Millions of households are being advised to consider changing their energy provider due to a recent increase in winter energy prices. The regulator Ofgem has raised the price cap by 2%, resulting in the typical annual gas and electricity bill reaching £1,755. This price hike coincides with dropping temperatures, leading to higher energy consumption at the elevated rates.
Experts recommend that approximately 34 million customers currently on a standard variable tariff, affected by the price cap rise, could save money by switching to a fixed-rate deal. According to MoneySuperMarket, by making this switch, the average consumer could save up to £271. The most cost-effective deals available in the market range from around £1,429 to £1,643.
Laura Hinton from MoneySuperMarket Energy highlighted the importance of switching, especially since around 66% of households are on a standard variable rate. As winter approaches and energy usage surges, consumers are likely to see a spike in their bills.
Consumer group Which?’s energy editor, Emily Seymour, emphasized the need to explore cheaper deals below the price cap. Seymour advised consumers to search for deals cheaper than the current price cap, with contracts not exceeding 12 months and without hefty exit fees.
Debt charity StepChange reported a 32% increase in energy-related arrears among clients over the past two years. Simon Trevethick, the head of communications, expressed concerns about the financial strain on households facing rising energy costs during the colder months.
Ofgem’s price cap is set to rise by an average of over £35 per year for a typical dual fuel customer paying through monthly direct debit. Among the 34 million customers affected by the price cap, roughly 20 million pay through direct debit, eight million upon receiving the bill, and six million have pre-payment meters. The popularity of fixed tariffs has increased, with around 20 million accounts opting for this type of plan.
Industry experts from Cornwall Insight predict a decrease in the price cap to £1,725 per year for a typical dual fuel household starting in January. However, it foresees a subsequent £100 increase in April the following year. Dr. Craig Lowrey, a principal consultant at Cornwall Insight, cautioned that the temporary reduction in bills should not be mistaken for a long-term trend towards lower energy costs.
Minister for Energy Consumers Martin McCluskey highlighted government initiatives to support vulnerable families during winter, such as expanding the Warm Home Discount and introducing a home upgrade program. The government aims to reduce dependency on fossil fuels by promoting clean, domestically sourced energy solutions.
Consumers on standard variable tariffs who are hesitant to switch providers are encouraged to check with their current supplier for fixed-rate deals. However, exploring other suppliers for competitive offers is recommended.
MoneySuperMarket outlined various energy deals, including Home Energy’s Fair Variable Dual tariff, Outfox Energy’s ‘Outfox the Price Cap – Oct 2025 12M v7.0’ deal, and E.on Next’s ‘Next Direct Fixed 12M v5’ plan. Uswitch also highlighted deals from Outfox, Fuse Energy, and EDF Energy’s ‘Simply Fixed Oct26v4’ plan, stressing the importance of reviewing all options before making a decision.
The Energy Saving Trust suggested cost-effective tips to reduce energy bills without changing providers. Simple actions like installing draught proofing strips, bleeding radiators, and using heating controls efficiently can lead to significant savings. Additionally, insulating walls and pipes can help retain heat and cut down on energy costs.
For more energy-saving tips and advice, visit the Energy Saving Trust’s website to prepare your home for winter.
