Households could see an annual saving of £242 on their energy bills if they switch to one of 62 fixed energy deals which are cheaper than the newly introduced price cap, according to comparison and switching service Uswitch.

The price cap, which comes into effect today, will increase by £96 to £1,138 for 11 million default tariff customers and by £87 to £1,156 for four million prepayment meter customers.

Sarah Broomfield, an Energy Expert at Uswitch, said: “Switching to a fixed tariff is the only way to escape market volatility and the unpredictability of the price cap.

“Many households are struggling with their finances as a result of the pandemic and moving from a default standard tariff can save consumers hundreds of pounds a year.”