- Analysis by energy switching service energyhelpline.com has revealed that energy customers can access new fixed tariffs below £800 for the first time in two years
- The trend is driven by falling wholesale energy prices, with oil prices going into the negative for the first time in history last week
- The cheapest new energy tariffs have fallen by up to £41 a year since the start of the lockdown in the UK
- However, figures also show a 30% increase in electricity use as people stay at home
- As lockdowns globally start to ease, new, fixed tariff energy deals could start to rise if wholesale prices increase
Analysis by energy switching service energyhelpline.com has revealed that household energy customers can access new fixed deal energy tariffs under £800 a year for the first time in two years.
Low wholesale energy prices have resulted in a wider-market trend that has seen the launch of nine new fixed deal energy tariffs, from six suppliers, for under £800 a year based on average dual-fuel consumption.
Wholesale energy prices are falling, in part due to oil prices going into the negative for the first time in history last week. Currently, the cheapest fixed tariff on offer is priced at £764 a year – nearly £400 less than paid by the average UK household. The lowest priced energy tariffs have also fallen as much as £41 a year since UK lockdown measures came into effect in March.
It has been predicted that the stock market is due to trend upwards as global lockdowns are eased. This may influence wholesale rates to rise – resulting in a possible rise in the cost of future energy tariffs.
Today’s analysis comes following figures earlier this month that show that average daily electricity use at home has increased by 30% due to people staying in as part of social distancing. As a direct result, actual bills are predicted to rise by £18. [See Notes to editors]
Tom Lyon, Director of Energy for energyhelpline.com, says:
“Continuing falls in the cost of wholesale energy have allowed suppliers to launch a raft of cheap new fixed deals, the likes of which we’ve not seen since 2018. The price between the best deal on the market and the average UK household energy deal now stands at a staggering £398, meaning switching supplier could help consumers save significant amounts.”
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