Utility Warehouse (UW) has launched a new fixed energy tariff priced £388 lower than Ofgem’s current price cap.
The three-service Fixed Saver 15 tariff is 20 percent below the cap at £1,540 and it’s available to customers who take energy and switch at least two of their existing services – from broadband, mobile or insurance – to UW.
The new tariff also saves customers £150 against the April price cap, which will drop by 12 percent to £1,690 a year on average for a typical duel-fuel household.
UW is also offering a cheaper tariff to people who want energy and just one other UW service at £1,590 for the year.
The tariffs are fixed until April 2025 and are available to both new and existing customers.
David Walter, chief commercial officer at Utility Warehouse, said: “By signing up to our new market-leading Fixed Saver 15 tariff, customers can make significant savings and lock in their energy bills for the next 12 months.
“Not only is this tariff well below the current price cap, it’s also cheaper than the new price cap in April, giving customers price certainly well into 2025.”
More people are considering fixed rate tariffs now amid price uncertainty, new research shows.
Green gas and renewable electricity supplier 100Green found that almost two-thirds (63 percent) of people surveyed are considering fixing their energy.
Of those who had already fixed, 46 percent said they want to have more control over their monthly spending, and two-fifths (37 percent) said they are worried about being able to afford their energy bills over the next year.
One in seven (13 percent) said they feel confused, but it feels like their ‘safest option’.
Doug Stewart, chairman of 100Green commented: “Our research has shown that searches for fixed deals are rising across the board, indicating that the public are concerned about market volatility and want the ability to take control of their finances where they can.”
But while the energy market is unpredictable, due to it largely being impacted by global events, experts forecast that energy regulator Ofgem will lower the price cap further over the course of the year.
The price cap is reviewed every three months, and the markets predict prices to fall a further seven percent in July before marginally rising again in October. So, it’s important to consider this before locking into any fixed rate tariffs.
Money Saving Expert Martin Lewis has been pointing customers looking to make a saving in the direction of E.ON Next’s Pledge tariff, as it provides a three percent discount on whatever the price cap changes to.
Speaking in January on ITV’s This Morning show, Mr Lewis said: “The only tariff that I would suggest people have a look at and see if it’s right for them is the E.ON Next Pledge tariff, which is available not just to E.ON customers, you can switch to it.
“It’s basically the price cap, with a three percent discount. So for the next year, whenever the price cap moves, this one is three percent cheaper.
“So if you’re going to be sticking on the price cap anyway, you may as well stick on the price cap but pay three percent less for it.”
People can find out about alternative energy tariffs below the current price cap here.