The news follows the withdrawl of the two cheapest fixed tariffs in the market by EDF Energy and ScottishPower, after receiving a surge in applications in reaction to the 9% price-rise announcement from the second largest energy supplier, SSE.
Zoe Double of ICIS Heren said: “I would be quite keen to fix my bills now. If the eurozone crisis subsides over the next few months, global economic activity should rise and push up energy prices.
“Though the wholesale spot price is depressed now, the forward price, for delivery in summer and winter 2013 is rising.”
Wholesale energy price for winter and summer 2013 have been rising, with wholesale gas for delivery in winter 2013 up 2.9% since the start of the year, and electricity rising 3.4%. The Bank of England has also previously predicted that gas and electricity bills could rise by around 2.5% come winter.
Fixing a ‘no-brainer’
However, the gloomy news has been tempered by the continued availability of a number of strong fixed deals. First Utility and ScottishPower both still have plans available with fixed prices until December 2013.
Tom Lyon, energy expert at uSwitch, said: “People have quickly grasped that paying a low price today, coupled with a price guarantee and no exit penalties, makes fixing your prices a real no-brainer.
“It gives peace of mind coupled with flexibility, vital for consumers as we head into what could well be a winter of price rises.”
First Utility’s iSave Fixed V3 is the cheapest fixed plan currently available, costing £1,040* on average with prices fixed until December 2013, although there is an exit fee (£60 dual-fuel). ScottishPower’s Online Energy Fixed Jan 2014 has no exit fee but costs slightly more (£1,052* on average).
Energy tariff ending – Find out what to do when your fixed deal comes to an end.
Fixed price energy – Should you switch to a fixed deal, and if so which one?
*Based on the customer will be paying by Direct Debit and using on average 3,300kWh of Standard Rate electricity and 16,500kWh of gas each year.