Should You Fix Your Energy Tariff?

If you have not actively chosen a tariff recently, you are almost certainly on your supplier's standard variable tariff — where prices move up or down each time the Ofgem price cap changes. Fixing means locking your unit rates and standing charge for a set period, usually 12–24 months. Whether that is a good deal depends on where prices are heading and what the fix costs.

How the price cap actually works

The Ofgem price cap is reviewed every three months (January, April, July, October). Two things people commonly get wrong:

• It caps the unit rate and standing charge, not your total bill. There is no maximum on what you can pay — use more energy and you pay more.
• It only applies to standard variable tariffs. Fixed deals are not capped — which is exactly why they can be cheaper (or more expensive) than the cap.

Check Ofgem's website for the current cap rates — quoting a figure here would go stale, and the cap changes quarterly.

When fixing makes sense

A fix is worth considering when the deal's annual cost — based on your actual usage — is lower than what you expect to pay on the variable tariff over the same period. In practice:

• Fix for certainty. If your budget cannot absorb a price rise, paying a small premium for a locked rate can be rational — you are buying predictability, not necessarily the cheapest outcome.
• Fix when fixed deals are priced below the cap. When suppliers expect prices to fall, competitive fixes can undercut the variable rate. When they expect rises, fixes are priced above it.
• Stay variable when fixes carry a big premium or when prices look likely to fall — you keep the flexibility to switch later without exit fees.

What to check before fixing

• The unit rate and the standing charge. A fix with a lower unit rate but a higher standing charge can cost more overall, especially for low users.
• Exit fees. Fixed tariffs typically charge £25–£100 per fuel if you leave early. If there is any chance you will move house or want to switch again within the term, factor this in.
• Fix length. A 24-month fix protects you longer but locks you in longer — and exit fees usually apply for the whole term.
• Your actual usage. Get your annual kWh consumption from a bill or your online account. Quotes based on "typical" usage are misleading if you are not typical.
• Payment method. Direct debit tariffs are usually cheaper than prepayment or pay-on-receipt. If you have a prepayment meter, your options are more limited.

How switching works

• Your new supplier handles the whole switch — you do not need to contact your old one.
• By law you get a 14-day cooling-off period after agreeing a contract.
• The switch typically completes within five working days after cooling-off, with no interruption to your supply — the gas and electricity come through the same pipes and wires regardless.
• Take a meter reading on switch day (or rely on your smart meter) so the final bill is accurate.
• You never pay a fee simply for switching — only exit fees on the fixed contract you are leaving.

A note on comparison sites

If you compare deals, use a service accredited under the Ofgem Confidence Code — accredited sites must show the whole market fairly, not just deals that pay them commission. The list of accredited sites is on Ofgem's website.

If you are struggling to pay

Contact your supplier first — they are required to work with you on a payment plan. Citizens Advice and National Energy Action offer free help, and the MoneyHelper website covers grants and schemes for energy bills.

This guide is general information, not advice. Tariffs change frequently — always check current rates and your own usage before switching.