Should you switch to a fixed energy tariff?

Energy bills will increase again for millions of households in April 2025. Is now a good time to switch to a fixed energy tariff?

The Ofgem energy price cap will go up by 6.4% for the period of April to June. This is on top of a 1.2% increase in January to March, and a 10% increase that occurred on 1 October last year.

It means that the price of energy for a typical household on a dual-fuel standard variable tariff who pays by Direct Debit will increase from £1,738 to £1,849 come April – although the exact price you pay will depend on your usage.

The energy price cap affects homes that are sitting on a standard variable tariff – roughly 22 million households.

Considering the hike in energy bills coming into force in April, should you stay on the price cap or move to a fixed energy tariff? We outline what fixed deals are currently available.

How much does a fixed energy tariff cost?

While 11 million households have a fixed energy deal, about 22 million households are sitting on the energy price cap, according to data collected by Ofgem in February 2025.

The cap sets the maximum price that can be charged for each unit (kilowatt hour, or kWh) of energy and standing charges on a standard variable – or default – tariff. This limit stays in place for three months. The current price cap unit rates (1 January to 31 March) are:

The upcoming price cap unit rates (1 April to 30 June) will be:

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Please be aware that these Ofgem figures are national averages, with your actual unit rates depending on where in the UK you live. You can find out more about prices in your area on the energy regulator's website.

If you fix your energy, your unit rates will be locked in for a set period – usually a year. So, regardless of whether the price cap rises or falls, your unit rates and standing charges will remain the same. This is useful if you value the certainty of knowing exactly what you'll be paying for the year ahead, and could save you money against future price caps.

Energy consultancy Cornwall Insight, who are well-regarded for the accuracy of their forecasts, predict that the price cap will decrease by around 5% for the period of July to September.

However, the consultancy says their prediction is “extremely likely [to] change multiple times before the cap is set in three months” because of high levels of volatility in the market.

If you enter into a fixed rate energy tariff that is lower than the price cap hike coming in April, you will be protected from higher energy prices until July. However, if the price cap falls in the subsequent quarter you could end up paying more than you need.

This being said, if energy prices go up again in the last quarter of the year, you could also be protected from higher bills in the Autumn and Winter.

The energy price cap for 1 July to 31 September will be announced on 27 May, 2025.

Here are the top tariff options that are available direct to all new customers, and how they compare with the April price cap:

Deals that are cheaper than the April price cap

• Outfox the Market Fix'd Dual Feb25 v2.0 – This 12-month dual-fuel fix is available to new and existing customers and comes in at 10.7% less than the April cap. There are £50 dual-fuel exit fees if you choose to move before the deal finishes.
• Outfox the Market 18-Month Fix'd Dual Feb25 v2.0 – This tariff comes in 9.6% below the April cap and is available to new and existing customers. There is a £50 per fuel exit fee.
• Outfox the Market 2-year Fix'd Dual Feb25 v2.0 – This 2-year fixed rate tariff is 9.5% below the April price cap. It is open to new and existing customers and has a £75 per fuel exit fee.
• Eon Next Next Fixed 16m v9 – Coming in at 9.4% less than the price cap, this 16-month fixed rate tariff is available for new and existing customers. There is a £50 exit fee per fuel.

Source: Uswitch.com (correct as of 26 February, 2025)

While these deals are widely available, there may be loyalty deals that only existing customers can access, which offer superior rates to those listed above. Check with your supplier to see if you can benefit from such a rate.

Bear in mind that some deals come with conditions, such as requiring a smart meter, or asking you to sign up for other services.

If you have an electric vehicle, there are specific tariffs available that could be cheaper than the deals mentioned above.

Is it time to fix your energy tariff?

As the price cap is set to increase by 6.4% in April, now may be a good time to weigh up whether you should opt for a fixed rate energy tariff.

The question of whether to switch to a fixed rate tariff depends on your attitude to risk, and whether you believe energy bills will go up or down next year.

Locking into a fixed deal now that's 10% or 9% cheaper than the upcoming price cap seems like a good idea as you will be paying less than customers on price cap tariffs, but beware of exit charges if you need to leave early.

Will you continue to save money as the year progresses? Cornwall Insight says it expects the price cap to sit at £1,756 from July to September. If the forecast is correct, switching to a fixed energy tariff could bring you large savings until the summer. After that, it is more difficult to predict whether you could save money by fixing

The cheapest fixed rate tariff on the market at the moment costs £1,650 per year – around £100 less than Cornwall Insight’s early July price cap prediction.

Commenting on whether consumers should switch to a fixed cost tariff because of future rises in the price cap, George Frost, Country Manager at iChoosr, which runs a collective energy switching scheme to save money on energy bills, told MoneyWeek: “The market can change and not all forecasts will be realised."

Frost added: “This can work both ways: if the market falls dramatically then it may be worth accepting small early termination fees to switch away from an agreed tariff.

“However, on the other hand, all households on fixed tariffs will be protected against price rises for 12 months even if the market rises.”

For the latest price cap predictions, read 'Will energy prices fall in 2025?'.

Ofgem energy supplier switching rules change

If you do opt to switch, it’s worth being aware of relatively new rules brought in by the regulator Ofgem. Previously, suppliers had to complete a switch within 15 working days. Going over this limit would entitle the new customer to compensation.

As of 1 April 2024, suppliers have to complete customer switches within five working days (six if you enter into a contract after 5pm). Failure to do so will mean they have to pay affected customers compensation of £30.

If the supplier you’re moving to fails to switch you across in time, it’s worth complaining to them directly. Should they fail to pay you the compensation you’re due, you can escalate your complaint to the Energy Ombudsman, which can resolve the dispute.