Should I fix my energy bills?
Published on:
26 June 2023
Last updated:
01 October 2023
Moving onto a fixed rate tariff or switching suppliers for a better deal on your energy hasn’t been an option for a while. However, gas and electricity prices are going down, so when is the right time to fix?
What are the best energy deals?
The Ofgem price cap is now £1,834 a year, and this won't change until 1 January 2024.
There are fixed deals available for less than the price cap, and these are now available for both new and existing customers. Keep an eye out for letters and emails from your supplier to find out if there are any you can sign up for.
When are energy prices going down?
The Ofgem price cap is worked out based on how much it costs to buy gas and electricity on the wholesale market. The price cap changes every three months, at the start of January, April, July and October. Ofgem announces what the price cap will be about a month before it changes.
We won’t find out what the next price cap will be until later on this year.
I've been offered an existing customer fixed rate deal, should I sign up for it?
It’s difficult to budget for your everyday living costs when you don’t know what your bills will look like in six months’ time. Fixing your energy bills can help you know what to expect each month.
If you’ve found a fixed deal that’s less than the £1,834 a year October price cap, then it could be worth considering.
Your quote might not give you the annual cost for an average home, it could be based on your usage. Use the price cap unit rate and standing charge below to compare to what your supplier has offered.
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Energy unit price For Price Cap from 1 October 2023 |
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Electricity |
£0.27 per KWh Daily standing charge: £0.53 |
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Gas |
£0.07 per KWh Daily standing charge £0.30 |
Source: OfgemOpens in a new window
It's up to you to decide if knowing what your bills will be every month is worth the risk that energy prices will go down considerably this winter, and you could end up overpaying by moving onto a fixed deal.
Can I switch energy supplier?
Recently, a handful of energy suppliers have started offering fixed deals at around the same level as the price cap. These deals are open to both new and existing customers, so it could pay off if you were looking to switch suppliers.
Take a look at our guide to comparison sites for more information.
How can I save money on my energy bills?
While you might not be able to significantly reduce the amount you pay per unit of gas or electricity, if you can use less, then your bills will go down.
Our article Energy-saving ways to reduce your fuel bills has lots of ideas on how to cut back on the energy you use.
Making your home more energy efficient could help you make long-term savings. Our guide about paying for home improvements has information about grants and loans you can apply to for things like better insulation or a more efficient boiler.
