Energy price cap rise: how to save £273 before October

The energy price cap will rise by £63 in October 2024, the third increase this year, hitting a typical household’s annual dual-fuel bill at £1,717. That is 10% higher than the same period last year, according to Ofgem’s latest quarterly update. For UK homeowners already stretched by mortgage rates and food inflation, this is another squeeze on disposable income.

Yet a window of opportunity has opened. As reported by The Sun, several energy suppliers are offering fixed-rate deals that undercut the new cap by as much as £273 a year. The catch: these deals are time-limited, and some require a quick decision before October 1st, when the cap takes effect.

Who qualifies, and who doesn’t

Fixed-rate deals are available to households on standard variable tariffs (SVT), roughly 28 million homes in Great Britain, per Ofgem data. But not everyone can switch. If you have a prepayment meter or are in debt to your supplier, options narrow. Also, some fixed deals come with exit fees of £30 to £60 per fuel, so check the small print before signing.

Households with an Energy Performance Certificate (EPC) rating of D or below may find fewer competitive fixed deals, as suppliers often price risk based on property efficiency. Improving your EPC to C or above, through loft insulation, cavity wall fill, or double glazing, can unlock better rates and lower your overall consumption. The Energy Saving Trust estimates a typical semi-detached home can save £200 a year by upgrading from EPC D to C.

What it costs a typical 3-bed semi

For a typical 3-bed semi using 12,000 kWh of gas and 2,900 kWh of electricity per year, the October cap means a monthly bill of roughly £143. A fixed deal at the current best rates, around £1,444 annually, cuts that to £120 per month. Over a year, that is £273 saved, enough to cover a week’s food shop for a family of four.

But the savings are not guaranteed for every region. Ofgem’s cap varies by distribution area; in some parts of the South West, the cap is 5% higher due to network charges, while in the North West it is 3% lower. Fixed deals also vary by postcode, so use a comparison site that accounts for your exact location, such as those accredited by Ofgem’s Confidence Code.

The ‘but’ pivot, what this misses

The headline saving of £273 assumes you are on the default SVT and switch to the cheapest fixed deal available today. Yet many fixed deals lock you in for 12 months. If the price cap falls again in January 2025, as some analysts predict, given falling wholesale gas prices, you could be stuck paying above the market rate. Cornwall Insight forecasts a 4% drop in the cap next spring, which would erase part of the saving.

Also, the deals promoted by suppliers often exclude households on benefits or those in fuel poverty. The Warm Home Discount, worth £150, is only available to low-income households and does not stack with all fixed tariffs. Check whether your chosen deal allows you to claim the discount separately.

How to act now, and improve your home long-term

First, gather your annual usage in kWh from your latest bill. Second, use an Ofgem-accredited comparison site, not a cashback aggregator, to find fixed deals in your postcode. Third, if you are eligible, switch before September 25th to ensure the new tariff starts before the October cap rise.

For homeowners looking beyond this winter, the Great British Insulation Scheme offers grants up to £1,500 for loft and cavity wall insulation. Improving your EPC by one band can cut your annual bill by £100–£200, according to the government’s own figures, and make you a more attractive customer for future fixed deals. The Boiler Upgrade Scheme also provides £7,500 toward a heat pump, which can reduce heating costs by 20–30% compared to a gas boiler.

Deadline: fixed deals offering the best savings are likely to be withdrawn by the end of September. Check your eligibility now, and if you are on an SVT, do not wait until October 1st, the cap will hit before you can react.