Millions of households are 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 price hike coincides with the colder weather, leading to higher energy consumption at the elevated rates.
Experts suggest that approximately 34 million customers still on a standard variable tariff could benefit significantly by switching to a fixed deal. MoneySuperMarket reports that switching could save the average customer up to £271, with the current best deals ranging from around £1,429 to £1,643.
Laura Hinton from MoneySuperMarket Energy highlighted that a majority of households are on standard variable rates, which will lead to increased bills during the winter months as energy usage rises. Emily Seymour, energy editor at consumer group Which?, emphasized the importance of exploring cheaper deals than the price cap, with recommendations to opt for deals shorter than 12 months and without hefty exit fees.
Debt charity StepChange observed a 32% increase in energy-related arrears among its clients over the last two years, indicating the financial strain on households. Minister for Energy Consumers Martin McCluskey mentioned initiatives to support vulnerable families during winter, such as expanding the Warm Home Discount and launching a home upgrade program.
For households considering staying with their current provider, exploring fixed deals is advisable. MoneySuperMarket highlights options like Home Energy’s Fair Variable Dual tariff at £1,492.30 annually and Outfox Energy’s ‘Outfox the Price Cap – Oct 2025 12M v7.0’ deal at £1,523.31 for the average customer. Other suppliers like E.on Next offer fixed deals at an average of £1,643.20 per year.
Additionally, implementing energy-saving tips can help reduce energy bills without switching providers. Simple measures like installing draught-proofing strips, bleeding radiators, and using heating controls efficiently can lead to significant savings. Insulating walls and hot water tanks, adjusting thermostat settings, and optimizing heating usage are effective ways to cut down on energy costs and enhance energy efficiency.