Households unlikely to benefit from fixed tariffs

At present, while four fixed tariffs are currently priced below the £2,074 per year typical consumer default tariff cap currently in place, the energy market researcher’s domestic tariff report shows those 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. 

James Mabey, analyst at Cornwall Insight, said: “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.”