Millions of households are being advised to consider changing their energy provider due to a recent increase in winter energy prices. The regulatory body Ofgem has raised the price cap by 2%, resulting in the average annual gas and electricity bill reaching £1,755. This rise coincides with the colder weather, leading to higher energy consumption at the elevated rates.
Experts suggest that approximately 34 million customers who are still on standard variable tariffs, affected by the price cap increase, could benefit financially by switching to fixed-rate deals. According to MoneySuperMarket, switching to a fixed deal could save the average customer up to £271, with the most cost-effective deals currently offered between £1,429 and £1,643.
Laura Hinton from MoneySuperMarket Energy highlighted that a majority of households, about 66%, are on standard variable rates, which will result in higher bills during the winter months due to increased energy usage. Emily Seymour, energy editor at consumer group Which?, emphasized the availability of competitive deals below the price cap, urging consumers to explore their options before committing to a plan.
Debt charity StepChange reported a 32% increase in energy-related arrears among its clients over the past two years. Simon Trevethick, head of communications at StepChange, expressed concerns over rising bills coinciding with the onset of colder weather, impacting household finances significantly.
Looking ahead, Ofgem’s price cap is expected to decrease to £1,725 annually for a typical dual fuel household starting in January. However, projections indicate a subsequent increase of £100 in April next year. Minister for Energy Consumers Martin McCluskey announced initiatives to support vulnerable families during the winter, including expanding the Warm Home Discount and introducing home upgrade programs to enhance energy efficiency.
For those hesitant to switch suppliers, contacting their current provider for fixed-rate deals is recommended. MoneySuperMarket highlighted deals like Home Energy’s Fair Variable Dual tariff at £1,492.30, Outfox Energy’s ‘Outfox the Price Cap – Oct 2025 12M v7.0’ at £1,523.31, and E.on Next’s ‘Next Direct Fixed 12M v5’ at £1,643.20 for average customers.
Additionally, Energy Saving Trust provides cost-effective tips to reduce energy bills without changing providers, such as installing draught-proofing strips, bleeding radiators, and utilizing heating controls effectively. These measures can lead to significant savings ranging from £200 to £300 annually.