Households selecting fixed energy tariffs might encounter an unexpected financial burden as the current cheapest fixed rate tariff is estimated to be £130 higher on average than the anticipated April default tariff cap.
That’s according to analysis by Cornwall Insight, which suggests the existing fixed rate tariff stands at £1,753 per annum, exceeding the projected cap by £133.
Fixed tariffs, offering stable energy rates for a specified duration, pose a risk of exit fees if customers decide to switch before the contract expires.
With 35 fixed-rate tariffs available in the market, consumers are urged to consider potential cost variations.
While the April cap level could undergo adjustments before the official announcement in February, Ofgem has already progressed two-thirds into the “observation window” used for calculating the cap’s wholesale element, indicating minimal changes.
