Fixing your vitality invoice can prevent cash – however two fifths of households assume it locks in greater customary charges
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Two in five households on a standard variable energy tariff think fixing locks in their existing high rate, according to research from price comparison website Uswitch.
But fixed tariffs can save households hundreds of pounds annually against a standard tariff. If you haven’t fixed in a year or more, it’s worth comparing tariffs* to see if you can secure a cheaper deal.
Households default to a standard tariff when they haven’t locked in a fix, with the energy price cap then limiting how much providers can charge for each unit of energy.
On the other hand, fixed tariffs are priced differently. They’re often cheaper than the price cap because suppliers buy energy in bulk and in advance.
The Uswitch research also reveals that nearly half of bill payers believe that constant bad news about energy costs, the price cap and wars has made it harder to know how to get the best deal.
The good news is that it’s quick to compare energy deals, with fixed tariffs currently offering the average household savings of up to £238 a year against the price cap.
> Compare fixed energy deals with Uswitch*
It’s worth considering fixing as the cold lingers on and energy use is high
A quarter of households haven’t switched in more than three years
According to Uswitch*, a quarter of households on a standard tariff haven’t switched in more than three years.
Fixed tariffs disappeared during the energy crisis in 2022, when the wholesale cost of energy spiked.
The energy price cap sat below the actual wholesale cost of energy, which is why households reverted to standard tariffs and waited for the energy regulator, Ofgem, to announce the level of the cap each quarter.
Natalie Mathie, energy expert at Uswitch, comments: ‘Relentless headlines about bad news, wars, and price rises are draining, and are causing millions of households to be confused and fearful of what action to take.
‘All the confusion has led to many households avoiding making decisions, not realising that leaves them paying more for their energy bills at the most expensive time of year.’
Fixed energy tariffs have reappeared over the last two years and there are now many that can save you money against the energy price cap.
Keep in mind neither a fixed deal nor the energy price cap limits your total bill. Instead they limit the maximum price you’ll pay per unit of energy.
The annual prices quoted are the amount that the average household can expect to pay – usually classed as a medium-sized home with two to three people living there.
If you use more or less than the average household, your bill will shift accordingly.
‘The longer-term outlook for the price of energy is still uncertain, but fixed deals are still offering really good value and are strongly worth considering,’ said Uswitch expert, Natalie Mathie.
‘If you haven’t fixed in a year or more, you’re probably on a standard tariff and paying more than you need to. Running a quick energy comparison using your postcode is the easiest way to see what’s available and lock in a cheaper rate.’
One of the quickest ways to do this is by using a price comparison website such as Moneysupermarket*, Uswitch* or Compare the Market.
