Despite hopes of savings, news analysis suggests that households opting for fixed energy tariffs are unlikely to see significant reductions in their energy bills over the next year.
As energy prices continue to fall, there has been increasing interest in fixed tariffs among domestic consumers.
However, the study by Cornwall Insight indicates that the potential benefits might not be as impressive as anticipated.
Among the fixed deals available, four tariffs are priced below the typical consumer default tariff cap of £2,074 per year.
Utility Warehouse’s Fixed Saver, priced at £1,974 per year, emerges as the cheapest option.
Nevertheless, customers who opt for this fixed deal may find their energy bills closely in line with cap rates throughout the one-year term, as indicated by the current cap level and forecasts, according to the consultancy.
James Mabey, Analyst at Cornwall Insight, said: “Based on our current forecasts, customers are unlikely to lose out by taking a one-year fixed deal, however, it is doubtful these deals will result in significant savings, if any at all.
“While there are currently limited financial gains to be made from taking up domestic fixed tariffs, they offer a sense of security to consumers amidst the recent volatility observed in the energy market.
“The desire for stable prices among households may increase the number of people who sign up for the fixed deals.”
