![Pinterest](https://pinterest.com/pin/create/button/?url=https://uknews.evprotec.com/ofgem-issues-urgent-energy-bill-warning-as-millions-could-miss-out-on-price-drop/&media=https://uknews.evprotec.com/wp-content/uploads/2023/08/close-senior-woman-home-looking-835369638-1.jpg&description=SAY WATT Published : 14:47, 10 Aug 2023 Updated : 14:49, 10 Aug 2023 OFGEM has issued an urgent energy bill warning to millions who could lose out on money later this year. The regulator is warning households they might end up paying more by signing up to a fixed rate tariff. 1 Ofgem has issued an urgent warning over fixed rate tariffs Credit: Getty A number of fixed rate tariffs have started entering the market cheaper than the energy price cap and it might be tempting to sign up. One major advantage of these tariffs is that you can lock in a set rate per kilowatt hour for the length of your contract - usually 12 months. As the rate is set, you are protected from any price rises. However, if the price of energy falls, you don't benefit from the cut. The average dual-fuel tariff household on the price cap is currently paying £2,074 a year but experts at Cornwall Insights are predicting this to drop to £1,860 from October 1. So you might fix a deal less than £2,074 now, but end up paying more than the price cap from October. In a recent tweet , Ofgem warned households to "think" before they fix. It said: "Fixed-rate energy tariffs have seen a return to the market but check if they are right for you. "Prices are still unpredictable and signing up for a fixed rate now might mean you miss out if prices fall in the future." Emily Seymour, energy expert from consumer group Which?, said: "We wouldn't recommend fixing anything higher than the unit rates in your current deal or for longer than a year. "If you are offered a deal, then it's really important to check the tariff's exit fees in case you want to leave that deal early if the price cap comes down." Natalie Mathie, energy expert at Uswitch, meanwhile added: "The energy market remains volatile and predictions are frequently changing, so it's impossible to say whether you'll save over 12 months if you choose to fix now. "Don't let yourself be pressured into taking a fixed deal that you will struggle to pay." Cornwall I){kind=link}
OFGEM has issued an urgent energy bill warning to millions who could lose out on money later this year.
The regulator is warning households they might end up paying more by signing up to a fixed rate tariff.
A number of fixed rate tariffs have started entering the market cheaper than the energy price cap and it might be tempting to sign up.
One major advantage of these tariffs is that you can lock in a set rate per kilowatt hour for the length of your contract – usually 12 months.
As the rate is set, you are protected from any price rises. However, if the price of energy falls, you don’t benefit from the cut.