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 - even after the cap comes into effect.
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.
- Reduce your bills: Compare the best tariffs in your area
Cheapest energy deal right now
Cheapest Big Six tariff
Cheapest challenger and green tariff
*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.
