There are at least 13 tariffs that fall below the energy price cap (Image: Getty)
Thirteen energy tariffs are priced below the £1,862 cap announced by Ofgem, including deals from Octopus Energy, British Gas and Ecotricity, analysis shows. The regulator said on Wednesday (May 27) that its price cap will rise by 13% from July 1, driven by the ongoing conflict in the Middle East.
The jump equates to a rise of £18 per month for the average household using both electricity and gas, with households seeing an increase of 24% on their gas bills and 5% on their electricity bills. The typical household faces an annual energy cost of £1,862, up £221 on current levels, with early forecasts suggesting this will rise further still in October.
‘Save money now by switching’
Price comparison website Uswitch has listed 10 tariffs that fall below July’s cap. It said the cheapest fixed deal its experts found is £248 lower.
It said there are currently as many as 20 fixed-energy deals on the market that undercut the July rates, and the cheapest open-market tariff available is a 13-month deal from Fuse Energy.
The tariff is priced at £1,614 a year for an average household, which is £27 cheaper than the current April price cap and £248 cheaper than the July rates.
Uswitch warned that only one in seven (13%) of 4,000 survey participants plan to switch to a fixed deal before energy prices rise in July.
Ben Gallizzi, an energy expert from Uswitch.com, said: “Getting off a price-capped tariff should be an urgent priority for households.
“Locking in a fixed deal now will let you dodge these imminent price rises and keep your rates protected when the heating turns back on, especially as bills are predicted to rise again in October.”
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Meanwhile, Octopus Energy outlined three price-cap-beating tariffs following Ofgem’s announcement.
Its Octopus Fixed tariff is currently priced at £1,780, saving customers around £82 a year compared to the July price cap.
Octopus Tracker is the UK’s first tariff directly linked to wholesale energy prices.
Rates are updated daily based on independently published market prices, so when wholesale prices drop, customers’ bills do too.
Over the past 12 months, customers saved an average of £148 on their energy bills compared to Octopus’ Standard Variable Tariff (SVT), according to the energy firm.
Agile Octopus updates rates every 30 minutes in line with wholesale rates. Over the past 12 months, customers saved an average of £437 on their energy bills compared to Octopus’ SVT.
Greg Jackson, Founder and CEO of Octopus Energy Group, said: “We’re working hard to keep bills as low as possible – pricing below the cap, offering cheaper fixed and smart tariffs, and expanding support for those who need it most. But Octopus can only do so much.
“We desperately need big decisions from the Government to reduce the impact of global gas prices and slash the cost of electricity.
“Tweaks are not enough, and British families and businesses will continue to suffer until the market is overhauled.”