Outfox the Market has introduced a new fixed-rate energy deal, promising to undercut average energy bills by up to 13 percent.
The Fix’d Dual Apr24 v1.0 deal boasts electricity rates approximately 13 percent cheaper than the average Ofgem price-capped bill, along with gas rates 9 percent lower. For households with average gas and electricity consumption, this translates to an annual saving of £146.06 compared to remaining on the price cap, with actual savings contingent on individual energy usage and location.
Launched this month, the deal spans 12 months and features no early exit fees, making it an attractive alternative to the typical energy bill averaging £1,690 per year, set by the Ofgem price cap. However, whether it’s worth signing up for depends on individual circumstances.
The Ofgem price cap regulates the maximum charges for gas and electricity units, as well as standing charges, on variable-rate energy deals paid via direct debit. The cap, introduced amid rising energy prices and company collapses, has been set at 24.5p per kilowatt-hour (kWh) for electricity and 6.04p per kWh for gas since April 1, with standing charges at 60.1p and 31.43p per day, respectively.
Contrastingly, the Outfox the Market Fix’d Dual Apr24 v1.0 deal offers electricity at 21.22p per kWh (13 percent cheaper) and gas at 5.55p per kWh (9 percent cheaper). However, it imposes standing charges of 60p per day for electricity and 30.94p for gas, only marginally lower than the price-capped standing charges.
Analysts at Cornwall Insight anticipate the average price-capped bill to decrease to £1,559.61 in July, rise to £1,636.44 in October, and slightly increase to £1,634.20 by January 2025. Consequently, subscribers to the Outfox the Market fixed-rate deal stand to save £15.67 annually between July and October, £92.50 between October and the end of 2024, and £90.26 for the initial three months of 2025, based on Cornwall Insight’s forecasts and average energy usage parameters set by Ofgem.
Alternatives to the Outfox the Market deal are limited, with few competitive energy deals available surpassing the price cap. Eon Next offers one such alternative with its Next Pledge tariff, a variable-rate energy deal promising to stay £50 below the price cap for 12 months, providing approximately a 2.9 percent yearly saving at current energy prices. However, online account management and a smart meter installation are prerequisites for this tariff.
While cheaper fixed-rate energy deals may exist for existing customers offered by various suppliers, these rates are not typically made public. Customers considering such offers should scrutinize unit rates, standing charges, overall yearly costs, and potential early repayment charges before making a decision.