With energy bills going up for the majority of households this autumn, is now the time to opt for a fixed energy tariff?
The Ofgem energy price cap is due to soar 10% on 1 October - a change that will affect the roughly 27 million households that are sitting on a standard variable tariff. It means the average bill will come in at around £143 a month, £12 more than under the current July to September cap. Your actual bill will differ depending on how much energy you use.
In mid-August, research by energy consultancy Cornwall Insight found the average saving from a fixed tariff was just £5 a year. But given the next price cap could see energy bills get even more expensive, this saving may yet increase.
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It comes amid fears of how escalations of the conflicts in the Middle East and Ukraine could impact global wholesale energy prices. The UK is highly exposed to international pricing as it imports a large chunk of its energy.
So, what fixed energy tariffs are currently available - and should you opt to lock in your energy prices? We've got the latest advice.
How much does a fixed energy tariff cost?
While some five million households have a fixed deal - around one million more compared to the last quarter - about 27 million households are sitting on the energy price cap. Ofgem estimates that if the October level of the cap applied for a 12-month period, it would cost an average household £1,717 a year.
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 next set of price cap unit rates (1 October to 31 December) are:
| Fuel | Price per kilowatt hour (kWh) | Standing charge (per day) |
| Gas | 6.24p | 31.66p |
| Electricity | 24.5p | 60.99p |
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, even if 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.
Here are the top tariff options that are available direct to all new customers, and how they compare with the October price cap (sadly there are no widely available options that come in below the current price cap):
Deals that are cheaper than the October price cap
- Outfox the Market Fix’d Dual Aug24 v4.0 - The estimated annual cost of this deal is £1,592, which is 8% (£125 a year) below the next price cap and only slightly above the July to September price cap rate. Exit fees are £25 per fuel.
- Octopus Energy Octopus 12M Fixed August 2024 v3 - At £1,626 a year, this deal is 6% below the October cap. It means you would save £91 on average. There are no exit fees.
- Co-Op Energy Co-Op 12M Fixed August 2024 v2 - This tariff comes in at exactly the same rate at the Octopus one (above) and also has no exit fees.
- EDF Energy EDF Essentials Fixed 1Yr Sep25 - The yearly cost of this tariff is estimated to come in at £1,637 on average. This means you would make a 5% (£80 a year) saving on the October price cap. Exit fees of £25 per fuel apply.
- E.ON Next Next Fixed 12m v23 / E.ON Next Gust 12m v8 - These tariffs come in 3% (£57 a year) below the October cap at £1,660. Should you leave early, you can expect a £50 exit fee to be applied per fuel.
- British Gas Fixed Tariff 12M v9 - This tariff costs exactly the same as the E.ON tariff (above) and has the same exit fees.
- E.ON Next Pledge Tracker 12m v5 - This deal is not a fix, but is worth considering. It stays £50 below every price cap for 12 months (which works out as about 3% less). You must have or be willing to have a smart meter installed (where possible). There are no exit fees, and both new and existing customers can get it.
- Sainsbury’s Energy Sainsbury’s Fix and Reward Fixed 12 v23 - At £1,690 for 12-months (average), this tariff offers a 2% (£27 a year) saving. It comes with £50 per fuel exit fee.
- Co-Op Energy Co-Op Community Power 12 Fixed August 2024 v3 - This fix costs an estimated £1,691 a year, which is 2% (£26 per year) saving against the October cap. No exit fees apply.
- OVO Energy 1 Year Fixed + Greener Electricity 23 August 2024 - Weighing in at £1,705 annually, this tariff is only 1% (£12 a year) below the October price cap. It also has a £75 exit fee per fuel.
Source: Uswitch.com (correct as of 23 August)
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 in 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. For example, Ovo Energy offers a fix that comes in below the October cap. But it requires the billpayer to sign up to a boiler cover package for the 12-month term. So, the overall cost of the deal comes in above the price cap (although boiler cover could be handy if your appliance is coming to the end of its operational life).
If you have an EV, there are specific tariffs available that could be cheaper than the deals mentioned above.
Should you fix your energy tariff?
When the energy crisis hit in 2021, energy suppliers all but stopped offering fixed energy tariffs to consumers. But since July 2022, when energy prices started to come down, deals have become more numerous and have become a bit more competitive.
This downwards trajectory peaked in early 2024, when the cheapest fixes came in hundreds of pounds cheaper thanks to falling wholesale prices. By June, you could still save £81 a year on average, according to Cornwall Insight.
Under those conditions, a fixed deal made sense. But with news that a rise in wholesale prices would lead to a rise in the cap in October, good deals that are competitive with the July to September rate of the cap have been rapidly disappearing from the market. Indeed, Cornwall Insight expects we won't see a return to consistent three-figure savings "anytime soon". So, what should you do now?
When the latest price cap announcement was made on 23 August, Richard Neudegg - Uswitch's director of regulation - said: “The good news is, households don’t have to put up with the uncertainty of rising bills, as right now there are fixed deals available that are cheaper than the new price cap.
“The cheapest 12 month fixed tariff [Outfox the Market's Fix’d Dual Aug24 v4.0 - se above] offers protection against another potential rise in January. It’s important for households looking for certainty to run a comparison to see what’s available to them and see personalised prices based on how much energy they are likely to use."
The question of whether to switch to a fix also depends on your attitude to risk, and whether you believe energy bills will rise or fall this winter and into next year. 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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