Data analysed by Cornwall Insight has shown that households choosing to sign up to any of the fixed energy tariffs currently available would be unlikely to experience savings in their energy bills over the next year when compared to Cornwall Insight’s forecast price cap rates1.
As energy prices continue to fall, there has been a great deal of attention on the possible return of fixed tariffs for domestic consumers. Though many of the fixed deals introduced in June and July were exclusively offered to existing customers, a handful of open-market fixed deals were made available.
Four fixed tariffs are currently priced below the £2,074 per year typical consumer Default Tariff Cap, with Utility Warehouse’s Fixed Saver being the cheapest at £1,974 per year2. Data from Cornwall Insight’s Domestic Tariff Report has shown a typical consumer taking that fixed deal at the start of July would be paying roughly in line with cap rates over the duration of the one-year fixed term, based on the current level of the cap and our forecasts over that period.
Figure 1: Domestic fixed tariffs as of 15 July 2023
*Utility Warehouse’s UW Fixed Saver 1 tariff requires customers to take two or more additional services from the supplier.
Source: The Energy Shop, MoneySavingExpert and Cornwall Insight analysis.
James Mabey, Analyst at Cornwall Insight:
“The return of energy fixing has captured the attention of the country over the past few months, as many households seek to secure lower and more stable energy deals. Based on our current forecasts, customers are unlikely to lose out by taking a one-year fixed deal, however, it is doubtful these deals will result in significant savings, if any at all.
“While there are currently limited financial gains to be made from taking up domestic fixed tariffs, they offer a sense of security to consumers amidst the recent volatility observed in the energy market. The desire for stable prices among households may increase the number of people who sign-up for the fixed deals.”
Notes to Editors
- All pricing figures and cap forecasts are using Ofgem’s current Typical Domestic Consumption Values (TDCVs). For our latest price cap forecasts using the new TDCVs, effective from 1 October 2023, click HERE.
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About the Cornwall Insight Group
Cornwall Insight is the pre-eminent provider of research, analysis, consulting and training to businesses and stakeholders engaged in the Australian, Great British, and Irish energy markets.