Three major energy companies make a BIG change for customers on fixed tariffs

THOUSANDS of British Gas, EDF and Octopus Energy customers on fixed energy tariffs will benefit from cheaper bills in October.

Customers with fixed tariffs have been informed that they will receive a discount under the new energy price guarantee.

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Energy companies have said that those benefiting from fixed tariffs will not pay more than the new priceCredit: Getty

From October 1, bills are expected to rise from an average of £2,500 a year to £1,971.

Liz Truss last week confirmed the new energy price guarantee, saving families bills of £3,500 a year.

However, a loophole in the new rules meant that those who benefited from fixed tariffs could end up paying more than the energy price guarantee cap because of the way the rebate would be applied.

Now British Gas, EDF and Octopus Energy have confirmed that none of their fixed-rate customers will be affected by the flaw.

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EDF Energy has confirmed that it will suspend its exit charges for those wishing to switch from a fixed package to the standard variable tariff.

Government guidelines recommend that energy suppliers reduce the amount customers pay for their expensive repairs for their gas and electricity to bring them more in line with EPG tariffs.

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

At their expense, the three suppliers will manually adjust gas and electricity unit rates for those with expensive fixed rates to conform to the EPG.

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

A spokesperson for the company said: “We believe this is the right thing to do to displace people who have fixed tariffs who would automatically benefit from the government energy price guarantee.

“As a responsible supplier, we have to make things as easy as possible for our customers.”

EDF and Octopus Energy customers will also be protected.

An EDF spokesperson said: “We want to ensure that all of our customers can benefit from government support and reassurance that they are paying a fair price for their energy, so we have decided to temporarily suspend exit charges for those who switch from a fixed to our standard variable tariffs with immediate effect.

“Customers, including those on flat rates, will have their prices automatically adjusted to reflect the government’s price guarantee and will have nothing to do.”

We contacted the other energy providers and asked them how they would support their customer on fixed tariffs.

Rebecca Dibb-Simkin, Octopus Energy’s Chief Product Officer, said: “There are still people on fixed deals who will pay more than the £2,500 energy price guarantee.

“It would simply be unfair to leave them to bear these high costs on their own, without any financial support.

“We have therefore decided to move all of our customers on these rates to our standard variable price guaranteed product at no additional cost to them.”

How will energy billing rates change in October?

The rates in effect for people benefiting from a dual fuel rate (standard variable rate) who pay their bills by direct debit are:

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

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

  • 10.3p per kilowatt-hour (p/kWh) for gas
  • 34p/kWh for electricity
  • A standing charge of 28p per day for gas
  • A permanent charge of 46p per day for electricity

Those with fixed tariffs who charge a higher unit rate than the figures above will automatically have their tariffs adjusted by British Gas, EDF or Octopus Energy.

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

What other energy bill help is coming?

From October 1, all households will start receiving a £400 reduction on their energy bill.

The payment will be distributed by your energy supplier and will be spread over six remittances between October and March next year.

Households will get a £66 rebate on their energy bill in October and November and a rebate worth £67 in December, January, February and March.

In November, a one-time ‘pensioner cost of living payment’ of £300 will be paid to eight million households.

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It will be given to those who are already receiving the winter fuel payment – ​​which is worth between £100 and £300 for those over retirement age.

Millions of households are in line to claim the £150 Hot Homes Discount between December and March 2023.

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