Several energy providers have introduced new one-year fixed-rate tariffs that are cheaper than the upcoming increase in the energy price cap. British Gas, E.ON Next, and Outfox The Market have announced deals with annual costs below £1,717.
Starting on October 1, average energy bills will rise by 10%, pushing the typical household’s annual energy cost to £1,717. This marks a £149 increase from the current cap.
Ben Gallizzi, an energy expert at Uswitch, stated, “Energy prices will rise for millions of households from October. Now is a good time to shop around for a fixed deal.”
Among the new offerings, Outfox The Market’s Price Cap (Oct 24) Fix’d Dual v1.0 is the most affordable, priced at £1,600 annually for average usage households—£117 less than the upcoming cap. E.ON Next’s Gust 12m v11/Next Fixed 12m v26 follows closely at £1,626, while British Gas offers its Fixed Tariff 12M v15 at £1,627. These deals provide potential savings for consumers, with British Gas’s offer being £90 cheaper than the October price cap.
Money-saving expert Martin Lewis has warned of a “very difficult winter” ahead, especially for low-income households and pensioners who will no longer receive certain cost-of-living payments. He advised consumers to fix their tariffs now, stating, “If you do nothing, you’ll be paying eight or nine percent more than you do now for the next year.” Lewis emphasized the importance of selecting affordable fixed deals, which could save consumers four to five percent over the next year compared to the price cap.
EDF Energy and Ovo Energy are also rolling out competitive fixed tariffs. EDF’s Essentials 1Yr Sep25 v3 is priced six percent higher than current rates but three percent lower than the October cap, and it includes £50 dual-fuel exit fees. Ovo Energy’s 1 Year Fixed offers similar pricing, with a three percent savings against the October cap, but it has higher exit fees of £100.
Sainsbury’s Energy has entered the market with its Fix and Reward 12m V25 tariff, which is priced six percent above current rates but four percent below the October cap. This deal includes 4,000 Nectar points for new customers, as well as additional points on Sainsbury’s purchases.
Customers should be aware that these deals may have specific requirements, such as the installation of smart meters or online account management. It is important to carefully review the terms and conditions before switching.
In addition to fixed tariffs, some energy providers are offering alternative options that track the price cap. E.ON Next’s Pledge v5 guarantees to remain three percent below every price cap and comes with no exit fees.