Utility provider launches new fixed tariff that's £154 lower than the energy price cap

The provider says it's a way for customers to 'beat' the latest price rise and lock in their annual energy bills at £1,563 until October 2025

Utility Warehouse (UW) has introduced a new fixed energy tariff that is £154 cheaper than the current price cap. Following Ofgem's increase of the price cap on October 1, the average dual-fuel household saw their annual energy bill climb to £1,717, marking a 10% hike.

However, by opting for UW's three-service Fixed Saver 28 tariff, households can "beat" this surge and secure their yearly energy costs at £1,563 until October 2025. This tariff offers a 9% saving compared to the cap and is open to customers who bundle their energy with at least two other services—such as broadband or mobile—with UW.

For those wanting energy plus one additional service from UW, either mobile or broadband, the two-service Fixed 28 tariff is priced at £1,623 for up to 12 months, nearly £100 less than the price cap. These new fixed tariffs are accessible to both new and existing UW customers, reports the Express.

Additionally, UW provides flexible payment arrangements, energy-saving advice, and access to targeted financial aid via its hardship fund in collaboration with Citizens Advice Plymouth, having allocated over £555,000 in the last financial year. Multiple energy suppliers are now offering fixed tariffs that undercut Ofgem's revised cap.

OVO Energy offers existing customers a one-year fixed loyalty tariff at 9.9 percent below the current cap, while Outfox the Market has a 12-month fix for 9.5 percent less, advises Money Saving Expert. On ITV's This Morning, financial guru Martin Lewis stressed: "I would urge anybody out there at the moment who is sitting on the price cap to get yourself onto a whole of market comparison site, one that by default, shows you all the tariffs."

He added, "Find what your cheapest fixes are, and look at how that compares to what you're paying right now."

Noting the frequency of price cap changes, Lewis explained: "It's not expected to change much in January, and it's expected to come down a tiny bit in April and July, but over the next year, you're not going to pay - if current predictions are correct - much less than you are right now on the price cap, and you can fix at nine or 10 percent less."