To cap or not to cap?

The recent EDF announcement that it will raise its prices by 17% for electricity and 22% for gas, coupled with escalating living costs, has left many consumers increasingly feeling the squeeze; however, there are ways in which consumers can alleviate the strain, especially when it comes to saving money on energy, says Confused.com.

The wholesale price of energy has almost doubled in the last year, but it is important not to get despondent, because by switching to the best deal in the marketplace, the average consumer - who has never before switched energy providers - can make a saving of £248.

Capped rates - or fixed price deals - are a great option for consumers who are keen to protect themselves from future price fluctuations. The current pick of these is Scottish Power's Fixed Price Energy, as prices are guaranteed not to rise until August 31 2009. Although this is nearly 20% more costly than Click 5 from British Gas - the best non-capped deal - it could turn into a bargain in the not-so-distant future, if prices continue to rise.

Gareth Kloet, energy product manager at Confused.com, says: "Although the economic forecast is gloomy, it is always possible to make savings on energy, and those who regularly shop around will find that they stay on top of the game by regularly making savings. With approximately 14,000 tariffs available, searching for a better energy deal can be a minefield - a minefield which can be easily navigated by using comparison sites. In fact, more than 20% of customers who switched energy supplier through Confused.com between January and June 2008 saved up to £284.62.

"However, it is important to make sure that your chosen price comparison site has the most comprehensive energy panel possible, as some players have yet to sign-up key suppliers and some do not even have the largest energy providers on their panels."