Energy provider launches new fixed tariffs up to £183 below October price cap

Utility Warehouse has announced the launch of three fixed energy tariffs priced up to £183 below October's new price cap.

The energy regulator Ofgem will raise the price cap by 2% between October 1 and December 31, pushing average energy bills up for a typical dual-fuel household on a variable tariff by around £2.93 per month or to £1,755 per year. Latest figures show more than a third of energy customers (37%) are now on fixed tariffs, which means they are protected from the upcoming rise. Those who aren't on a fixed tariff have been urged to compare deals and fix as unpredictable and volatile wholesale gas prices could see bills jump further.

Utility Warehouse's new deals include an energy-only fixed tariff priced at £1,582 for the year, marking a £173 saving on October's cap.

Customers who bundle services may be able to make even larger savings. The provider offers even cheaper energy deals to those who switch at least two of their existing services, such as broadband or mobile, to UW.

UW's Fixed 59 and Fixed Saver 59 tariffs will see annual bills average £1,577 and £1,572 respectively - saving customers £178 or £183.

David Walter, chief commercial officer at UW, said: "While other energy suppliers use the price cap as a pricing guide, we do things differently. Utility Warehouse consistently offers energy bills below the price cap when customers bundle with us. And we're superchanging that today with our new fixed tariffs, including a price-cap-busting energy-only fixed tariff."

Outfox Energy is offering even larger savings with its 12-month fix. The average energy bill for a typical household will be £1,463 per year, a significant £292 saving on October's upcoming cap.

Richard Neudegg, director of regulation at Uswitch.com, said: "Households should run a comparison and review the options available for their usage levels and region. Fixing your energy tariff to cheaper rates should be a no-brainer for all households who are able to."

He added: "Savings equivalent to £292 a year are already available compared with this incoming price cap.

"We all typically use a lot more energy over winter compared to summer. The cost of doing nothing now means an extra £76 per month on average for energy bills from October to December, on top of rates already higher than the majority of fixed tariffs.

"This has been a particularly strong few weeks for good fixed-rate deals, with around 27 fixed deals available which beat the October cap. Over a third of households have now moved off the price cap to fixed tariffs."

People can use a comparison site like Uswitch or Money Supermarket to compare energy tariffs.