Save £300 a year as fixed-rate energy deals near end

MORE than 60 fixed-rate energy deals will come to an end next month – and those on one can save up to £300 a year by searching for a new provider.

Failure to do so could result in more than 200,000 households automatically being rolled on to a costly standard variable rate tariff.

Now is a good time to switch to a new fixed-rate deal as the Covid-19 crisis has caused oil prices to plummet – and energy bills should fall by an average of £30 a year.

Industry regulator Ofgem’s rules allow households to apply to switch provider up to 49 days before a fixed-rate deal ends. So, even if a household’s deal ends in June they can arrange the move now.

A spokesperson for comparison website Uswitch says: ‘Fixed-rate deals mean you can lock into a great priced offer without fear it will change. But be wary of any early exit penalties as savings can be lost if you move suppliers during the agreed contract period.

‘Variable deals can initially look great but the prices are often raised once you have signed up.’

Among those that profit most from customers failing to switch when their fixed-rate deal ends are British Gas, Npower and Utility Warehouse.

Although households can save money by simply switching to a new fixed-rate deal with the same provider, they are usually better off finding a new outfit to supply their gas and electricity.

Comparison websites such as Uswitch and Energyhelpline can help find a better deal – with households only required to tap in details of their existing deal and address.

However, some switching firms, such as Flipper, Look After My Bills, Switchd and Switchcraft, should automatically switch you to a better deal when an old offer ends.

Among the suppliers currently offering the best fixed-price deals are Tonik Energy, Together Energy, Avro Energy, Octopus Energy and Bulb.