Should you fix your energy prices?

Last Updated: 7th March 2025

Yes! You should still consider fixing. From 1st July 2025, the energy price cap is set to [insert updated figure, e.g. £1,755], down from £1,849 in the previous quarter. While this slight drop offers some short-term relief, energy prices remain volatile — and with winter approaching, there’s a risk of future increases.

Fixed-rate energy tariffs are currently averaging around £1,585, meaning you could still save around £170 a year while locking in price certainty and protecting your household from future hikes.

Our expert says

"Switching to a fixed energy tariff could still save the average customer over £170 a year, and in some cases, much more. Back in February, we helped one customer save £1,598 by moving them to a 12-month fixed deal. With prices still unpredictable, now’s the time to compare and lock in a rate that works for you."

- Scott Byrom, Chief Executive Officer

Switching to a "fixed" energy tariff means that your unit rate and daily standing charge are locked in. Thus, your bill will only increase if your usage does; if you use less, you'll pay less.

Here's what you'd pay under the upcoming Energy Price Cap if you don't switch:

• Gas Unit Rate: £0.0633 per kWh

• Electricity Unit Rate: £0.2573 per kWh

• Gas Daily Standing Charge: £0.2982

• Electricity Daily Standing Charge: £0.5137

And here's what you could be paying with a fixed-rate tariff:

• Gas Unit Rate: £0.05 per kWh
• Electricity Unit Rate: £0.21 per kWh
• Gas Daily Standing Charge: £0.28
• Electricity Daily Standing Charge: £0.33

Comparing tariff types:

• Fixed Tariffs: Your rates are fixed, meaning no surprises for the duration of the tariff, usually 1 to 2 years.
• Variable Tariffs: Rates can fluctuate based on market conditions.
• Capped Tariffs: Rates can decrease but won’t exceed a set upper limit.
• Tracker Tariffs: Rates follow the market but are set at a margin below the Energy Price Cap.

Benefits of fixed tariffs: Beyond the immediate savings, fixed tariffs offer predictable billing, aiding in budget management regardless of market volatility.

Keep in mind: Energy prices can change rapidly due to various factors, including global geopolitical events and fluctuations in the wholesale market, as evidenced by recent developments globally. Thus, locking in a rate with a fixed tariff can shield you from unexpected hikes and provide peace of mind.

For detailed comparisons and to find the best fixed tariff for your needs, visit our Fixed Price Energy Guide.

How long should you fix for?

This is a personal choice about how much reassurance you want about your energy costs. However, being realistic, given the need to rapidly increase investment in renewable energy and the infrastructure of our grid to handle this increase in electricity demand, energy prices are unlikely to fall. In fact, if you look back over the last 10 years, energy prices have increased by an average of 5% every year. 

Here you need to consider the premium you're paying to fix for longer (if that is indeed the case), how comfortable you are locking in your energy costs at that rate for the necessary period of time, and, should energy prices fall at some stage, what is the "exit fee" of the tariff to terminate the contract. These "exit fees" have increased significantly over the years an range from £50 to £200 per fuel i.e. £100 to £400 for a dual fuel (both gas and electricity) energy tariff. 

How to find the best fixed energy tariff?

Our quick guide for this would be:

1. Ensure you have a copy of your most recent energy bill to hand and identify your projected or estimated annual consumption in kilowatt-hours (kWh).
2. Visit an Ofgem accredited price comparison site (such as TheEnergyShop.com) to carry out your energy comparison.
3. Ensure that the tariffs are fixed and look at the term of the deal, e.g., 1, 2, or 3 years.
4. Check the applicable exit fees to see how much you would be charged if you switched energy during the tariff's term.
5. Visit websites such as TrustPilot to look at customer reviews for the gas and electricity supplier you have shortlisted. It's also a good idea to check out the energy supplier's Twitter feed to see what customers are messaging them about. You want to see good responses and look out for any trends, e.g., issues with call centre support.
6. Once you have picked your new energy tariff, you can switch energy suppliers through the selected price comparison website OR by calling the supplier directly. Some tariffs are exclusive to price comparison sites, though, so be careful not to be switched to something else, as energy supplier agents are paid a commission to switch you over the phone.

Ultimately, it's your call, but hopefully, this quick guide has conveyed our thoughts and opinions in a clear and useful way. As always, we're open to feedback and welcome readers to reach out to us and help us improve the advice we provide.