Personal Finance

Urgent alert to 320,000 households with chance to save £410 on energy bills

Hundreds of thousands of UK households could save £410 by switching energy providers this month, analysis suggests.

A total of 324,715 energy customers signed up to a fixed tariff in June and July in 2023 as deals cheaper than the energy price cap returned to the market.

With those tariffs now coming to an end, customers are being urged to find a new fixed deal or face being automatically rolled on to the standard variable rates.

Households could make a combined saving of £133 million if they all switched to the cheapest deal currently available, USwitch calculates.

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And they are being urged to investigate new deals now as customers are able to leave a tariff 49 days before it ends without paying an exit fee.

In June 2023, the cheapest energy deal was So Energy's £1,950 for the average home. If a So Energy customer was moved onto the current price cap - which is £1,690 - they would save £260.

However, they could save £410 if they took the cheapest deal on the market now, which is from Ecotricity at £1,540.

That is cheaper than the new price cap, which is £1,568 from July 1 to September 30 2024.

Read more: Energy Switching Guide

Elise Melville, energy expert at Uswitch.com, said: “The deals available are the lowest we’ve seen since late 2021, with some fixes even cheaper than the forthcoming price cap.

“Consumers wanting to benefit from these cheaper deals may need to act fast to lock in these rates while they are available.

“Signing up to a fixed deal is the only way to lock in certainty over what you will pay for a set period of time, and prices are expected to rise again this winter.”

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Helen Barnett

Helen is a journalist, editor and copywriter with 15 years' experience writing across print and digital publications. She previously edited the Daily Express website and has won awards as a reporter. Read more here.

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