Utility provider launches new fixed tariff £154 lower than current price cap
Several energy providers are offering fixed tariffs priced lower than Ofgem's new cap.
Utility Warehouse (UW) has launched a new fixed energy tariff priced £154 lower than the current price cap.
Energy regulator Ofgem raised the price cap on October 1, seeing a typical duel-fuel household’s average energy bill rise to £1,717 a year, or by 10 percent.
By signing up for UW’s three-service Fixed Saver 28 tariff, the provider says these typical duel-fuel households can “beat” the price rise and lock in their annual energy bills at £1,563 until October 2025.
The new tariff undercuts the cap by nine percent and is available to customers who take energy and switch at least two of their existing services - from broadband or mobile - to UW.
For customers who want energy plus just one other UW service from mobile or broadband, UW’s two-service Fixed 28 tariff offers a price of £1,623 for up to 12 months, which works out almost £100 below the price cap.
The new fixed tariffs are available to both new and existing customers.
For customers struggling with their bills, UW is also offering flexible payment options, energy efficiency advice and access to targeted financial support through its hardship fund, in partnership with Citizens Advice Plymouth. In the last financial year, the provider said it deployed more than £555,000.
Several energy providers are offering fixed tariffs priced lower than Ofgem’s new cap.
OVO Energy is currently offering a one-year fixed loyalty tariff priced 9.9 percent lower than the cap for existing customers. Meanwhile, Outfox the Market is offering a 12-month fix priced 9.5 percent lower, according to Money Saving Expert.
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In a recent appearance on ITV’s This Morning show, Money Saving Expert founder Martin Lewis urged viewers: “I would urge anybody out there at the moment who is sitting on the price cap to get yourself onto a whole of market comparison site, one that by default, shows you all the tariffs.
“Find what your cheapest fixes are, and look at how that compares to what you’re paying right now.”
He continued: “It’s worth noting, the price cap moves every three months. Most of you are on the price cap.
“It’s not expected to change much in January, and it’s expected to come down a tiny bit in April and July, but over the next year, you’re not going to pay - if current predictions are correct - much less than you are right now on the price cap, and you can fix at nine or 10 percent less.”
