Energy price cap expected to rise by 9% in October

With prices set to rise, some billpayers might look at the options available to fix their energy tariff.

Cornwall Insight said that the average saving from the top 10 cheapest tariffs on the market in August was only £5 a year, compared with a default tariff set by the price cap.

That may change in the coming weeks, and Richard Neudegg, from price comparison website Uswitch, said there were options for those who wanted certainty.

“Just because it is a fix, it doesn’t mean it is a good price fix,” he said.

“The question for consumers is, if they want that level of certainty, how cheaply can they get it.”

Standing charges, a fixed daily fee covering the costs of connecting to a supply, currently stand at at 60p a day for electricity and 31p a day for gas, although they vary by region.

Ofgem is currently considering whether to change the standing charge billing system.

Energy bills are considerably lower than the peak after Russia’s invasion of Ukraine, when the government stepped in to limit bill rises, but are much higher than before the pandemic.