A major energy supplier has announced a new fixed deal that is cheaper than the price cap from July.
Utility Warehouse is offering new and existing customers the opportunity to fix their energy bills at a cheaper rate to those on the standard variable tariff (SVT).
UW's "Fixed Saver 1" tariff will allow customers to fix their energy prices at an average price of £1,974.
This means for the average household, it will be £100 cheaper than choosing to stay with the SVT which mirrors Ofgem's price cap.
UW's "Fixed Saver 1" tariff will allow customers to fix their energy prices at an average price of £1,974
PA
This will cap the typical gas and electricity bills at £2,074 per year from July 1.
Although UW's deal will save households money on energy, there is also a major catch.
Customers hoping to take advantage of the offer are required to sign up for at least two other services offered by UW, such as mobile, broadband or insurance.
This can come at a price for many households, thus making slashing the overall savings from the energy tariff.
Package deals can often be more costly, according to the UK's biggest price comparison websites.
"The power of bundling services is something that utility companies have built on for years," Sarah Coles, head of personal finance at Hargreaves Lansdown told The Sun.
"If they package up a series of products together in one bundle, you’re less like to switch any of them – even after prices have risen.
"If all the parts of the package offer good value for you, and you would be buying them separately anyway, then this could work out as a brilliant deal.
Customers hoping to take advantage of the offer are required to sign up for at least two other services offered by UW
PA
"However, you need to be careful not to saddle yourself with something you don't want – or paying more overall because you’re chasing a bargain for one aspect of the package."
Ashton Berkhauer, an energy expert at Moneysupermarket, added: “We're watching the energy market particularly closely at the moment and working hard to bring our customers the best options for them once the market opens back up.
"Your existing provider may offer you a fixed tariff before the switching market reopens more widely.
"If you’re offered a fixed tariff, take a moment to consider if it’s right for you."
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2023-06-16 20:48:56Z
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