Fixed-rate energy tariffs have reemerged in the market in response to declining average annual energy bills.
Major energy suppliers, including British Gas, E.ON, Octopus Energy, OVO, So Energy, Utility Warehouse, EDF and Shell Energy are now offering fixed deals primarily for existing customers, with limited new customer offers available.
Ofgem stresses the importance of cautious consideration for customers when choosing a fixed tariff, given the ongoing uncertainty surrounding energy prices.
Signing up for a fixed rate now might result in missing potential savings if prices fall in the future.
Predictions suggest that standard prices under the price cap will likely decrease again in October, followed by a slight increase in January.
Currently, most households are on standard tariffs governed by the energy price cap, which sets limits on gas and electricity charges per unit and includes a daily standing charge cap.
As of 1st July, the energy price cap reduced to £2,074 per year for typical direct debit payers, representing a 17% decrease from the previous cap.
Although the rate drop is significant, it may not fully compensate for the £66 per month support provided last winter, which concluded in April.
