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Is now the time to switch to a fixed energy deal?

Is now the time to switch to a fixed energy deal?
Emma Lunn
Written By:
Posted:
27/02/2025
Updated:
27/02/2025

Experts are urging households to switch to a fixed rate energy deal ahead of the April price hike.

Ofgem announced earlier this week that the energy price cap will go up by 6.4% to £1,849 for the typical household from 1 April, adding £111 to the average annual bill.

Millions of households are on standard variable tariffs, which follow the price cap – meaning their bills will rise from April.

Richard Neudegg, director of regulation at Uswitch.com, said: “Consumers can take action to avoid this. If you are still riding the rising rates, now is the time to find a better deal.

“There are plenty of fixed deals available that are cheaper than today’s rates, let alone the higher April prices. A fixed deal could protect you from further price increases for 12 months or longer.

“The cheapest fix on the market, currently from Outfox the Market, could save the average household around £179 per year versus the April price cap.

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“The larger suppliers are also vying for customers. The cheapest large supplier fixed deal is from British Gas and could save the average household around £172 per year against the April rates.

“Households still sitting on a deal linked to the price cap can absolutely beat the upcoming hike. We urge anyone who hasn’t switched in a year or more to see what savings they can make.”

The best fixed energy tariffs

Supplier Tariff Fix duration Average annual bill Saving versus the April price cap (£1,849)
Outfox the Market Fix’d Dual Feb25 v2.0 12 months £1,670 £179
Outfox the Market 18-Month Fix’d Dual Feb25 v2.0 18 months £1,671 £178
Outfox the Market 2-year Fix’d Dual Feb25 v2.0 24 months £,1672 £177
British Gas Fixed Tariff V32 16 months £1,677 £172

 

+£20 Uswitch Cashback*

So Energy So Aspen Two Year – Green 24 months £1,682 £167

Data from Uswitch, correct as of 25 February 2025

How to reduce your energy usage

As well as switching to a fixed tariff, households can reduce their bill by using less energy.

Business energy comparison site Bionic offers the following tips:

Get a smart meter

Installing a smart meter means you can pinpoint exactly how your home could be more energy efficient. There are no more estimated bills and no need to give your supplier a meter reading, which will save time, money and hassle.

Use timers

Les Roberts, business energy comparison expert at Bionic, said: “Only heating up your home when you need to can be done by simply setting the timer on the thermostat to start the heating at certain times, or consider a time-of-use tariff that offers cheaper rates at certain times.

“On this point, it may also be worth switching to a time-of-use tariff or off-peak tariff, where the price of energy will be lower at times when the grid is under less pressure and demand is lowest, which tends to be between 10pm and 8am.”

Replace old appliances and use them efficiently

Older electrical appliances tend to be less energy efficient, so it might be worth upgrading your large appliances, like washing machines and dishwashers, if you’ve had them for more than 10 years.

More efficient models cut the kilowatt-hour used significantly, so running costs will be much lower and, over time, the money spent on the appliance will be made back in savings.

Turn your heating down

Roberts said: “Turning down your thermostat by just one degree is a change you probably won’t even notice, especially as we move into warmer months, and could reduce your heating bills by as much as 10%. Remember to also adjust your thermostat in relation to the external temperature.”