Fixed price energy tariffs explained
Find out more about fixed tariffs - how they work, their benefits and whether a fixed tariff is best for your home.
What are fixed-price energy tariffs?
Fixed price energy tariffs, deals or plans (they all mean the same) are a type of gas and electricity tariff that lock in an energy cost per kilowatt hour (kWh) for a specific length of time; usually one or two years.
These fixed energy deals can protect households from energy price rises.
How long can you fix your energy costs for?
With fixed tariff energy, the rate you pay for each unit of gas and electricity stays the same for the duration of your contract. However, it’s important to note that fixing the rate does not mean your total bill remains fixed. If you suddenly start using more energy than normal, your bill cost will get higher.
Most fixed deals typically last between one and two years. During this time, you won’t have to worry about sudden price changes, making budgeting easier as you can better predict your energy spend.
What do you get with a fixed energy tariff?
Fixed energy tariffs give you:
- Stability: The cost per unit of energy (kilowatt hour) remains consistent, regardless of market fluctuations
- Peace of mind: You won’t be affected by sudden energy price increases during your contract
- Budget predictability: Fixed rate energy deals helps you plan your finances more easily, as you know your energy costs won’t suddenly rocket
Should I switch to a fixed rate tariff?
Deciding whether to switch to a fixed energy tariff depends on how your household uses energy.
It's worth thinking about:
- Price cap: If you’re currently on a standard price-capped tariff, compare it against the fixed-rate options. Ofgem's energy price cap limits how much energy companies can charge rates for each gas and electricity unit, but it changes every three months. It's worth researching how much it may change over the next year. Some fixed energy plans are cheaper than the price cap
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Winter Months: Consider fixing at any level below the January cap during winter, as energy usage tends to be higher during colder months, as we use more energy to keep warm and see in the evenings!
Comparing fixed energy tariffs
When comparing fixed energy tariffs, look beyond just the rate. It's always important to consider contract length, exit fees and customer service. A well-chosen fixed deal can provide peace of mind and financial stability in an ever-changing energy market!
Information about energy tariffs and more!
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Compare energy tariffs
Energy tariffs are how you pay for the energy you use in your home. Depending how you like to pay for energy and how your homes uses it, will affect which tariff is best for you. Read our handy guide to choose a tariff that's best for you
Switching energy suppliers
Not sure how to switch? Our quick four-step change supplier page explains what to do. And if you have more questions, read our comprehensive guide on energy switching.