Prices are on the up and products that used to be the best on the market are being pulled.
In fact, wholesale energy prices are the highest they have been since the beginning of this year, while three out of the six energy giants have withdrawn their best deals only to be replaced by deals that are 3.4% more expensive on average.
According to moneysupermarket.com, npower, Scottish Power and SSE Atlantic have all pulled their best deals.
That means the cheapest deal available is E.ON's Save Online v2, with an average bill of £882.71. Of course, there are no guarantees that this deal will remain available.
Should I fix my energy prices?
Those who are languishing on their providers' standard tariff could save up to £325 by switching to the best deal. However, it's vital to act fast to secure the best energy deal possible.
At present, the best deals available are variable rate products, where the price can change. Unfortunately, these wouldn't shield you from price hikes if costs start to rise.
That's making fixed rate tariffs an attractive option for many people, even though they tend to be more expensive. Fixing the price of gas and electricity can be a good way to protect your home from any further price hikes, especially in the run up to winter.
What if you have a fixed energy deal that finishes towards the end of the year? Should you switch now or wait? The first thing to check is your provider's smallprint, as many will charge you a termination fee if you choose to end your contract early. Use our comparison tool to find out what savings you could make. Sometimes the savings will outweigh the fee you will pay to your provider for switching. If not, find out when your deal ends so that you can move.
Where is the cheapest fixed price energy tariff?
The cheapest fixed tariff at the moment is Go Fix v2 from npower, which would cost the average home £902.38 a year. Compare this to the average annual standard bill of £1,169.49 and you'll see there are potential savings of almost £270 up for grabs. However, Scott Byrom, moneysupermarket.com's energy expert, has warned that this deal is likely to end any day - so if you want to take advantage, you should move fast.
Many fixed price energy deals are due to end over the next month or so. You can see a table of the deals ending soon in our article 'Is your fixed energy tariff about to end?'.
If your household is on one of these deals then it's time to act, otherwise you could be placed onto your provider's standard tariff, meaning you'll be missing out on the cheapest energy prices.
|
Provider |
Average standard tariff |
Average online/best tariff |
Fixed tariff |
|
British Gas |
£1,157.27 |
£898.82
WebSaver 8 |
N/A |
|
EDF Energy |
£1,158.57 |
£903.74
Online Saver V6 |
£1,098.96
Annual Fix v3 |
|
E.ON |
£1,151.63 |
£882.71
SaveOnline v2 |
N/A |
|
npower |
£1,196.33 |
£889.73
Sign Online 19 |
£902.38
Go Fix v2 |
|
Scottish Power |
£1,289.54 |
£915.01
Online Energy Saver 10 |
N/A |
|
Scottish & Southern |
£1,158.76 |
£981.83
Go Direct 5 |
£909.00
Atlantic Online Fixed Price Sep 2011 |
|
First Utility |
£1,074.37 |
£889.00
iSave v3 |
N/A |
|
OVO Energy |
N/A |
£926.18
New Energy Fixed |
£926.18
New Energy Fixed |
British Gas customers
It's also emerged this week that British Gas customers who have been on its Price Promise June 2010 tariff and haven't yet switched have been automatically rolled over onto Price Promise 2011. That means they have been automatically fixed for another 12 months.
This product is £25 more expensive than its predecessor with an average bill of £1,152.60 a year and customers have until October 1 to decide whether or not to stick with this deal. If they move after this date, they will incur a £35 termination fee for each fuel, meaning a total potential fee of £70 to switch after that date.
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