Fixed Energy Deals Vanish as October Price Cap Rises

Fixed energy deals that beat the October price cap are rapidly disappearing, with only four tariffs currently offering savings. According to MoneySuperMarket, the cheapest fixed deals are now only 2% below the October cap, a steep decline from the 14% savings available in July. This trend follows a surge in wholesale fuel prices caused by disruption in the Middle East, which pushed crude oil to approximately $98 a barrel on September 21.

On October 1, the energy price cap will increase by 3.9%, raising the typical annual household bill by about £66 to a total of £1,729. To mitigate this increase, VAT on domestic electricity will drop from 5% to 0% from October 1 until March 31, 2027, a move that could save households roughly £45 annually.

Energy experts warn that further price cap increases are forecast for January. Households are urged to compare and lock in fixed-rate tariffs to shield themselves from future volatility, as switching could save some users up to £173 per year. Experts note that the most competitive deals may be withdrawn or repriced at short notice.