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Fix your energy rates now: cheapest energy deals are going up in price

Fix your energy rates now: cheapest energy deals are going up in price

Analysis shows that energy tariffs are becoming more expensive, as some of the cheapest energy deals are being removed from the energy market, alongside standard tariff price increases from small and mid-sized suppliers.

Some of the big six suppliers (British Gas, SSE, E.ON and EDF) have promised a freeze in prices until Spring.

What happens when the price freezes thaw?

One of those suppliers, EDF, has already committed to raising electricity prices by 8.4% when the freeze is over in March.

The provider’s standard variable tariff will rise by 8.4% on electricity but its gas prices have been cut by 5.2%. This will add approximately £13 to a household’s dual fuel bill and equals a total additional payment of £24 million for its standard variable customers.

In light of EDF raising prices, there is concern that potential price rises are on the cards for the other big six suppliers. The price freezes from other big six suppliers British Gas, SSE and E.ON are also due to come to an end in the spring.

If you're on a standard variable tariff, now could be the best time to switch and fix your rates so you're unaffected by any further price hikes.

The cheapest fixed deals are leaving the market

Uswitch research has seen how the cheapest energy deal on the market in July 2016 was IRESA's Flex 1 tariff, costing £734 per year. Today, the cheapest deal is IRESA's Flex 4 tariff, which, at £834, represents a 14% increase in six months.

Meanwhile, five of the big six energy suppliers have also hiked the price of their cheapest tariffs by an average of 16% or £135 since September. The cheapest deal on offer from E.ON has increased the most significantly by a staggering 26%, from a £760 per year tariff available in September 2016 to a £959 tariff today.

This is followed by SSE, whose cheapest fixed deal was £782 in September and is now £970. With a difference of £143 between the average big six cheapest deal and the cheapest fixed deal on the market, there are significant savings to be made by shopping around.

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