A BIG energy supplier has launched a market-leading fixed energy deal that’s £265 cheaper than Ofgem’s price cap.
British Gas, if offering customers the chance to fix and lower their bills for the next 12 months.
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Available exclusively through MoneySuperMarket, the British Gas Fixed Tariff v63 is priced at £1,584 a year – £265 below Ofgem’s current price cap and £99 cheaper than Cornwall Insight’s July price cap forecast.
This deal could benefit millions, as over 22million households on standard variable tariffs remain directly impacted by the price cap which changes every three months.
Currently, the price cap sets annual energy costs at around £1,849.
Analysts at Cornwall Insight predict this will drop by nearly 9% to £1,683 in July.
However, many households may still pay more than Ofgem’s headline figure.
This is because the price cap doesn’t cap total bills but limits the maximum cost per kilowatt-hour (kWh) of gas and electricity, along with daily standing charges.
By choosing a fixed deal, customers can lock in consistent rates for a set period, potentially avoiding fluctuations in energy prices.
Kara Gammell, personal finance expert at MoneySuperMarket, said: “This British Gas fixed deal is currently the cheapest of all major energy suppliers in the UK, and could save customers over £260 a year on their energy bills.
“Switching to a fixed tariff like this one can make budgeting your monthly and annual bills easier, as well as offering protection from any future price cap rises.”
Of course, opting for a fixed energy deal carries the risk that, if energy prices drop further, you might end up paying more than you would on a variable tariff.
However, analysts have long said that households should not anticipate any significant drops in prices this year.
If you’re interested in signing up for the British Gas fixed tariff, you can do so by visiting moneysupermarket.com/gas-and-electricity.
Hurry, though – the offer is only available until 5pm tomorrow (May 1).
How can I check future price cap predictions?
EDF Energy has launches a brand new Ofgem price cap prediction tool on its website.
The energy company updates the tool with new information about changes to the cap on energy prices every Tuesday.
It also includes advice on how this affects your energy tariff choices.
You can find out more by visiting www.edfenergy.com/gas-and-electricity/price-cap-predictions.
Customers signing up for British Gas’ latest fixed tariff can also take advantage of discounted electricity sessions on Sundays through the Peak Save Sundays scheme.
This initiative offers eligible customers half-price electricity between 11am and 4pm every Sunday.
To join the scheme, visit britishgas.co.uk/energy/peak-save.html and submit your application.
If successful, British Gas will notify you, and your savings will appear as “PeakSave Credit” on your next energy bill or online statement.
The scheme is only available to customers with a smart credit or prepayment meter capable of sending half-hourly readings.
If you don’t already have a smart meter, British Gas will install one in your home free of charge.
How can I find the cheapest fixed deals?
To find the best fixed energy deals, start by visiting price comparison websites, which aggregate various offers from different energy suppliers.
The best sites include Uswitch.com and MoneySavingExpert’s Cheap Energy Club.
Enter your postcode and current energy usage details to receive a list of available deals tailored to your needs – it’ll take you less than five minutes.
You’ll then be able to compare the rates, contract lengths, and any additional features or benefits offered by each deal.
Next, visit the websites of individual energy suppliers to check if they have exclusive deals that are not listed on comparison sites.
Sometimes, suppliers offer special promotions or discounts directly to customers.
Compare these offers with those on the comparison websites to ensure you get the best possible rate.
Finally, consider customer service reviews and the overall reputation of the suppliers.
Once you have identified the best deal, follow the instructions to switch your energy provider.
What energy bill help is available?
There’s a number of different ways to get help paying your energy bills if you’re struggling to get by.
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves paying off what you owe in instalments over a set period.
If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.
Several energy firms have schemes available to customers struggling to cover their bills.
But eligibility criteria vary depending on the supplier and the amount you can get depends on your financial circumstances.
For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.
British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.
You don’t need to be a British Gas customer to apply for the second fund.
EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.
Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerable households, such as those who are elderly or ill.
Some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.
Get in touch with your energy firm to see if you can apply.