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A price tussle among energy suppliers has given households the opportunity to lock in savings by taking out a competitive fixed energy tariff.
If you haven’t fixed in a year or more and are on a standard variable tariff, the fix from Fuse Energy gives you the chance to save around £293 a year when compared with the current price cap.
Your average annual bill would sit around £1,427, significantly less than July’s price cap of £1,720.
This is based on a home using the average amount of energy, and if you use more you will pay more.
Last week, Fuse Energy launched a deal which comparison site Uswitch said was the cheapest since 2021, offering savings of £260 against the price cap.
Outfox Energy then countered by cutting its one-year fixed tariff, making it cheaper than Fuse Energy’s deal by £5 a year on average.
> Find out more and compare deals at Uswitch*
Save money by fixing: Energy suppliers are offering big savings
However, Fuse Energy has repriced and its tariff is the cheapest one on the market once again.
You’ll need to act fast if you want to sign up, because this price ends at midnight tonight – the special deal is available through Uswitch* and directly through Fuse Energy.
Uswitch says the savings currently on offer are some of the biggest it has seen in three months.
The energy market is volatile and movements in prices are uncertain. But suppliers British Gas and EDF Energy are currently predicting the cap will increase slightly in October – so locking in a fix now could help you save even more in the long run.
How does the deal stack up?
Fuse Energy is offering a 13-month fix for £1,427 a year on average with exit fees of £50 per fuel. However, the supplier will close the deal after 11:59pm on 18 August, so if you want to take advantage of it you’ll need to act quickly*.
Keep in mind that Fuse Energy is primarily app-based and paperless.
When comparing tariffs, you should check the unit rate – how much you’re charged per kWh – of the new fixed tariff against that of your existing deal. That’s because the annual bill quoted is based on the energy usage of the average household and isn’t the maximum you’ll pay – if you use more energy, you’ll pay more.
Over the last few months, fixed energy deals have consistently offered generous savings against the energy price cap.
Smaller suppliers have generally led with the biggest savings, with Outfox Energy regularly topping the table of the best energy deals.
The current top deal from Outfox Energy is a 12-month fix with an average annual bill of £1,455 and exit fees of £75 per fuel, offering savings of £265 against the price cap.
Neither Fuse Energy nor Outfox Energy are household names. Fuse Energy only launched in 2023, so it’s a new kid on the block, but tariffs from both of these suppliers are very competitive in terms of cost so they’re worth considering.
> Compare energy deals at Uswitch*
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