Check your energy bills now as cheaper deals are vanishing

The number of fixed energy deals offering a saving against the price cap has fallen into single figures as wholesale fuel prices rise amid continued disruption in the Middle East.

MoneySuperMarket Energy says the cheapest fixed deals are now only 2% below the October Energy Price Cap, compared with 14% in July.

The cheapest tariffs beat the October cap by just £31 on average, according to the latest figures.

The warning comes less than two weeks before the price cap rises by 3.9% on October 1, adding around £66 to a typical annual household bill and taking it to £1,729.

At the same time, wholesale oil prices have risen sharply, with crude oil at around $98 a barrel on September 21, after reaching $103 at the end of last week.

MoneySuperMarket says oil prices are now around 70% higher than at the start of the year.

Just four deals beat the October cap

Households looking to protect themselves from future price rises are being urged to compare fixed tariffs while cheaper deals remain available.

MoneySuperMarket says there are currently just four fixed deals beating the October price cap, while some industry forecasts suggest the January cap could rise significantly further.

The exact January figure is not yet known and will depend on wholesale energy costs and Ofgem’s eventual calculation.

MoneySuperMarket Energy expert Laura Hinton said: “The ongoing disruption in the Middle East continues to put pressure on wholesale fuel prices.

“As suppliers buy energy in advance, any easing in wholesale costs is unlikely to be reflected in bills immediately. With another Price Cap increase forecast in January, we recommend looking into fixed-rate tariffs. Locking in a fixed rate means you’re shielded from future price rises and gives you a clearer idea of what your energy costs will be for peace of mind and to make budgeting easier.

“We’ve already seen fixed tariffs become more expensive and the number of deals below the Price Cap shrink. The most competitive fixed deals can be withdrawn or repriced at short notice, so acting now could help households secure greater certainty over their bills this winter.”

“Why are bills UP £300 when they were meant to be DOWN £300?” Martin puts your first question to Energy Secretary @Miatsf

For more inc on standing charges, green policy, regional pricing, and Jan’s predicted 24% price hike. Watch the full energy bills special on… pic.twitter.com/0tVWHCrprj

— Martin Lewis (@MartinSLewis) September 17, 2026

Energy bills already higher than last year

The latest figures show energy costs remain 9.7% higher than a year ago and 58% higher than five years ago, based on Ofgem’s updated typical consumption values.

Households are therefore facing another increase when the October cap takes effect.

However, there will also be a temporary reduction in VAT on domestic electricity.

From October 1, VAT on domestic electricity is due to fall from 5% to 0% until March 31, 2027.

MoneySuperMarket estimates this could save a typical household around £45 a year.

The VAT reduction will also apply to customers who have already fixed their tariff.

This means households do not necessarily lose the benefit of the VAT cut by taking a fixed deal before October.

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How much could switching save?

MoneySuperMarket says households could save up to £173 a year by switching energy tariffs, based on the median saving among customers who switched through the service in June 2026, excluding Northern Ireland, the Channel Islands and Isle of Man.

The company also says its SuperSaveClub can provide a £10 reward when customers switch to an eligible deal.

However, the potential saving will vary between households depending on their current tariff, energy use and the deal available to them.

A fixed tariff also does not mean a household will pay exactly the same amount every year. The unit rates and standing charges are fixed, but the total bill still depends on how much energy is used.

With the number of tariffs beating the October cap already shrinking, households considering a fix will need to compare the full cost of each deal, including unit rates, standing charges, exit fees and the length of the contract.