This month’s top five cheapest energy deals could all save you more than £300 over a year if you’re on a pricey deal with a big energy firm. Plus, the price of the cheapest deal has fallen over the past three months; so is now the time to switch?
Small energy firms have been behind the cheapest gas and electricity deals for the last six months and July is no different. Newcomer Green Network Energy’s tariff is the cheapest currently available around the country – and it’s £326 cheaper per year on average than Npower’s standard tariff.
If you’re on a standard tariff with any of the Big Six energy firms, you could save at least £183 per year, on average.
The price of the cheapest dual-fuel energy deal has dropped since May. Although the change is small (around £18, from our monthly snapshot), it’s worth keeping an eye on prices over the summer to find the best deal for you. In 2016, the cheapest deals were available in the spring, summer and early autumn.
Read on to see July’s cheapest deals to start saving money now – and find out about the spiralling numbers of new suppliers over the last decade.
Find the cheapest energy deal for you with our independent gas and electricity comparison website Which? Switch. Or you can phone Which? Switch on 0800 410 1149 or 01259 220235.
Save up to £326 on your energy bill
The cheapest gas and electricity deal available wherever you live in Great Britain costs £861 per year on average for a medium user. It’s from newcomer Green Network Energy. If you’re on Npower’s standard tariff (the priciest from one of the Big Six firms), you’d save £326 over a year by switching.
British Gas currently has the cheapest standard tariff of the Big Six firms (£1,044 per year). But you’d still save £183 by switching to this month’s cheapest deal.
Standard tariffs are often an energy company’s priciest deal. But they have no end date and there is no exit fee for switching away from them. Some fixed deals also come without exit fees – look out for these if you’re tempted to keep shopping for a cheaper energy deal, even after you’ve switched.
Five cheap energy deals for July
We’ve calculated the five cheapest energy deals, available throughout England, Scotland and Wales. If you live in Northern Ireland, check our dedicated Northern Ireland electricity and gas suppliers guide to see the best and worst firms, as rated by their customers.
Below, we show how much each deal would save you per year, compared with Npower’s or British Gas’ standard tariff. We’ve picked these, as they’re currently the priciest and cheapest standard tariffs from the Big Six energy firms.
- £861 Green Network Energy GNE Italian Touch 12 Month Fixed V7 – Paperless. Fixed tariff with £25 exit fee per fuel. £326 saving from Npower, £183 saving from British Gas.
- £866 Tonik Energy Positive Energy v8 – Paperless. Fixed tariff with no exit fee. £321 saving from Npower, £178 saving from British Gas.
- £867 Bristol Energy 1 Year Fix Issue 15 Paperless Billing – Paperless. Fixed tariff with no exit fee. £319 saving from Npower, £177 saving from British Gas.
- £867 Bulb Vari-Fair – Paperless. Variable tariff with no exit fee. £319 saving from Npower, £177 saving from British Gas.
- £869 Avro Energy Simple and Home – Paperless. Fixed tariff with no exit fee. £317 saving from Npower, £174 saving from British Gas.
Gas and electricity company numbers are growing
Many of the firms offering the cheapest gas and electricity deals each month are newcomers to the energy market, so you might not have heard of them.
There are now more than 50 GB gas and electricity firms to choose from – five times more choice than a decade ago. Between them, they offer more than 200 different tariffs.
Plus, there are potentially another 24 firms set to join them, if all companies granted or applying for a supply license from energy regulator Ofgem in the last six months start selling energy.
76 The number of potential new energy suppliers
Recent newcomers include Igloo Energy, which says it’s an energy company ‘built for your smartphone’ and ‘the connected home’ and plans make customers’ homes smarter and more efficient to run. Find out more about Igloo and other small energy firms and whether they’d be right for you.
Meanwhile, Npower is the first of the Big Six firms to launch a tariff claiming to be ‘cleaner energy’ this year. Npower’s Cleaner Energy Fix will match all your electricity usage and 15% of your gas usage with energy generated from renewable sources. It says that’s ‘subject to availability’, though.
It will cost around £1,077 for a medium user per year, on average. That’s £110 less than Npower’s standard tariff per year, but £211 more than Tonik’s 100% renewable electricity deal and £210 pricier than Bulb’s 100% renewable electricity and 10% green gas tariff (both listed in the top five cheapest deals above).
If there’s an energy price cap coming, should I switch?
A ‘safeguard tariff’ to stop vulnerable consumers overpaying for energy is being considered by energy regulator Ofgem, it announced earlier this week. Full details and timings haven’t been announced but Ofgem described it as ‘extending the current safeguard tariff in place for consumers on a prepayment meter’.
Alex Neill, Which? managing director of home products and services, said: ‘Millions of hard-pressed customers are overpaying for their energy and suffering due to a lack of competition in the energy market. More help for the most vulnerable customers and steps to make switching easier are welcome, but people will question whether these interventions are enough to deliver an energy market that finally works for all consumers.’
(How our prices are calculated: Prices are based on a dual-fuel tariff for an average user (using 3,100kWh of electricity and 12,500kWh of gas per year), paying by monthly direct debit, with paperless bills and averaged across all regions. Exact prices can vary according to region, usage and payment method. Prices are rounded to the nearest whole pound. The prices given in the table above are correct as of 2 July 2017.)