as £860 a year.

The cap will remain at this amount until the end of September. From 1 October 2021, the cap will then rise by £139 to stand at £1,277, its highest-ever level. This figure will remain in place until the end of March next year.

Ofgem specifically advises consumers on standard variable rate tariffs (SVT) to switch and fix a lower price for their power.

Are you on an SVT energy deal? Use our tool to see what you could have saved compared to if you’d been on the cheapest fixed rate deal at the time.

Energy: Have You Been Overpaying?

Ofgem SVT Default Price Cap

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Price Cap Announcements

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* annual saving if a customer with average consumption on a dual-fuel default tariff
priced at the level of the cap moved to the cheapest available tariff at the time
Data: Comparison Tech 2021

There are a number of competitive variable rate deals are currently available. But market-watchers have noted steep increases in wholesale energy prices – and these will feed through to domestic bills. Remember, where fixed tariff prices are locked in for the duration, variable rates can be hiked by the supplier at any time.

Top 10 cheapest energy tariffs

Exit fees safe zone

The fixed-term nature of fixed tariffs means many of them include exit fees, which are charged if you decide to leave during the term. These are usually set at £30 per fuel, so you’d pay £60 to leave a dual fuel gas and electricity deal ahead of time.

But, under Ofgem rules, you can’t be charged exit fees within 42 days of your tariff coming to an end, so anyone with a fixed tariff ending in September is now comfortably within the grace period where they don’t need to worry about fees.

The actual switching process should take no more than 21 days under Ofgem’s energy supplier licensing regime, so prompt action should ensure you can move over to another fixed tariff before you slip onto an expensive default deal.

You can find out more about switching here.