Expansion of the Warm Home Discount is predicted to raise energy prices in October, according to a prominent forecaster
The energy market is currently witnessing a surge in affordable fixed-term deals, providing a cost-effective alternative to default tariffs as the price cap for energy bills is set to increase in October.
According to the latest announcements, households will pay 26.29p/kWh for electricity and 6.19p/kWh for gas under the new price cap. This represents a rise of £17 from the current price cap of £1,720, with standing charges for electricity at 54p and 33p for gas.
Amidst this rise, key providers are offering fixed tariffs that undercut the expected October 2025 price cap of around £1,720 annual average bill by more than £200.
One standout deal is Fuse Energy's August 2025 Fixed tariff, offering up to 12.7% savings compared to the price cap for new and existing customers, with no exit fees mentioned for the 13-month version and a 15-month variant noted.
Outfox Energy is also offering competitive deals, with its Fix'd Dual Aug25 12M v4.0 providing a 12-month fix for dual-fuel customers and new/existing customers, presenting a fixed rate below the cap.
Octopus Energy, British Gas, EDF Energy, and Utility Warehouse are also among the providers offering deals that offer savings of over £200 annually compared to the upcoming price cap.
Experts recommend fixing energy rates now to lock in these savings ahead of the expected small rise in the price cap from October 2025 and to avoid volatility in energy prices during the winter months.
When choosing a tariff, consider factors such as the tariff length, exit fees, whether it covers gas, electricity, or both, and availability based on smart meter status or payment method.
The government is also taking urgent action to support families this winter. The expansion of the Warm Home Discount scheme for vulnerable households is expected to add £15 to a typical bill. Moreover, the government is taking steps to get the UK off the rollercoaster of fossil fuel prices and onto clean, homegrown power through its clean energy superpower mission.
In addition to these deals, nearly 3 million more low-income households will be eligible for a £150 discount this winter. For a comprehensive comparison of various energy deals from different suppliers, refer to the table provided.
[1]: Source: Uswitch.com [2]: Source: Cornwall Insight [3]: Source: Which? [4]: Source: MoneySavingExpert [5]: Source: Energy Helpline
