British Gas, E.on and EDF offer energy deals up to seven per cent cheaper than price cap

Recent competition between gas and electricity suppliers has spawned some good deals for consumers looking to save some money on one of every household's major fixed costs, with multiple energy deals now helping consumers to beat the energy price cap, which fell to £1,690 for a typical household in April.

In its latest newsletter, Money Saving Expert (MSE) outlined some of the best deals currently available to UK households looking to switch providers. Four fixed tariff deals currently on the market could help you lock in a price for the next 12 months that is up to seven per cent below the price cap.

MSE wrote: "There's a small spark of recovery in energy switching with a handful of new cheaper fixes, materially cheaper than the current Price Cap, which about 90 per cent of homes in Eng, Scot & Wales are still on."

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While it might currently look like energy prices are on their way back down, international fuel prices and other cost pressures have caused the July revision of the energy price cap, which was forecast to fall by three per cent, to be reduced by Cornwall Insight. With an uncertain world, it could be important to lock in a lower energy price.

MSE said: "The most recent Price Cap prediction by analysts Cornwall Insight was a month ago, and displayed in our graph it shows on average the Price Cap's predicted to drop 3 per cent over the next year. But Cornwall tell us things have sadly got more expensive since, so the Price Cap fall possibly won't be as big as predicted."

Some fixed tariffs are currently beating the price cap, and could well remain lower than the level the price cap is set to in July. British Gas, EDF, E.on and Outfox the Market all have deals that could lock you in at this price cap-beating energy tariff, but their price varies depending on location, so it is worth checking out each provider.

EDF - seven per cent below cap

The EDF Essentials one-year fix is open to anyone who can switch and covers both dual fuel and electric-only households. Though you will need a smart meter to qualify, you can pay at any time, either by direct debit or when you receive a bill.

At seven per cent below the price cap, this deal could help you lock-in a low energy price for the next year, beating the July price cap revision as well. Though, if you were to exit the deal, you would face a £25 fee.

MSE did have a note of caution in its weekly email, primarily that this is a good deal and is "unlikely to be around for long", so it could be worth looking into this offer sooner rather than later.

"At EDF, we’re passionate about all our customers saving cash on their energy bills. That's why we're pleased to introduce our best fixed-price tariff since 2021, now £110 lower than the current industry cap,” said Rich Hughes, Director of Retail at EDF.

British Gas - five per cent below cap

The British Gas one-year fix is also open to anyone, and covers all energy-usage households, including gas-only properties. Unlike EDF's deal, this won't require a smart meter to get a price cap-beating deal.

This tariff is paid monthly or quarterly either by direct debit or on receiving a bill. There is also a £50 early exit fee.

Outfox the Market - three per cent below cap

It's not just the big suppliers offering deals. Small energy firm Outfox the Market offers a one-year fix for new and existing customers too.

It doesn't require a smart meter but is available for dual fuel monthly direct debit customers only. Compared to the current cap, this deal offers a saving of around three per cent but again there is an exit fee - in this case, you'll pay £25 per fuel if you want to leave.

E.on - three to five per cent below cap

The E.on Next Pledge one-year tracker tariff is not actually a fixed tariff, but could still save you a lot of money on your energy bills.

The deal tracks at three per cent below whatever the price cap level is, meaning that the price per unit of your energy will always be cheaper than the market cap. Or, as MSE said: "Basically it's a discounted Price Cap tariff - a good option if you're unsure what to do."

E.on does have another tariff, the Next one-year fix, which would lock you in at five per cent below the current price cap, but details are not yet fully available. MSE said it was "5 per cent less on average than the Price Cap" but they are awaiting full details.