Energy supplier slashes fixed rate tariff – now it’s £179 cheaper than price cap

Utility Warehouse, which caters to almost one million customers, is offering a fixed-rate tariff set at £1,895 for 12 months.

The deal does require other services to be bought from the supplier, however, their fixed rate offer is £179 cheaper than the price cap.

Since the Ofgem price cap was brought back, many suppliers have offered fixed deals which were previously unavailable.

Ofgem’s price cap has replaced the Government Energy Price Guarantee which set maximum consumer prices from October 2022 to June 2023 to £2,500.

Ofgem cut its energy price cap from £3,280 to £2,074 meaning the average household energy bill could fall by £426 a year from July 1.

To qualify for the Fixed Saver 3 tariff, customers are required to bundle their energy services with at least two other services from Utility Warehouse, such as mobile, broadband or insurance.

An 18-month broadband & line contract with the provider is £24 a month for its 35Mb deal or £31 a month for 63Mb.

Both have a £5.99 delivery fee and offer a 10 percent discount if someone owns their home and also takes its mobile phone service. If someone needs a new phone line installed, there is an extra £1/month charge.

Stuart Burnett, Co-Chief Executive Officer of Utility Warehouse, said: “We’ve lowered our fixed energy tariff to £179 below the price cap – this is the cheapest fixed tariff in the UK when customers bundle their services with us.”

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“With many consumers facing steep increases in the cost of living, our new fixed tariff can help households save money and give them peace of mind on their energy bills for the next 12 months.”

Is it worth switching to a fixed-rate energy tariff?

From July 2023, energy bills fell 17 percent so a fixed deal will only make sense if it means people will pay less than their supplier’s default tariff.

However, as Ofgem’s price cap is reviewed every three months, switching away from the default tariff for a short while is good if it remains high, but if it falls in October people could be left out of pocket.

The cap is expected to drop five percent in October before rising two percent in January, according to energy research company Cornwall Insight

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But there is no certainty at the moment about the future direction of energy prices.

The energy regulator Ofgem has urged customers to “think before you fix” as more deals come back to the market.

In a tweet, it said: “With the lower #PriceCap figure, fixed-rate energy tariffs might appear back on the market but check if they are right for you.

“Prices are still unpredictable & signing up for a fixed rate now might mean you miss out if prices fall.”

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