how will the price cap affect my bills and should I fix my tariff?

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The energy price cap will rise by £693 to £1,971 from April, regulator Ofgem has confirmed, piling more pressure onto already struggling households.

Traditionally, the solution to rising gas and electricity tariffs was for customers to shop around for a better deal. However, doing so could now potentially leave households hundreds of pounds out of pocket.

Telegraph Money takes you through the state of the energy market, and whether you should consider switching.

Does it still pay to shop around?

The average fixed deal costs £2,492 over a year, according to Uswitch. This is more than the price cap for variable tariffs.

The 10 cheapest cost an average of £2,259 per year, while the cheapest deal, from SSE, costs £2,050. Some energy firms are offering fixed deals costing up to £4,200.

However, fixing now could protect consumers against any further price cap increases. The cap is supposed to be updated every six months, meaning it is for all intents and purposes a six-month deal that consumers can leave at any time, without paying fees.

However, Ofgem said it may decide to increase the cap sooner in the future, if market conditions require it.

The best way to find a new supplier is through a price comparison site. At present, households may also be able to find a cheaper deal by calling suppliers directly.

The Government said it expects global wholesale prices to come down from next year. This means those locking in for more than 12 months could be left even more out of pocket.

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