As the new year approaches, households are bracing for an upcoming rise in energy bills set by Ofgem’s price cap. The increase, albeit small at 0.2%, will push the average annual cost to £1,758 per customer. However, potential relief may come from Chancellor Rachel Reeves’ budget measures, promising around £150 in annual savings.

To combat the impending hike, an increasing number of households are turning to fixed energy deals, with approximately 21 million already signed up. While fixed deals do not guarantee a stagnant overall bill, they lock in the unit rate for a specific period. By making the switch, customers on standard variable tariffs could save an average of £230 annually.

Switching suppliers, even with a smart meter, is a straightforward process that could lead to significant savings. Various fixed deals, including Ecotricity’s EcoFixed and Outfox Energy’s offerings, are currently priced below Ofgem’s price cap. Customers can explore options like E.ON Next, So Energy, and EDF Energy for competitively priced fixed tariffs with varying contract lengths and exit fees.

Energy Secretary Ed Miliband’s call for suppliers to pass on the promised savings further incentivizes customers to consider fixed-rate plans. Locking in a deal now could mean enjoying lower prices during the peak energy consumption months at the beginning of the year.

Energy expert Suzanne Edwards from Uswitch.com recommends seizing the current market opportunity, citing falling wholesale prices that make fixed energy deals more attractive. Households are encouraged to compare energy deals to potentially secure significant savings and avoid overpaying on standard tariffs.

By proactively exploring fixed-rate options, consumers can navigate the impending energy price hike and potentially reduce their annual energy costs.