Households are increasingly asking whether to fix their energy prices following substantial bill increases in July. While a competitive fixed tariff could protect against future price rises and potentially save money, choosing the wrong deal might lead to higher costs if prices later fall.
The Ofgem price cap, which limits how much suppliers can charge per unit of gas and electricity on eligible default tariffs, changes every three months. This means households on standard variable tariffs do not yet know their exact rates for the coming winter. A forecast from Cornwall Insight on 22 July projected the October to December typical bill at approximately £1,700 under the new consumption definition, though this is not a confirmed figure.
When considering a fixed deal, it is important to understand that it fixes the unit rates for gas and electricity, not your total bill. Your bill will still depend on how much energy you use. To make an informed decision, compare how much a proposed tariff would charge for your actual annual consumption, rather than relying solely on headline price-cap figures based on typical usage.
Before committing to a fixed tariff, check the unit rates for both electricity and gas, the daily standing charges, any potential exit fees, and the length of the fixed term. Exit fees, for example, could reduce or eliminate savings if you decide to switch providers before the fixed term ends.