The energy price cap has risen from £1,641 to £1,862 per year for the average household today, equating to an extra £18.40 a month for those that haven’t fixed their tariff.

However, the latest prediction from the independent energy analyst Cornwall Insight puts the price cap at a slightly lower £1,849 from October.

This forecast drop is down to easing tensions in the Middle East, which are helping to stabilise wholesale energy markets.

However, Cornwall Insight says that prices will remain high as questions remain around peace talks, the reopening of the Strait of Hormuz and repair timelines to infrastructure.

The good news is that if you're on a variable tariff and don’t want to pay elevated bills under the energy price cap, you can avoid them by fixing. 

You can do this for 12 months, although lengthier fixes are available if you prefer more certainty over your bills.

In recent weeks, fixed deals have been available that sit below both the confirmed cap from 1 July and the latest prediction for October. The cheapest tariffs are offered by smaller energy suppliers, but it’s possible to find deals from recognisable names too.

Which suppliers offer the cheapest fixed tariffs?

The cheapest fixed tariffs are usually offered by smaller energy suppliers. In particular Outfox Energy and Fuse Energy regularly top the table of the best energy deals, which is released by the comparison website Uswitch each week.

At the start of this week, Outfox Energy was offering the cheapest fix, coming to £1,577 for the typical household that pays by direct debit on both a 12-month and two-year fix, with exit fees of £75 and £100 per fuel respectively.

The cheapest fix from a well-known name was from Eon Next. 

Its deal sat at £1,705 for the average household on both a 12-month and two-year fix, with exit fees of £50 and £100 per fuel respectively.

When comparing tariffs, it’s important to look at exit fees, which is what you’d need to pay to shift to a better deal during the length of your contract.

Look beyond the quoted annual bill

The quoted annual price under the price cap, or a fixed tariff, is only an estimate of what you’ll pay based on the average household. The energy regulator Ofgem classes this as a three-bedroom house with two to three people living there.

Importantly, your total bill isn’t limited to this annual rate.

The cap or fixed deal sets the maximum that your supplier can charge for each unit of energy, so if you use more than the average household, you’ll pay more.

It’s worth noting that the energy regulator Ofgem is updating its typical energy usage figures from 1 July too.

These will now reflect the fact that households are using less energy, so the annual costs listed under the price cap and fixed deals will look lower.

For example, the price cap from July is £1,862 under the current figures and £1,663 under the new ones.

The forecast for October from Cornwall Insight puts the cap at £1,654 under the new values, representing little change from July.

All this means that you shouldn’t be fooled – the cost of energy isn’t decreasing, rather it's still going up.