New fixed-rate below-cap energy deal ‘encouraging sign’ for consumers

The new tariff from So Energy costs £2,047 – £27 less than July’s price cap – for households with average consumption.

Josie Clarke
Tuesday 13 June 2023 09:13 EDT
A 12-month fixed-rate energy deal costing just below the forthcoming reduced July price cap has gone on the market in an ‘encouraging sign’ that competition is returning for consumers (Jacob King/PA)
A 12-month fixed-rate energy deal costing just below the forthcoming reduced July price cap has gone on the market in an ‘encouraging sign’ that competition is returning for consumers (Jacob King/PA) (PA Wire)

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A 12-month fixed-rate energy deal costing just below the forthcoming reduced July price cap has gone on the market in an “encouraging sign” that competition is returning for consumers.

Comparison site Uswitch announced the new tariff from So Energy costing £2,047 – £27 less than July’s price cap – for households with average consumption.

The deal is available to a limited number of new customers who are currently with any supplier via Uswitch.com, while existing So Energy customers can sign up to the same tariff directly with the company.

Households that have already signed up to receive alerts for exclusive deals will be first in line, before it is offered to all Uswitch.com customers.

Few providers are so far offering fixed deals, and those that are available are typically only for the supplier’s existing customers.

Uswitch.com energy spokeswoman Natalie Mathie said: “Most of the fixed energy deals currently available are for existing customers only, so the fact that we can offer this to new customers is an encouraging sign that competition is returning to the market.

“At £2,047 for the average household paying by direct debit, this is reasonably priced compared to the upcoming July price cap and could be worth considering.

“Signing up to a fixed deal means locking in price certainty for the duration of the fix, although your bill will still depend on how much energy you use.

“Those on standard variable tariffs will see energy costs change every three months with the price cap.

“As this is a limited deal, we don’t expect it will be available for long – but we’re hopeful this will encourage more suppliers to make fairly priced deals for more customers available soon.”

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