Three major energy firms making BIG change for customers on fixed tariffs | The Sun

THOUSANDS of British Gas, EDF and Octopus Energy customers on fixed energy tariffs will pay less on their gas and electricity from October.

Selected customers on fixed tariffs will be switched to paying the cheaper rates offered under the Energy Price Guarantee next month.

The move will save some households thousands as the cost of living crisis continues to bite.

The threat of bills hitting £3,500 after the August price cap announcement pushed some customers into signing up to fixed energy tariffs with the expectation that they would pay less than the cap when it increased.

However, Prime Minister Liz Truss confirmed last week, that bills will rise to £2,500 for an average family, up from £1,971, for two years.

However, the new Energy Price Guarantee (EPG), which replaces the price cap, only limits the amount suppliers can charge those on standard duel fuel tariffs.

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And uncertainty remained over how the 6.1 million households on fixed energy tariffs would be equally compensated.

Government guidance recommends that energy suppliers discount the amount customer on expensive fixes pay for their gas and electricity to bring it more in line with the EPG rates.

However, such a move would have still left many on fixed energy tariffs paying more than those on the standard variable tariff and protected by the EPG.

However, British Gas, EDF and Octopus Energy have confirmed that customers on expensive tariffs won't be locked in to paying higher rates.

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At their own cost, the three suppliers will manually adjust the unit rates for gas and electricity for those on expensive fixed tariffs so that they are in line with the EPG.

British Gas has said that all its customers on fixes with a higher unit rate than the EPG will be automatically switched to pay the lower rates.

The same goes for EDF and Octopus Energy customers.

For example, if you are currently locked in to a fixed tariff with Octopus Energy that costs £3,500 a year for a typical household, your unit rates will be adjusted so that you'll instead pay an average of £2,500 a year.

EDF Energy has also decided to suspend its exit fees for those wishing to move off a fixed deal and onto the standard variable tariff.

A spokesperson for EDF said: "We want to make sure all our customers can benefit from the Government’s support and to provide reassurance that they are paying a fair price for their energy, so have decided to temporarily suspend exit fees for those switching from a fixed to our standard variable tariffs with immediate effect.

"Customers, including those on fixed tariffs, will see their prices automatically adjusted to reflect the Government’s price guarantee and do not need to do anything."

How will energy bill rates change in October:

The current rates for those on a duel fuel tariff (standard variable tariff) that pay their bills by direct debit are:

  • 7p per killowatt hour (p/kWh) for gas
  • 28p/kWh for electricity
  • A standing charge of 27p per day for gas
  • A standing charge of 45p per day for electricity

Under the new Energy Price Guarantee, those with the same payment method, will pay a unit rate of, on average:

  • 10.3p per killowatt hour (p/kWh) for gas
  • 34p/kWh for electricity
  • A standing charge of 27p per day for gas
  • A standing charge of 45p per day for electricity

Those on fixed tariffs that a charge more per unit rate than the figures above will automatically have their rates adjusted by British Gas, EDF or Octopus Energy.

Be aware that the amount you will pay will vary very slightly based on the company you're with, where you live and how you pay your bill.

What other energy bill help is coming?

From October the first, all households will start to receive a £400 energy bill discount.

The payment will be dished out by your energy supplier and will be split across six discounts between October and March next year.

Households will receive a £66 energy bill discount in October and November and a discount worth £67 in December, January, February and March.

In November, a £300 one-off "Pensioner Cost of Living Payment" will be paid out to eight million households.

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It will be given to those who already get the winter fuel payment – which is worth between £100 and £300 for those over state pension age.

Millions of households are in line to get the £150 Warm Home Discount between December and March 2023.

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