Did you know that electric showers can cost 26p for every five minutes, adding up to £1.82 a week if you take one shower a day? And if you prefer a 10-minute shower, that cost doubles to £3.64 a week. For a family of four, this means spending £14.56 on showers alone. However, thanks to new unit rates, this cost will decrease by £1.
But showers aren’t the only things that can put a dent in your wallet. Washing machines, tumble dryers, and dishwashers can also be expensive to run. A typical 90-minute cycle on a washing machine costs £1, and an hour of ironing adds an extra 45p. If you use a tumble dryer, a 45-minute cycle will cost you 60p, and a dishwasher can range from 84p to £1.72 depending on the cycle length.
Is it worth getting a fixed tariff deal?
In the past, households would shop around for fixed price deals to get the best rates. However, the energy crisis has changed the market dynamics, making Standard Variable Rates (SVRs) governed by price caps the only viable option. Fixed rates became so expensive that providers stopped offering them altogether, and even now, only Ovo and SSE are offering fixed deals, which are actually more expensive than the new price cap. Analysts predict that these deals could make households £200 a year worse off.
Other providers are expected to reintroduce fixed rates once the price cap comes into effect. However, experts believe that these deals are unlikely to offer any savings compared to the price cap. Supporters of fixed rate deals argue that they provide long-term security as they can’t change during the deal’s duration, unlike variable tariffs. This could protect households from market fluctuations in wholesale prices.
Despite this, analysts in the industry predict that the price cap will remain relatively stable in the near future, and prices are unlikely to spike as they did during the war in Ukraine. Martin Young, an energy analyst at Investec, expects fixed price deals to return, but he doesn’t anticipate a flood of discounted offers. Instead, he believes that customer service and innovative products will drive switching.
Dr Craig Lowrey from analyst Cornwall Insight adds that those looking for alternatives to avoid high cap prices through fixed tariffs should manage their expectations, as the availability of deals below the cap is uncertain. Even if you manage to secure a rate below the cap, there’s still a risk that the cap could decrease, leaving you locked into higher-than-market prices.
Read more: Nine (completely free) ways to save money on your energy bills
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