Last week Ofgem announced a new energy price cap, which will push the UK’s most expensive energy bills down by £84 a year. However, if you’re one of the 11 million UK households whose gas and electricity costs come anywhere near the price cap, then you’re still going to be overpaying by hundreds of pounds.
The quickest and most effective way to save money on your energy bills is to compare plans from the best energy suppliers and switch to the best energy deal in your area. But before you run an energy comparison, take a look at these three cracking energy tariffs that are currently available – you could save around £200 compared to the price cap by switching to them.
Cheapest energy deal right now
Shell Energy | Energy September 2021 v4 | Fixed | Early exit fees: £30 per fuel | Average annual price*: £841/year
You could switch right now to Shell Energy and undercut the price cap by a couple of hundred pounds a year on your bills. This tariff includes 100% renewable electricity as standard, and it’s easy to manage your account with online billing. Plus, it’ll fix your energy price until September 30 next year. Just bear in mind that if you want to switch again before then, you’ll need to pay a £30 exit fee for each fuel. See how much you could save by switching to Shell Energy
Cheapest Big Six tariff
EON | Fix Online Exclusive v45 | Fixed | Early exit fees: £30 per fuel | Average annual price*: £858/year
If you’s prefer to switch to a Big Six provider, this deal from EON will save you around £180 compared to the price cap over the course of a year. You can also get 25% off Boiler Cover through CoverServe with this energy deal. It’s another fixed tariff, which means prices are locked-in for a year (so you’ll have to pay an exit fee of £30 per fuel if you leave before then). Bear in mind you can only switch to this deal if you agree to manage your bill online, pay by direct debit, and agree to have a smart meter installed. See how much you could save by switching to EON
Cheapest challenger and green tariff
Pure Planet | 100% Green 12m Fixed Jul20 v1 | Fixed | Early exit fees: £30 per fuel | Average annual price*: £842/year
The cheapest green tariff at the moment is from challenger supplier Pure Planet. It comes with 100% renewable electricity and 100% carbon-offset gas. You can manage the account online and pay by direct debit – be aware that payments be lower in summer and higher in winter to match your average usage. Again, there are early exit fees of £30 per fuel. See how much you could save by switching to Pure Planet
*Average bill value based on Ofgem figures for medium dual-fuel use.
How do I pick the right deal?
The best way to find the right energy deal for your home is to use our price comparison tool. We’ve partnered with MoneySupermarket to help us find the very best tariffs in your area. All you need to do is input your postcode and energy consumption – which you’ll find on a recent bill – and in less than two minutes we’ll show you all the latest tariffs, and give you an estimate for what each will cost you.
You could choose to switch to the cheapest energy deal, which is usually a variable tariff from a challenger supplier. Some of these include 100% renewable electricity as standard, and you can leave them at any time without paying an early exit fee.
However, variable tariffs can go up in price as well as down, so if you’d prefer not to keep a close eye on energy prices throughout the year, you’d be better off choosing the cheapest fixed deal available in your area, such as the tariff above from Pure Planet.
Because it’s fixed, the price of each unit of energy will be locked-in for a set term – usually a year – making it easy to budget for. Many fixed tariffs have early exit fees, though, so you could be charged around £60 if you decide to leave your tariff before the term ends.
If you don’t like the thought of switching to a lesser-known supplier, then take a look at the Big Six deals: they’re from established firms so you know they’re reliable. However, while the Big Six offer some competitive plans, they’re rarely the cheapest. It’s also a good idea to also check the supplier on Trustpilot before switching, as some of the challenger suppliers – such as Octopus or Bulb – have a better track record for customer service than the bigger firms.