Energy consumers have been alerted to the possibility of overpaying for their gas and electricity following a recent hack on British Gas. UK comparison and switching service, Uswitch, has advised individuals to take action to avoid paying higher rates this winter. The announcement came in response to Ofgem’s confirmation that the price cap for a standard household using both gas and electricity, and paying via Direct Debit, would increase from £1,568 to £1,717 at the start of the month.
In an effort to help consumers combat rising energy costs, Uswitch has shared a deal from British Gas that could save customers nearly 10%, undercutting the price cap significantly. The Fixed Tarrif v5 plan from British Gas offers an average annual cost of £1,555 for typical energy use. Additionally, Uswitch highlighted alternative fixed deals from EDF and OVO Energy, providing more options for consumers to consider.
These fixed tariffs are set for a year and come with early exit fees ranging from £25 to £50 per fuel. While energy rates are expected to remain elevated until April 2025, with potential further increases in the price cap, fixed tariffs can offer some protection against fluctuating costs. It is essential for consumers to understand that fixed tariffs cap the unit rate and standing charge, not the total amount paid, which can vary depending on individual household consumption.
Industry experts anticipate minor fluctuations in the price cap in the coming months, with different suppliers offering competitive rates for consumers seeking to manage their energy expenses. As the energy market continues to evolve, consumers are encouraged to explore available deals and consider switching suppliers to potentially save on their energy bills. Stay informed to make the best decisions for your household’s energy needs.