Is it time to move to a fixed energy tariff?

Is it time to find a fixed energy tariff now that the Ofgem energy price cap has increased? We look at the most recent offers for gas and electricity

Millions of households will see another increase in their energy bills in April 2025. Are you considering switching to a fixed energy tariff at this time? The Ofgem energy price cap will increase by 62.4 percent between April and June. This is in addition to a 1.2 percent increase from January to March and a 10 percent increase from October 1st of last year. In April, the average household on a dual-fuel standard variable tariff that pays by direct debit will see an increase in energy prices from 1,738 to 1,849; however, the precise amount you pay will vary based on your usage. Approximately 22 million households with standard variable tariffs are impacted by the energy price cap. We list available fixed deals and discuss whether you should stick with the price cap or switch to a fixed energy tariff in light of the April price increase.

The cost of a fixed energy tariff?

Data gathered by Ofgem in February 2025 shows that approximately 22 million households are sitting on the energy price cap, while 11 million households have a fixed energy transaction. Under a standard variable or default tariff, the cap establishes the highest price that can be charged for each unit (kWh) of energy and standing charges. The duration of this limit is three months. These are the current price cap unit rates, which run from January 1 to March 31.

Please note that your actual unit rates will vary depending on where in the UK you live, and that these Ofgem figures are national averages. The website of the energy regulator provides additional information about costs in your region.

If you choose to fix your energy, your unit rates will remain fixed for a predetermined amount of time, typically a year. This means that your unit rates and standing charges will not change if the price cap increases or decreases. This can save you money against future price caps and is helpful if you value the assurance of knowing exactly what you'll be paying for the upcoming year. According to Cornwall Insight, an energy consultancy known for its accurate forecasts, the price cap will drop by about 5% between July and September.

However, due to the high levels of market volatility, the consultancy states that their prediction is "extremely likely to change multiple times before the cap is set in three months."

You can avoid higher energy prices until July if you sign up for a fixed rate energy tariff that is less than the price cap hike scheduled for April. You might have to pay more than you need to, though, if the price cap drops in the next quarter.

Nevertheless, you may also be shielded from increased bills in the fall and winter if energy prices rise once more in the final quarter of the year.

In 2025, on May 27, the energy price cap for July 1September 31 will be announced. The best tariff options that are offered directly to all new clients are listed here, along with a comparison to the April price cap.

Available to both new and existing customers, Outfox the Market Fix'd Dual Feb25 v2.0 is a 12-month dual-fuel fix that is 10 points lower than the April cap. If you decide to leave before the deal expires, there are 50 dual-fuel exit fees. New and existing customers can take advantage of the Outfox the Market 18-Month Fix'd Dual Feb25 v2.0 tariff, which is 9.6 percent less than the April cap. Each fuel exit fee is fifty dollars. This 2-year fixed rate tariff, Outfox the Market 2-year Fix'd Dual Feb25 v2.0, is 96.5 percent less than the April price cap. There is a 75 per fuel exit fee, and both new and returning customers are welcome. This 16-month fixed rate tariff, which is available to both new and existing customers, is priced at 94.4 percent less than the price cap. A 50 exit fee is charged for each fuel. Uswitch.com is the source (updated as of February 26, 2025).

Even though these discounts are widely accessible, there might be loyalty programs that offer better prices than those mentioned above but are only available to current clients. See if you qualify for such a rate by speaking with your supplier. It is important to keep in mind that certain offers have restrictions, like the need for a smart meter or the requirement to obtain additional services. Certain tariffs may be less expensive than the offers listed above if you drive an electric car.

Does your energy tariff need to be fixed?

Now might be a good time to consider whether you should choose a fixed rate energy tariff, since the price cap is scheduled to increase by 63.4 percent in April. Your risk tolerance and your prediction of rising or falling energy costs in the upcoming year will determine whether you decide to move to a fixed rate tariff. It may seem wise to lock into a fixed deal now that is 10% or 9% less expensive than the impending price cap because you will be paying less than customers on price cap tariffs. However, if you must leave early, be aware of exit fees.

As the year goes on, will you still be able to save money? Cornwall Insight predicts that the price cap will remain at 1,756 from July to September. Moving to a fixed energy tariff could save you a lot of money until summer, if the forecast is accurate. Following that, it becomes more challenging to forecast whether fixing could result in cost savings.

The current lowest fixed rate tariff on the market is 1,650 per year, which is about £100 less than Cornwall Insights' early July price cap forecast. George Frost, Country Manager at iChoosr, which offers a collective energy switching program to reduce energy costs, told BFIA that, in response to future price cap increases, consumers should consider switching to a fixed cost tariff. "The market can change and not all forecasts will be realized," Frost said. In the event of a sharp decline in the market, it might be worthwhile to pay a nominal early termination fee in order to abandon a tariff that has been agreed upon, Frost continued. Nevertheless, even in the event that the market increases, all households on fixed tariffs will be shielded from price increases for a full year. Check out 'Will energy prices fall in 2025?' for the most recent price cap forecasts.

Switching regulations for Ofgem energy suppliers fluctuate.

If you decide to switch, it's important to be mindful of the recently implemented regulations by the Ofgem regulator. In the past, suppliers had 15 working days to finish a switch. Should this limit be exceeded, the new client would be entitled to reimbursement.

Starting on April 1, 2024, suppliers must finish customer switches in five working days (six if a contract is signed after 5 p.m.). They will be required to compensate the impacted customers with £30 if they don't.

You should file a direct complaint with the supplier you are switching to if they do not switch you over in a timely manner. You can file a complaint with the Energy Ombudsman, who will settle the matter if they don't give you the money you're entitled to.