Energy bills saving of £259 could boost your finances – but only if you act fast | Personal Finance | Finance

Energy bills have been the nation’s unrelenting headache ever since global gas volatility started rattling the market back in early 2021. While things seemed to be looking up last summer – thanks to consecutive drops in Ofgem’s quarterly price cap due to an easing market – the relief was short-lived. Rates began creeping up again in the autumn, and now we’re feeling the sting once again. On April 1, Ofgem’s latest price cap hike pushed average energy bills up by £111 a year for a typical dual-fuel household on a standard tariff. That’s a blow for many, alongside a wave of other cost rises – from car costs to council tax – squeezing budgets this month.

Households on fixed-rate energy deals – where you lock in your unit prices for a set period – managed to dodge some of the recent increases. But only for now. New figures from Uswitch reveal that around 418,000 households will see their fixed tariffs come to an end this month. If they don’t take action, they’ll be automatically rolled onto a standard variable tariff, which is currently among the most expensive on the market.

With the cost of new fixed-rate deals expected to rise, there’s a narrow window for energy customers to lock in better rates and protect themselves from future hikes.

If you can fix at a rate below the current energy price cap (£1,849 per year for a typical duel-fuel household), it’s worth considering.

So, what should you do if your fixed deal is about to end? Take a few minutes to compare energy tariffs using websites, such as Compare The Market or Uswitch, and secure a better deal.

According to Uswitch, if all households coming off fixed rates this month switched to the cheapest available fixed tariff, they could collectively save £108million – or £259 each – compared to the current price cap.

And here’s a handy tip that many people may not be aware of: you can switch up to 49 days before your fixed tariff ends without paying any exit fees, as per Ofgem rules.

That gives you a valuable head start to snap up a good deal before prices potentially rise again. In short, don’t wait. A quick energy check-up now could save you a painful bill shock later.