The average savings from the top ten cheapest fixed energy tariffs have dropped to just £5 per year.
According to Cornwall Insight’s August Fixed Domestic Tariff Report, these minimal savings represent a major drop from the savings of £60 to £80 that were common a few months ago.
The decrease is partly due to expected increases in the price cap in October and the removal of some low priced fixed tariffs from the market.
Earlier in 2024, savings were higher due to lower wholesale prices and a higher price cap, but fixed tariffs have struggled to offer significant savings since the energy crisis began.
Ofgem’s recent decision to keep the ban on acquisition tariffs, which prevents suppliers from offering lower rates to new customers, might also impact savings.
Some argue that keeping the ban could slow competition and the return to lower prices, while others believe it protects loyal customers from unfairly high costs.
