Best fixed energy deals: Tariffs that beat the price cap

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The best energy deals can save the average household around £265 a year against the upcoming energy price cap, so it’s worth comparing tariffs to see if you can save money.

With the cap set to increase in October to £1,755, the energy regulator, Ofgem, is urging households to consider switching to a fixed tariff in order to cut costs.

Fixed energy deals have been returning to the market following the energy crisis, leaving many households asking whether now is a good time to switch.

The current price cap is set at £1,720, and the best energy deal this week has an average annual bill of £1,490, offering annual savings of £230. 

It’s always worth comparing energy providers if you’re looking to make savings and avoid paying more than you need to. With October’s cap increasing by 2 per cent, the average household could lock in savings by switching to the best fixed energy tariff currently available.

Along with comparing energy tariffs, it’s a good idea to try cutting your bill with our energy saving tips too.

Certainty over your bills: The unit cost of energy won’t rise when you’re on a fixed tariff

The table below shows you the cheapest energy deals this week, according to Uswitch. It’s a good idea to compare the best deals with what you are currently paying, because rates vary by region. 

Keep in mind that the cap doesn’t limit your total bill – energy companies charge for energy by the kilowatt hour (kWh), so if you use more than the average household, you’ll pay more. 

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.

> Compare the best energy deals with Uswitch* 

Best energy deals this week

This is Money says: The landscape for energy deals remains competitive following October’s price cap announcement, with energy providers continuing to provide strong deals to encourage customers to switch.

Uswitch says there are around 31 fixed deals available that beat the October cap, which is increasing to £1,755 annually for the typical household. 

It’s a good idea to shop around to find the top deals. Not every energy provider will be on every comparison platform. 

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.

In terms of unit costs, from October households will pay 26.35p/kWh for electricity and 6.29p/kWh for gas, with standing charges of 53.68p and 34.03p 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. 

Tim Jarvis, director general of markets at Ofgem, said we’re seeing signs of a healthier market for energy deals: ‘There are more people on fixed tariffs saving themselves money, switching is rising as options for consumers increase, and we’ve seen increases in customer satisfaction, alongside a reduction in complaints.’

Ofgem has also said that fixed tariffs, or paying by direct debit or smart pay, can help you save money.

Suppliers British Gas and EDF Energy give longer-term predictions for how the cap might move. For January, they predict a cap of around £1,745, but their confidence in their predictions is low.

This is because energy prices remain volatile – the market is easily influenced by international events and political tensions that can’t be forecast.

But fixing could at least help to provide some stability for your bills over the longer term.

How many fixed energy deals are there?

While there are now fixed-rate energy deals that households can switch to that undercut the Ofgem price cap and save money, it’s taken a few years 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 has left 22 million households lumbered with variable-rate deals.

With fixed energy tariffs returning to the market, switching energy provider could once again help you save money on bills.

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?

With savings of around £265 a year available against October’s price cap for the average household, and the likelihood of higher energy bills as we head into winter, now is a good time to consider fixing energy prices. 

You could save money if you can find one that beats the current cap and forecasts for future changes. Be sure to consider how much the cap will move over the whole year, not just the next few months.

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.