Households that fail to switch to a fixed energy tariff could face an extra £221 on their annual bills, according to a new analysis by comparison site Uswitch.
Analysis reveals potential savings
The research shows that the average standard variable tariff (SVT) customer is paying £1,928 a year, while the cheapest fixed deal on the market is £1,707. That means SVT customers are paying £221 more than they need to.
According to Uswitch, the gap between the cheapest fixed deal and the SVT has widened in recent months, making it more important than ever for customers to shop around.
Why fixed tariffs are cheaper now
Energy prices have fallen from their peak in 2022, and suppliers are now offering competitive fixed deals to attract customers. However, many households remain on expensive SVTs, which are often the default tariff after a fixed deal ends.
Richard Neudegg, director of regulation at Uswitch, said: “With the gap between the cheapest fixed deals and standard variable tariffs now at £221, it’s clear that households could be missing out on significant savings by not switching.”
How to switch and what to consider
Switching energy supplier is straightforward and can be done online in minutes. Customers should compare deals on comparison sites and check the exit fees and contract length before committing.
Uswitch recommends that households check their current tariff and compare it with the best available deals. Even if a fixed deal is not the cheapest, it can provide price certainty for a year or more, protecting against future price rises.
Impact on households
With the cost of living still high, an extra £221 a year is a significant sum for many families. The analysis highlights the importance of regularly reviewing energy bills to ensure they are on the best deal.
Neudegg added: “Energy bills remain a major concern for households, so taking a few minutes to compare deals could make a real difference.”
