The price cap will rise by £63 in October, the third increase this year. That adds roughly £5.25 a month to a typical dual-fuel bill, but the real sting is what it signals: the cheapest fixed-rate deals are already disappearing.
A new analysis, as reported by AOL.co.uk, suggests Brits could save up to £280 a year simply by switching energy supplier or tariff. That is not a theoretical figure, it is the gap between the average standard variable tariff and the best fixed-rate deals available today. For a 3-bed semi using 12,000 kWh of gas and 2,900 kWh of electricity, that saving is real and bankable.
Who qualifies, and who doesn’t
Every household on a standard variable tariff qualifies. That is roughly 11 million UK homes, according to Ofgem’s latest data. If you have never switched, or your last switch was before 2022, you are almost certainly overpaying.
The catch is that fixed-rate deals are not as generous as they were in 2021. The best rates now sit about 4–6% below the price cap, not the 20–30% discounts seen before the energy crisis. But £280 is still £280, enough to cover a month’s groceries or a quarter of a typical winter gas bill.
Ofgem requires suppliers to show you a clear comparison on your bill: your current unit rate, standing charge, and the cheapest deal they offer. If you see nothing, call them. They must also let you leave without exit fees if you are switching to a cheaper tariff.
What it costs a typical 3-bed semi
Energy Saving Trust figures show the average household spends £1,800 a year on gas and electricity under the current price cap. A £280 saving reduces that to £1,520, a 15% cut. That is roughly the same as adding 100 mm of loft insulation or fitting a smart thermostat with scheduling.
The saving assumes you switch to a 12-month fixed-rate deal with no exit fees. If you choose a variable-rate tariff tied to the price cap, you save nothing. The key is to compare unit rates, not just the headline annual figure. A fixed rate at 26p per kWh for electricity versus the cap’s 27.5p per kWh adds up over a year.
But do not assume all fixed deals are good. Some lock you in at rates higher than the current cap, then rely on the cap rising to make you feel smart. Read the small print. If the standing charge is also higher, the saving disappears.
How to switch, and by when
You can switch in under 10 minutes online. Use an Ofgem-accredited comparison site, MoneySavingExpert, Uswitch, or Citizens Advice’s tool. Enter your postcode and current usage. The site will show you the three cheapest fixed-rate deals in your region.
Do it before 1 October. That is when the price cap rises. Suppliers tend to pull their best fixed-rate offers just before a cap increase, knowing they can re-issue them at higher rates. If you wait until November, the £280 saving may have shrunk to £180 or less.
One caveat: if you have a prepayment meter, switching is harder. Some suppliers do not offer fixed-rate deals to prepayment customers. Check with your current supplier first. If they do not offer a cheaper tariff, ask about moving to a smart meter, that opens up more deals.
Households on standard variable tariffs can start comparing now. The process takes 10 minutes. The saving is £280. The deadline is 1 October. Do not let the cap rise take money you could keep.
Frequently Asked Questions
No. Switching energy supplier does not affect your credit score, and your gas and electricity supply will not be interrupted, the pipes and wires are the same. Only the billing company changes. Your new supplier handles the switch, which takes up to 21 days.
Check your exit fees first. If you are within 49 days of your fixed deal ending, most suppliers let you leave without penalty. If you have more than 49 days left, calculate whether the £280 saving outweighs the exit fee. In most cases, it does not, wait until your deal ends, then switch immediately.
