Should you switch to a fixed energy tariff?

Energy bills have ballooned this ‘Awful April’ after the Ofgem energy price cap rose by 6.4%.

The average household paying by direct debit for gas and electricity will see their energy bills rise by £111, making them fork out an average of £1,849 per year. The exact amount of money you will pay will depend on your individual usage.

The rise is the third consecutive hike in the energy price cap by the industry regulator as energy prices have been creeping up since July 2024.

The energy price cap affects homes that are sitting on a standard variable tariff – roughly 22 million households, according to data published by Ofgem in February 2025..

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However, an increasing number of households are now opting to fix their energy tariffs. Roughly 11 million households are now on fixed rate energy tariffs according to Ofgem.

People who opt for a fixed rate energy tariff are locked into the rate they pay for a set period of time meaning that if the price cap increases, they are protected from paying higher rates.

But the opposite is also true, if the price cap falls, they could potentially be stuck paying more than necessary for their energy.

Considering the hike in energy bills that has come 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.

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 April to 30 June) are:

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 if the price cap increases after you fixed your rate.

Energy consultancy Cornwall Insight, who are well-regarded for the accuracy of their forecasts, predict that the price cap will fall by around 7% for the period of July to September 2025.

If their prediction turns out to be correct, annual energy bills for the average home paying by direct debit will fall by £137 from £1,849 in the three months from April to £1,712 in the quarter from June.

Cornwall Insight previously forecast the price cap to fall by 5%, but their new data paints an even more optimistic picture for billpayers as they now think bills will fall by an extra two percentage points.

However, the consultancy predicts that the October price cap will rise slightly before falling again in January 2026. They note that global energy markets remain volatile and therefore say that their forecasts are subject to change.

Dr Craig Lowrey, Principal Consultant at Cornwall Insight said: "The latest forecast drop will bring some relief to households and the government, offering a welcome sign that energy prices are moving in the right direction.”

However, he warns that “we mustn’t get ahead of ourselves” as volatility in the energy market and the UK’s high reliance on energy imports “ensure household bills remain highly vulnerable to sudden shocks”.

Taking into account predictions that the price cap will fall in July, it may be unwise to enter a fixed rate energy tariff that fixes you to a rate higher than the fall forecast. This is because, if the market’s predictions are correct and the price cap falls in July, you will be stuck paying more than you need to for your energy.

However, if predictions are wrong and the price cap increases, you will be paying less than if you didn’t fix your energy. Furthermore, as the typical fixed rate is entered into for a year, you may avoid price cap changes beyond those in the next quarter.

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 Outfox the Price Cap (Apr 25) 12M Fix'd Dual v2.0 – This 12-month fix comes in 13.2% below the April cap and is available to new and existing customers. It is only available for dual-fuel and there is a £50 per fuel exit fee.
• E.on Next Fixed 14m v2 – This 14-month dual-fuel fix is available to new and existing customers and comes in at 12.4% less than the April price cap. There are £50 dual-fuel exit fees if you choose to move before the deal finishes.
• EDF Energy Simply Fixed Jul26 v2 – This 16-month fixed rate tariff is 12.1% below the April price cap. It is open to new and existing customers and has a £25 per fuel exit fee.
• Ovo Energy Extended Fixed - Coming in at 11.8% less than the price cap, this 15-month fixed rate tariff is available for new and existing customers. There is a £75 exit fee per fuel.

Source: MoneySavingExpert.com (correct as of 1 April 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 has increased by 6.4%, now may be a good time to weigh up whether you should opt for a fixed rate energy tariff to protect yourself from further hikes.

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 that's cheaper than the April 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’s predictions say that the price cap will fall by 7% in July, but it’s not yet clear how much they expect the price cap to rise by in October.

If the forecast is correct and you fix your energy tariff at more than 7% below the April price cap, you will still be paying less for your energy in July than if you stayed on the price cap.

However, if the price cap falls more than is forecast, you could be stuck paying more than you need for your energy.

“Fixing your energy tariff can provide certainty over your energy costs for the duration of the contract, shielding you from potential future increases,” says Myron Jobson, senior personal finance analyst at interactive investor.

“However, it’s important to weigh this against the possibility that energy prices could stabilise or decrease in the future, potentially leaving you locked into a higher rate.”

Jobson notes that many fixed rate tariffs come with exit fees and urges consumers to ensure they are comfortable with committing to those terms. He also says it is worth exploring if your supplier “offers any incentives or support schemes that could alleviate the impact of rising energy costs”. These could include providers offering free electricity during specific periods or discounts for off-peak usage.

“Ultimately, the decision to fix your energy bills should be based on a careful assessment of your personal circumstances and a thorough comparison of available tariffs.”

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.