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The cheapest fixed energy deal this week: A 14-month tariff from Fuse Energy, priced at £1,550 annually for the average household that pays by direct debit. This is £113 below July’s price cap and £173 below October’s one. Exit fees are £50 per fuel.
The energy regulator Ofgem has announced a 4 per cent rise in the energy price cap in October. The average household that pays by direct debit can expect to pay around £1,723 annually under the new level.
Experts don’t expect costs to let up in 2027 either, with the energy analyst Cornwall Insight currently predicting a further 9 per cent rise in the cap in January to £1,872.
If you haven’t fixed your tariff in a year or more, it’s likely you’re on one that follows the price cap – and you could save money by choosing a new deal.
The cheapest fixed energy tariffs can save you money against both the current cap and October’s rise. Signing up for one will also protect against ongoing volatility in energy prices, giving you certainty over your bills.
Keep in mind that Ofgem has updated its average energy consumption figures to reflect the fact that people are using less energy. This means that average annual costs listed under the price cap and fixed deals will look lower than they did before. The current cap for a typical household that pays by direct debit is £1,663 under the new figures, but was previously announced at £1,862 under the old ones.
It’s a good reminder that the price cap or fixed deal doesn’t limit your total bill. Instead it sets the maximum that energy suppliers can charge for each unit of energy. If your energy usage isn’t the same as the average household, your annual bill will look different to the cap.
The energy price cap fell in April for the average household and increased by 13 per cent in July, but it’s worth highlighting that the Government removed certain levies from April which should lower your bills.
Comparing energy providers can help you save money and avoid paying more than you need to.
The table below shows you the cheapest energy deals this week, according to comparison website Uswitch. It’s a good idea to compare the best deals with what you’re currently paying, because rates vary by region.
The cap doesn’t limit your total bill – energy companies charge for energy by the kilowatt hour (kWh).
It’s therefore important to check the unit rate – how much you’re charged per kWh – on a new fixed tariff against that of your existing deal.
Best energy deals this week
Sabrina Hoque, an energy expert from Uswitch, comments: ‘Households on a standard variable tariff who don’t make the crucial switch to a fixed tariff risk paying more for their heating this winter.
‘With 17 deals currently undercutting the October price cap by up to £173, there is plenty of choice for households wanting to pay less and protect themselves from any future increases.’
It pays to shop around, checking comparison websites as well as going direct to energy providers. Not every energy provider will be on every comparison platform. You can compare deals and sign up today at Uswitch*.
Keep in mind that the annual price quoted is only what the average household can expect to pay over the year. Your actual bill will depend on how much energy you use, so check the unit cost of energy when comparing tariffs.
Unit costs under July’s cap are 26.11p/kWh for electricity and 7.33p/kWh for gas, with standing charges of 57.19p and 29.04p per day respectively.
From October, the unit costs are 26.32p/kWh for electricity and 7.97p/kWh for gas, with standing charges of 54.83p and 29.68p per day respectively.
Should I fix my energy and switch providers?
Switching to a fixed tariff from a variable one could put more money in your pocket. It’s also worth thinking about fixing your energy if you like to know how much your bills will be each month.
Energy unit costs and standing charges stay the same over the length of a fixed contract, helping you budget.
Energy suppliers themselves also predict movements in the price cap and EDF Energy is predicting the cap will increase to £1,932 in January.
But the market is easily influenced by international events and political tensions that can’t be forecast, so predictions should be taken with a pinch of salt. EDF Energy says its confidence in its January prediction is ‘very low’.
Fixing could at least help to provide some stability for your bills over the longer term.
Read more: The energy price cap should be scrapped, say industry experts
How many fixed energy deals are there?
There has been a good range of fixed energy deals over the last year, with many offering savings against the price cap. And while energy suppliers pulled deals following the escalating conflict in the Middle East, there are now more than 20 available.
While there are fixed-rate energy deals that households can switch to that undercut the Ofgem price cap and save money, it took a few years after the energy crisis for providers to start offering them again.
Until the energy crunch arrived in late 2021, the advice was simple: households should switch energy providers regularly to get the best deal possible.
The cheapest deals were fixed-rate tariffs, with variable rates normally reserved for households that had reached the end of their cheap tariff and not switched.
But affordable fixed-rate deals began to vanish in autumn 2021, because wholesale energy prices started rising.
Many comparison sites then paused their energy switching services, energy providers stopped taking on new customers, and the common advice was that most people would be better off on deals subject to the Ofgem price cap.
This left 22 million households lumbered with variable-rate deals.
Can my energy price increase on a fixed tariff?
Your energy provider can’t raise your unit cost of energy or standing charge while you’re on a fixed tariff.
Your bill could still move up and down depending on how much energy you use. If you use more, you’ll pay more.
It’s the standing charge and cost per unit of energy that’s fixed, not your overall bill.
Is now a good time to fix energy prices?
The main benefit that fixing provides at the moment is stability and protection against unpredictable future pricing.
You need to consider how prices will move over the entire length of the fix rather than just the next few months. And be sure to consider exit fees, because you’ll need to pay these if cheaper fixes do return to the market and you want to switch to a better deal.
You can compare the best energy deals* for you based on your home and gas and electricity costs through This is Money’s recommended partner Uswitch.
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