Energy customers are advised to consider switching to a fixed energy tariff before expected price increases this autumn.
A fixed energy tariff keeps the customer’s unit rates and standing charge the same for the duration of the contract with the supplier.
However, the total bill depends on the energy usage – it’s calculated by multiplying the usage by the fixed unit rates and adding the standing charge.
Current forecasts suggest that the average direct debit for energy will rise by £155.
Ofgem will announce the new price cap on 27th August, with changes taking effect from 1st October to 31st December 2024.
The average annual energy bill is projected to increase from £1,568 to £1,723 in the final quarter of the year.
This increase is a 9.9 per cent rise from current levels but remains below the £1,976 recorded at the same time last year.
