ENERGY firms have been launching flash sales, offering cheap fixed deals which are snapped up within hours.
Despite sky-high gas and electricity prices, some cheap tariffs have been spotted – but they’re disappearing fast.
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Fixed deals used to be cheaper than the energy price cap, but now suppliers are offering them at eyewatering rates due to rocketing wholesale prices.
So for the majority of households it’s cheaper to revert to a standard variable tariff which is price capped.
However, there have been some exceptions to the rule with firms offering cheaper fixes for a limited amount of time.
Remember, before signing up to any deal make sure you work out how much it will really cost you and read the terms and conditions carefully.
Octopus yesterday offered a “limited number” of tariffs below the incoming April price cap, costing £1,950 for a household with a medium energy consumption.
The price cap is £1,971 a year from next month and it’s expected to rise even further in October, with some experts saying it could hit £3,000.
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But there was a catch that meant it wouldn’t have been suitable for all customers.
It was a three-year fix, costing £300 to leave in the first year and dropping to £100 in the third.
Octopus said it was able to offer the deal as it bought the energy for those contracts when wholesale energy was cheaper.
Buying the energy for three years in advance allowed it to get a discount on the price.
However, it sold out within an hour of being mentioned on Twitter, showing the demand for cheaper energy deals.
Similarly, E.on launched a cheap deal earlier this week, which was pulled from the market after desperate customers swooped.
Martin Lewis tweeted about the “Next Online v11” deal, which included a one-year fixed-rate period, was only available to current customers.
The deal was priced around the same as the April price cap – around 50% more than current bills.
That meant it was worth signing up for because if prices rise again, you wouldn’t be affected as you’ve committed to a year at the same rate.
But the deal sold out within hours of the money guru’s tweet.
How to get a cheaper deal
We spoke to suppliers and energy experts who shared how to get the cheapest deals.
Remember, staying on the energy price cap will be the cheapest available deal for many households.
If you spot an offer, make sure you check the standing charge and price per unit, as well as any other terms and conditions before signing up.
It’s important to be aware of how long the fix is for, as you’ll be stuck paying that price even if the energy crisis ends and prices come back down.
You could also be charged a fee if you want to switch before the fixed term is up, so factor that in.
Know your budget
You have to be fast if you want to bag one of these cheap deals, so you need to know what you’re looking out for.
You should be checking the unit rate and the standard charge, as this shows what you’ll really be paying.
Look for rates that are below or near the new price cap which will come into affect from April.
These are the new rates that you should be checking against when looking at a deal.
Electricity:
- 28p per kWh
- Standing charge: 45p
Gas:
- 7p per kWh
- Standing charge: 27p
“Just because a deal is available it doesn’t mean you should go for it,” Will Owen, energy expert at Uswitch, said.
“Make sure you know how much you can spend and how much you are already spending on your energy bills and compare that with the deal available.
“The current price cap has meant that fixed tariffs are more expensive than usual, so it’s important to check and compare.”
Martin Lewis shared a handy video this week to help confused consumers work out when to fix.
He said: “I would not switch to a fixed deal unless it was less than 75% more than the current price cap, or if you want to base it on the April price cap, no more than 15% more than the April price cap.”
Ring your supplier
If you missed out on the latest Octopus deal, the company said the best way to find the latest offers is to ring up.
Even if you’re with a different supplier, it might be worth giving them a call to see if there’s anything they can offer you.
Some suppliers such as Shell Energy and Bulb told The Sun that they’re not offering fixed deals.
However, Shell Energy said it is keeping that policy under review.
So checking in regularly could help you bag a bargain tariff.
Check your online account
If you manage your gas and electricity bills online, logging into your account regularly could help you get a deal.
E.On customers were offered the cheap fix when they viewed their online energy accounts.
You should also keep an eye on your email inbox for any flash offers that pop up.
Use comparison sites
Comparison websites pulled most deals at the beginning of the energy crisis last year, when fixed deals soared way above the price cap.
That means they’re not as useful as they used to be when it comes to switching.
But Will said comparison sites can still help consumers keep up to date on the latest deals.
He said you should run regular comparisons online to see what deals are on offer.
Sign up to news alerts from comparison sites so you’ll know as soon as a new offer hits the market.
Try sites such as Uswitch, Compare the Market and Moneysupermarket to keep up to date.
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This post first appeared on thesun.co.uk
