Energy customers could save up to £250 a year by switching to a fixed-rate tariff, the regulator Ofgem has said.
That is despite the fact that four energy companies have cut their standard rates for gas in the last two weeks.
In the latest move Npower cut its variable gas tariff in the UK by an average of 5.1% from 16 February.
It will mean the average customer on a standard tariff will save around £35 a year.
But even so, Ofgem said most people would be better off on a fixed-rate deal.
"While recent price cuts are a step in the right direction, many customers could be better off to the tune of up to £250 by moving from a variable rate to a fixed rate deal," said Dermot Nolan, Ofgem's chief executive.
One price comparison site put the potential savings even higher.
MoneySuperMarket said customers could save up to £266 a year by moving to the cheapest fixed-rate deal.
| Supplier | Change | Date of change |
|---|---|---|
|
E.On |
Gas: down 3.5% |
13 January |
|
British Gas |
Gas: down 5% |
27 February |
|
Scottish Power |
Gas: down 4.8% |
20 February |
|
Npower |
Gas: down 5.1% |
16 February |
NPower's is the largest cut announced by a supplier so far, following a significant fall in wholesale gas prices since the Autumn.
British Gas, E.On and Scottish Power have all announced price cuts within the last couple of weeks.
However, the suppliers have been criticised by consumer groups for not cutting prices more.
Wholesale prices have fallen by as much as 20% since November 2014.
But the suppliers argue that the wholesale price only makes up around half an ordinary gas bill.
"If there are further falls in wholesale prices, we will keep these under review to see if we can cut further," said Npower chief executive Paul Massara.
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