Fixed-rate energy tariffs

What’s a fixed energy tariff?

A fixed energy rate is exactly what it says on the tin: it fixes the price you pay for gas and electricity for a set amount of time. 

Energy suppliers typically offer fixed deals that last anywhere from 12 to 24 months. Fixed rates are based on the price of energy per unit, plus the standing charge. The standing charge is the supplier’s fee for providing you with energy. 

A fixed-rate tariff protects you against potential increases in energy costs. But you won’t benefit if prices fall.

Also, fixed rates might only apply to the price of energy per unit. If the supplier’s standing charge goes up, your bill will too. 

What happens when my fixed energy tariff ends?

When your fixed energy deal is up, chances are you’ll be automatically moved to the supplier’s standard variable tariff (SVT). 

SVTs can be more expensive than fixed-rate tariffs but given the energy market's current state you might find this isn't the case.

A supplier could charge an exit fee if you decide to leave a fixed deal early. But you don’t pay if you leave within 49 days of the deal ending – this is known as the ‘switching window’.

Price increases at the end of your fixed-rate tariff

Energy rates might have risen during your fixed energy deal. In this case, the jump in price may seem high. 

But remind yourself that energy prices would have risen anyway. So, you would have saved money during your fixed energy deal. 

Fixed-rate tariffs and exit fees

As we mentioned, you might need to pay an exit fee if you want to leave your fixed energy deal early. The exit fee is sometimes known as a cancellation or termination fee. 

Not all suppliers charge this, so it’s worth finding out before you sign up. And you could switch within 49 days of your contract ending without paying a fee. 

Also, if you happen to find a better deal shortly after taking out a fixed energy deal, you could still switch without paying. Suppliers have to offer a 14-day cooling-off period, giving energy customers the right to change their mind without being penalised.

When to get a fixed energy deal

Fixing can be a gamble. You could end up locked in a deal charging a premium for energy (though you could pay a fee to exit and switch). They can also be a great idea when the market is volatile and prices are going up and down.

A good sign of when to fix is when good deals start disappearing from the market. This is usually around wintertime, when the wholesale price of energy rises with demand. But if the prices of energy keep on rising you might be better off with an SVT because you'll be protected from by the energy price cap, whereas suppliers can pretty much charge what they like with a fixed deal. 

When searching for fixed deals, don’t just compare energy tariffs from the ‘big six’ suppliers. You might find a better tariff with a smaller supplier. Smaller providers are often praised for their excellent customer service, too. 

The price you end up paying for energy depends on a whole host of factors. These include where you live, how much energy you use, and how you choose to pay your bills. All this means there’s no ‘one size fits all’ tariff – you need to look for the deal most suited to you. 

How do I get a fixed-rate deal?

Getting a fixed-rate deal is usually pretty straightforward, but right now there might not be any reasonably priced tariffs because of the current energy crisis. If you still want to compare what's out there, here’s what to do:

• Start the quote process – you’ll be shown prices and tariffs from all UK energy suppliers
• Enter your details to see a price comparison table. This will contain the names of suppliers, estimated annual savings, monthly and annual costs, payment and tariff type, and key features
• Filter results by tariff type to view only fixed-rate options. You can compare fixed against variable and/or green tariffs at this point
• When you find the right deal, click through for more information on the product and supplier

You could also try going direct to suppliers and seeing what they have to offer.