Energy prices are set to rise 6% on April 1st with many households facing higher energy bills. The price cap, which sets the maximum rate that energy suppliers can charge for each unit of energy and daily standing charges, will increase, bringing the annual cost for a typical household to £1,849.
For the majority of households who are on standard variable tariffs, this increase means paying more for the same amount of energy used. However, there is an opportunity: switching to a different energy tariff and locking in a cheaper rate before the increased price cap can help to save money and achieve some peace of mind; fixed-rate tariffs in particular avoid the impending price hike.
Why switch now?
- Cost savings: If you switch to a fixed-rate tariff, you can secure a lower rate than the standard variable tariff, potentially saving hundreds of pounds annually.
- Price stability: The benefit of fixed rate tariffs is that they provide price certainty, protecting you from future increases in energy costs over the term of the tariff (usually 12 or 24 months).
- Ease of switching: Switching energy suppliers is straightforward, either online or over the phone. Additionally, many suppliers offer incentives to new customers, such as cashback or discounts.
Steps to switch
- Compare tariffs: Use switching comparison websites to identify the best deals available. Look for out for tariffs that offer lower rates and favourable terms.
- Check contract terms: Ensure you understand the terms of the new tariff, including any exit fees or contract length.
- Contact your new supplier: Once you’ve chosen a new tariff, contact the supplier to initiate the switch. They will handle the process, including notifying your current supplier.
Switching to a different energy tariff before the April price cap increase is a proactive step that can create significant savings and greater financial stability. Given the ease of switching and the potential benefits, now is the best time to explore your options and make that switch.
