Should you switch energy supplier ahead of April's price cap?

Ofgem has announced the energy price cap will fall by 12.3% from 1 April thanks to a mild winter and falling wholesale gas prices. But with some recovery happening in the market, some energy providers have launched new tariffs that may work out cheaper than staying on a price capped one.

We'll break down the options you have when looking for the cheapest energy deals, or tariffs that work best for your energy use.

Stay on the price cap 

You could simply stay on the price cap, which is a limit on how much suppliers can charge for a unit of gas and electricity. The cap is £1,928 a year and will fall to £1,690 a year from 1 April. It changes every three months, but for those three months you won’t pay more than what it’s capped at. The exception to this is if you use more energy than the average household, you’ll pay more.

Variable tariffs

Some energy firms will charge less than the price cap, and variable tariffs don’t usually come with exit fees, so you can switch whenever you’d like. We’ve found four tariffs that may currently work out cheaper than the price cap:

The Octopus Tracker tariff 

This is available to existing customers, but you could always switch to its standard tariff then to this one. It’s electricity or gas only and rates will change daily depending on wholesale costs- but it’s thought that this tariff will be 4% cheaper than the price cap.

Fuse Energy

This electricity only tariff is price capped but won’t charge maximum rates. It’s standing charges make it on average 5% cheaper than the price cap.

It is electricity only, so you’d need to find your gas supplier elsewhere if you also get gas.

E.on Next Pledge 

This one moves with the price cap, staying 3% below it at all times. This is likely to save you around £50 a year.

Tomato Energy 

Tomato Energy's electricity-only standing charges are much lower than the price cap, making it on average 10% cheaper and even more so for lower users.

It is electricity only, so you’d need to find your gas supplier elsewhere if you also get gas.

 Fixed tariffs

If you choose to go onto a fixed tariff, the rates you’ll pay will stay the same for the duration of your contract- this is a good option if you’re looking for certainty in what you’re paying.

The main thing to weigh up when considering a fixed tariff is that if the Price Cap were to rise, your rates wouldn’t change. But, if the Cap falls when it’s reassessed every three months,  you could end up overpaying, and most fixed tariffs come with hefty exit fees.

British Gas announced a new 15 month fixed-rate gas and electricity deal that offers a 12% saving over most existing price-capped tariffs.

Time of use tariffs

If you have an electric vehicle (EV) and home charger, these tariffs may work well for you as they allow you to take advantage of cheaper off-peak rates when charging EVs. With some of these tariffs, you can also take advantage of the off-peak rate for your other electricity use too.

These tariffs will be pricey during peak times, so you should make sure to charge your EV during off-peak times. Many energy suppliers offer these tariffs.

If you are considering switching energy supplier ahead of the price cap, be sure to check out how Which? ranked each supplier’s customer service.

Need help with your energy bills?

If you can’t afford your energy bills, the first thing to do is speak to your supplier. A lot of energy companies have schemes offering financial support to customers who are most in need.