As you are probably aware, the energy Price Cap changes on Sunday, with average energy prices falling by around 7%. Good news, right? Not if you're one of the seven million households who are likely to face higher bills this winter compared to last thanks to an increase in standing charges and the end of the £400 Government Energy Bill Support Scheme.
It's worth recapping that the Price Cap doesn't limit your bills, only the price you pay per unit of electricity and gas. So, if you use more, you pay more. Using less energy is (almost) the only way to lower your energy bills.
Because there have been no cheap fixed deals available, most households are on a variable tariff that's pegged to the Price Cap. However you may have been offered fixed deals by your supplier, at just below or just above the Price Cap.
Why would you fix at a higher price?
The Price Cap changes every three months, so, if it increases, households on variable tariffs will pay more. Those wanting some certainty over their bills might therefore choose to fix. There's lots of complexity here though, so we'd recommend taking a look at the excellent guide available on MoneySavingExpert.
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