Just SIX cheap fixed energy deals remain amid fears Middle East crisis could push bills to £2,150

CHEAP fixed energy deals are being axed and repriced by the day. Suppliers are scrambling to react to soaring wholesale gas prices. That leaves households with a dwindling window to lock in savings before winter bills soar. Comparison site Uswitch says only six fixed tariffs on the market now undercut the price cap due to kick in on October 1. Sign up for the Money newsletter Thank you! Experts warn that number could shrink further within days. Providers may pull deals or hike prices in response to the volatile market. It comes as fresh forecasts suggest millions of Brits could be hit with a bill rise of £427 in January. The warning comes from analysts at Bloomberg Economics. They track energy markets and use wholesale price data to predict where Ofgem‘s price cap is heading. Their latest analysis suggests the average household’s annual energy bill could rocket to about £2,150 from January. Most read in Money That would creep worryingly close to the £2,500 cap the government was forced to introduce back in 2022. That cap followed Russia‘s invasion of Ukraine. To understand why bills could rise again, it helps to know how the price cap works. Ofgem sets a limit on what suppliers can charge per unit of gas and electricity. That limit is based largely on the wholesale cost of energy on international markets. When wholesale prices climb, so does the cap. Those costs are eventually passed on to households through higher bills. Wholesale gas prices have already jumped by almost a third in the space of a month. They have hit their highest level since November 2022. That has been driven in large part by growing tensions in the Middle East. Those tensions have unsettled global energy markets and raised fears over supply disruption. Households are already feeling the pinch. Ofgem confirmed the price cap would rise 4% in October. That takes the typical dual-fuel bill from £1,663 to £1,723 a year. It follows a 13% hike back in July. But there is still a way to dodge the looming increase, at least for now. Households on standard tariffs have just two weeks left to lock in a fixed deal. After that, higher rates kick in on October 1. A 24-month fix from Sainsbury’s Energy costs £1,646 a year for a typical household. That is £77 below the new October cap. It is also £504 cheaper than the average January forecast of £2,165. Other cheap deals still available include an 18-month fix from Outfox Energy priced at £1,676 a year. There is also an 18-month fix from Fuse Energy at £1,683 a year. Uswitch is urging anyone on a standard tariff to compare prices immediately. Households need to switch before the window closes for good. Ben Gallizzi, energy expert at Uswitch.com, said: “It’s terrible timing, but energy costs are going up for millions of households on the exact day many reach for the heating.” He added: “If you’re on a standard tariff, you have only two weeks to avoid higher energy prices from October 1.” “There are currently fixed deals available that are cheaper than October’s price cap, so act now to save yourself money.” “With predictions for January also suggesting a staggering 25% increase, comparing energy deals to find a cheaper option should be a priority for those wanting to avoid the hikes.” “It’s important to run a quick comparison to see options tailored to your personal energy usage. The price cap is going up, but your bills don’t have to.” Comment now