THOUSANDS of British Gas, EDF and Octopus Energy customers on fixed energy tariffs will benefit from cheaper bills in October.
Customers on fixed tariffs have been told they will receive a discount under the new Energy Price Guarantee.
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From October 1, bills are set rise to an average of £2,500 a year from £1,971.
Last week, Liz Truss confirmed the new Energy Price Guarantee, saving families from bills of £3,500 a year.
However, a loophole in the new rules meant that those on fixed tariffs could end up paying more than the Energy Price Guarantee cap due to the way the discount would be applied.
Now, British Gas, EDF and Octopus Energy have confirmed that none of their customers on fixed tariffs will be hit by this loophole.
Octopus Energy confirmed customers who are on fixed deals who are facing paying more than £2,500 this winter will automatically be moved onto the standard variable tariff.
A spokesperson said: “There are still people on fixed deals who will pay more than the £2,500 Energy Price Guarantee.
“It would simply be unfair if we left them to shoulder those high costs on their own, without any financial support.
“So we’ve decided to move all our customers on those tariffs onto our price guaranteed standard variable product at no extra cost for them.”
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EDF Energy has confirmed that it will suspend its exit fees for those wishing to move off a fixed deal and onto the standard variable tariff.
Government guidance recommends that energy suppliers discount the amount customer on expensive fixes pay for their gas and electricity to bring it more in line with the EPG rates.
However, such a move would have still left many on fixed energy tariffs paying more than those on the standard variable tariff and protected by the EPG.
At their own cost, the three suppliers will manually adjust the unit rates for gas and electricity for those on expensive fixed tariffs so that they are in line with the EPG.
British Gas has said that all its customers on fixes with a higher unit rate than the EPG will be automatically switched to pay the lower rates.
A spokesperson for the firm said: “We think it’s the right thing to do to move people who are on fixed tariffs that would benefit from the Governments Energy Price Guarantee automatically.
“As a responsible supplier we need to make things as simple as possible for our customers.”
Customers of EDF will also be protected.
A spokesperson for EDF said: “We want to make sure all our customers can benefit from the Government’s support and to provide reassurance that they are paying a fair price for their energy, so have decided to temporarily suspend exit fees for those switching from a fixed to our standard variable tariffs with immediate effect.
“Customers, including those on fixed tariffs, will see their prices automatically adjusted to reflect the Government’s price guarantee and do not need to do anything.”
We’ve contacted the other energy suppliers and asked how they’ll support their customer on fixed tariffs.
How will energy bill rates change in October
The current rates for those on a duel fuel tariff (standard variable tariff) that pay their bills by direct debit are:
- 7p per killowatt hour (p/kWh) for gas
- 28p/kWh for electricity
- A standing charge of 27p per day for gas
- A standing charge of 45p per day for electricity
Under the new Energy Price Guarantee, those with the same payment method, will pay a unit rate of, on average:
- 10.3p per killowatt hour (p/kWh) for gas
- 34p/kWh for electricity
- A standing charge of 28p per day for gas
- A standing charge of 46p per day for electricity
Those on fixed tariffs that a charge more per unit rate than the figures above will automatically have their rates adjusted by British Gas, EDF or Octopus Energy.
Be aware that the amount you will pay will vary very slightly based on the company you’re with, where you live and how you pay your bill.
What other energy bill help is coming?
From October the first, all households will start to receive a £400 energy bill discount.
The payment will be dished out by your energy supplier and will be split across six discounts between October and March next year.
Households will receive a £66 energy bill discount in October and November and a discount worth £67 in December, January, February and March.
In November, a £300 one-off “Pensioner Cost of Living Payment” will be paid out to eight million households.
It will be given to those who already get the winter fuel payment – which is worth between £100 and £300 for those over state pension age.
Millions of households are in line to get the £150 Warm Home Discount between December and March 2023.
