Energy customers are being urged to think before switching energy deals - or they could risk missing out on savings worth up to £200.
For the past year, energy prices have been capped by the government in a bid to stop costs from getting too high. Under the Energy Price Guarantee (EPG), prices are currently capped in line with an average yearly bill of £2,500.
Despite this, the overall wholesale price of gas has dropped significantly which has shifted attitudes in the market. Both OVO Energy and SSE have been offering customers fixed deals since March - currently, these deals' costs are lower than the EPG, the Mirror reports.
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Both suppliers' fixed-rate deals offer a tariff of £2,275 a year depending on usage. But, Future Energy Associates have warned people against switching to these fixed tariff deals following predictions that prices could drop even more in July.
The firm says customers who are fixed with OVO from March could lose out on roughly £212 in savings for that year. Meanwhile, those who went with SSE could lose out close to £197 compared to sticking with the EPG and moving onto a variable tariff based on Ofgem's price cap from July 1.
They said: "After record-breaking power prices of last winter we are now seeing forward electricity prices come down, meaning suppliers are now paying less for power than accounted for by Ofgem's price cap. While costs continue to come down, suppliers will look to exploit consumer desires to move onto lower rate tariffs by trying to fix customers at close to current rates.
"Our analysis of costs shows that recent fixed tariffs are likely to make suppliers around 20% profit, whilst fixing customers at unit rates above the forecasted Ofgem price cap.”
An OVO spokesperson said Future Energy Associates misrepresented the value of its fixed tariff. They said: "We believe that the calculations materially underestimate forecast Supplier Costs and the future level of the Price Cap, and therefore significantly misrepresent the value offered by our Fixed Tariff.
“We are proud to be the only supplier that is giving its customer the option to fix their energy costs for the next 12 months, providing peace of mind and protection against the risk of future Price Cap increases. From speaking to our customers, we know that many want the security of a long-term fix and this is what this provides.”
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