If you’ve not already turned the heating on this year, you’ve probably begun to think about it and how much it will cost.
For those who haven’t considered it yet, a new market-leading energy tariff has just been launched by Economy Energy.
The typical household will pay £844.10 for the one-year fixed dual-fuel tariff, which is £309 cheaper than the average standard variable tariff from a Big Six provider. That’s according to the comparison website MoneySuperMarket – the only place you can get your hands on the deal.
Rising costs: Energy bills have risen steadily this year but a fixed-rate tariff could cut costs
The comparison website says it’s the cheapest average tariff available to any of the leading comparison websites.
Energy bills have risen across the board this year with all of the Big Six energy providers increasing prices – with British Gas the last to hike prices, by 12.5 per cent on 15 September.
Providers have blamed these hikes on rising wholesale prices and an increase to the cost of Government schemes such as the smart meter roll-out.
The price has risen for customers with a standard variable tariff, as the price they pay for energy is not fixed and therefore can rise or fall at any time.
These tariffs are typically the most expensive available and have been under fire repeatedly in the past year.
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Last year, the Competition and Markets Authority published the results of an investigation into the energy market that found those on these tariffs were collectively overpaying by around £1.4 billion every year.
But by choosing a fixed-rate tariff, households can save a significant amount as the price paid per unit of energy remains the same for the length of the contract.
These tariffs are usually cheaper than an standard tariff and MoneySuperMarket claims the latest deal from Economy Energy could save households an average of £309 per year compared to the average standard tariff from a Big Six provider.
Fight back with our Energy Switch Club
An increasingly popular way to get cheaper bills is to sign up for a collective switch, where suppliers fight for your business. You can register for the next Energy Switch Club from This is Money now.
As well as joining our no-obligation collective energy switch, where we will use people power to demand a better deal direct from the suppliers themselves, registering for free can also enter you into our prize draw to win £10,000, enough money to cover your bills for 10 years.
Anyone who registers for free for the Energy Switch Club between September 19 and October 16 is automatically entered into the prize draw. This only requires your email address and a few basic details and there is no obligation to switch if you do sign up.
For full details on how to register, see our article on how to slash your gas and electricity bills AND get the chance to win 10 years of free energy.
What does the Economy Energy tariff offer?
Economy Energy was set up five years ago in Coventry and earlier this year came third in the Citizens Advice online tool for customer service which compares all the major energy providers.
An average household paying by direct debit, using and 12,500kwh gas and 3,100kwh electricity each year, will pay £844.10 for 12 months if they signed up for the market-beating tariff.
The price paid per unit of energy will then remain the same for the full 12 months of the tariff.
Sky-high bills: Energy customers with a standard tariff can slash costs by switching to a fix
Switching to a different energy tariff could save you a significant amount of money over the course of a year, particularly if you have never moved providers before or are stuck on your provider’s standard tariff.
Once the tariff ends, you will likely be moved onto a more expensive rate so be sure to set a reminder so that you have time to shop around for the cheapest deals and avoid a bill hike.
Watch out – if you want to switch away before the end of the fixed period you will have to handover £25 in exit fees per fuel.
According to figures from MoneySupermarket, the estimated annual bill is the cheapest deal available through any leading comparison website.
Stephen Murray, energy expert at MoneySuperMarket, said: ‘Switching energy suppliers has never been easier and this is a great opportunity for customers to save substantially on their bills.
‘Switching to a fixed-rate tariff, such as this one offered by Economy Energy, gives households languishing on standard variable tariffs the chance to make savings of over £300 today.’
How does it compare?
The new tariff from Economy Energy and MoneySuperMarket is the cheapest from a comparison website when looking at average prices, as you can see from the table below.
However, to find out exactly how much you could save by switching, it’s always worth doing your own comparison based on your personal usage and your postcode.
Use out postcode energy finder tool right, or here.
|Provider and tariff||Tariff type||Avg. medium user (gross)||Exit penalties
|Economy Energy: Online Saver (MSM exclusive)||Fixed||£844||£25/fuel|
|Toto: 100% Renewable Saver||Fixed||£863||£25/fuel|
|First Utility: Smart First October 2018 v1||Fixed||£888||£30/fuel|
|Toto: TOTO Discount Variable Saver||Variable||£889||£10/fuel|
|Economy Energy: Direct Saver (Fixed)||Fixed||£897||£25/fuel|
|Octopus Energy: Octopus 12M Fixed||Fixed||£912||£0|
|iSupplyEnergy: iFix 12-Month Oct18 v4||Fixed||£919||£30/fuel|
|Eon: E.ON Go Online 1 Year v1 Online||Fixed||£920||£30/fuel|
|Green Network Energy: GNE Family Green 18 Month Fixed v6||Fixed||£929||£30/fuel|
|Places for People: Together – September 2018 – fixed 61 paperless billing||Fixed||£930||£30/fuel|
|Source: MoneySuperMarket, correct as of September 22 2017|
Courtesy: Daily Mail Online