In its upcoming Spring Budget announcement, the government is expected to confirm that the Energy Price Guarantee will remain at its current level of £2,500 for a further three months instead of rising to £3,000 for 12 months.
Uswitch analysis shows that if this occurs, the fact that wholesale prices have also dropped 60% since December 2022 means that suppliers could offer fixed energy deals between £2,200 and £2,500.
They would be able to take advantage of pent-up demand from customers who have had no control over their energy bills since 2022. Although fixed deal prices starting at £2,200 would be significantly more than they were before the crisis began, 70% of households at least want the option of signing up to a fixed deal.
Uswitch.com is therefore calling on energy suppliers to start bringing fixed deals back to the market in order to give consumers more choice and certainty.
Richard Neudegg, Director of Regulation at Uswitch, said: “We see no good reason why suppliers can’t begin to act on lower wholesale prices and offer fixed deal options to energy customers as soon as possible.
“Households have been witness to a rollercoaster of price rises and uncertainty over the last couple of years, while relying heavily on temporary measures such as the Energy Price Guarantee in order for costs not to spiral further.
“And although energy costs remain historically high, bill-payers deserve the freedom to choose a fixed deal if they feel it is their best option.
“For many energy customers, it is not just about the money. Many are stuck with their supplier and lack the ability to vote with their feet and move to one offering other benefits such as better customer service.
“With current price cap predictions for July at £2,153, households will need to think carefully before committing to a fixed deal in the coming months. Some may want to lock in the certainty of a lower price sooner, ahead of next winter, and others may wait to see what happens to the market.
“Energy suppliers should ensure that consumers can reap the benefits of a lower wholesale market by bringing back fixed deals now.”
