Best Cheap Energy Deals June 2021

Reading Time: 4 minutes

Best Cheap Energy Deals June 2021

If you’re on a fixed-term, fixed-rate energy tariff that ends in June, you need to act sharpish to find another competitive deal.

Our data shows that over 140 fixed tariffs come to an end during this month. If tariff-holders do nothing, they will likely be moved by their supplier onto a ‘default’ variable rate tariff and start paying more for their energy.

So if you’re not sure when your tariff ends, it’s well worth checking your latest bill or contacting your supplier to find out.

Compare Over 50 Energy Suppliers

Save up to £477* on your energy bills

Top 10 biggest price increases for tariffs expiring by 30 June 2021

Fixed or variable tariff?

Fixed tariffs are usually among the most competitive available. Compared to variable rate tariffs, they are usually cheaper, and they come with the guarantee that the price per unit of energy you use during the term – usually 12 months, sometimes 24 – will remain the same.

With a variable rate deal, as the name suggests, the rate can go up or down as the supplier dictates, so long as it remains within the price cap set by the energy regulator, Ofgem.

The price cap was introduced by Ofgem, at the behest of the government, precisely because variable rates were so expensive. With the cap currently standing at £1,138 a year for typical households, there are dozens of cheaper fixed tariffs from which to choose, with typical prices as low as £860 a year.

In fact, Ofgem specifically advises consumers on standard variable rate tariffs to switch and fix a lower price for their power.

That said, a number of competitive variable rate deals are currently available. But market-watchers have noted steep increases in wholesale energy prices – and these could feed through to domestic bills. Remember, where fixed tariff prices are locked in for the duration, variable rates can be hiked by the supplier at any time.

Top 10 cheapest dual fuel tariffs – correct as of 4 June 2021

Exit fees safe zone

The fixed-term nature of fixed tariffs means many of them include exit fees, which are charged if you decide to leave during the term. These are usually set at £30 per fuel, so you’d pay £60 to leave a dual fuel gas and electricity deal ahead of time.

But, under Ofgem rules, you can’t be charged exit fees within 42 days of your tariff coming to an end, so anyone with a fixed tariff ending in June is now comfortably within the grace period where they don’t need to worry about fees.

The actual switching process should take no more than 21 days under Ofgem’s energy supplier licensing regime, so prompt action should ensure you can move over to another fixed tariff before you slip onto an expensive default deal.

You can find out more about switching here.

Frequently Asked Questions (FAQs)

How long does switching take?

Can I switch if I am renting?

Can I switch energy if I owe my current supplier?

When is the best time to switch suppliers?

Compare Over 50 Energy Suppliers

Save up to £477* on your energy bills