For almost three years, competitive fixed energy tariffs have been a rarity.
When the energy crisis hit in 2021, energy suppliers all but stopped offering them to consumers. It's left most households sitting on standard variable tariffs, the rates of which are governed by the Ofgem energy price cap.
The 28 million or so homes on this type of energy product received some good news on 1 July when the energy regulator's cap plummeted 7%. The news followed a 12% fall in the cap in April.
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However, there are concerns about whether we could see another surge in energy costs this winter. Trusted forecaster Cornwall Insight has said it expects to see prices rise 10% from 1 October - the date of the next price cap.
So, is it worth switching to a fixed deal - and what options are out there? Here's what you need to know.
How much does a fixed energy tariff cost?
Deals that are less than the energy price cap
The energy price cap fell 7% on 1 July, with the current rates set to remain in place until the end of September. Ofgem's limit governs how much you pay per unit (kilowatt hour, or kWh) and for daily standing charges. So, your final bill will depend on your usage.
The cap also varies depending on the size of your home, how many people you live with and what part of the UK you live in (price cap rates are set differently in each region).
However, if you're not on a standard variable tariff (SVT) - the type of energy deal you fall onto when your fix expires - the price cap will not apply to you. So, for example, if you've fixed your energy deal the amount you pay will not change. Ofgem estimates around four million homes are now on a fixed deal.
Here are top the tariff options that are available to new customers, according to comparison website Uswitch, and how they compare with the October price cap Cornwall Insight has predicted (£1,723 a year). None of them beat the July to September price cap (£1,568):
| Supplier | Average annual bill | Exit fees? | % above/below next price cap |
| Outfox the Market | £1,576 | £25 per fuel | -9% |
| E.ON Next | £1,640 | £50 per fuel | -5% |
| Ovo | £1,640 | £75 per fuel | -5% |
| Octopus Energy | £1,640 | None | -5% |
| Co-op Energy | £1,640 | None | -5% |
Correct as of 25 June 2024
We have ranked the top-five fixed deals on the market but there are several others which come in below the price cap rate.
One that is a good option if you're afraid to fix lest future Ofgem caps beat your deal is EDF Ensure. The supplier guarantees that this tariff will come in £25 per fuel below each price cap for a year. So, your bills will still go up or down every three months, but will always come in below the cap.
Your supplier may also have a deal on for existing customers, so it's always worth checking if they work out cheaper. Some deals also come with conditions. For example, you may have to sign up to an add-on from your supplier, such as a boiler cover package.
Other forms of energy product may also be cheaper than the fixes listed above. For example, if you have an EV, there are specific tariffs available that could save you money.
Should you fix your energy tariff?
Until fairly recently, there has been little incentive to switch to a fixed-rate deal. Few suppliers have been able to match the energy price cap. However, with news that energy prices could rise significantly again, experts say the situation has changed.
Ben Gallizzi, Uswitch's energy expert, said: “Despite a slight reduction in the forecast for the October price cap, energy bills are still set to rise significantly for millions of households this winter."
He added: “The long-term outlook still remains very uncertain and it is expected that prices will remain at a similar level in the first quarter of next year. Households should therefore avoid being lulled into a false sense of security from falling energy bills this summer, as the reprieve will be relatively short-lived.
“It’s important to prepare now for future price rises and consider locking in rates while there are competitive deals to choose from. There are plenty of 12-month fixed tariffs available that are cheaper than the predicted price cap for October, which can offer price certainty on what you’ll pay for a year and potentially help you save on your bills.”
Given no one can say where bills will go over the next year, there is no right or wrong answer when it comes to deciding whether to fix. It all depends on your attitude to risk. For the latest price cap predictions, read will energy prices fall in 2024?
Ofgem energy supplier switching rules change
If you do opt to switch, it’s worth being aware of 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.
But, as of 1 April, 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.
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