Should I switch to a fixed tariff?

Did you know that the vast majority of households in the UK are on the default tariff with their energy supplier - over 22 million homes! 

This is usually known as the Standard Variable Tariff (SVT), although some suppliers may call it something slightly different. If you are on the default tariff with your supplier, the rates for your energy go up or down every 3 months in line with the price cap set by Ofgem. 

Fixed tariffs are where the rate you pay for each unit of gas/electricity you use and daily standing charges are fixed for a certain period - again, usually 12, 18 or 24 months. 

You can currently find fixed energy deals that are 10-15% lower than the current default Standard Variable Tariff (SVT). 

Fixing now can give price certainty and protect you from energy price increases over the winter months. By moving to a fixed tariff, you will be sure of what rate you will be paying for the duration of the contract.

Although it may sound like the best option, fixed tariffs aren't suitable for everyone.

Customers with pre-payment meters aren't able to access fixed tariffs and not all fixed tariffs are available for everyone. For example, some are only available for existing customers, or those with smart meters, or those paying by direct debit.

If you prefer to pay on receipt of energy bills, the fixed tariff may have slightly higher unit rates/standing charges than if paying by direct debit.

Fixed tariffs can have exit fees if you wish to leave the contract early, and you can also miss out on energy price decreases during the term of the contract, meaning that if the Ofgem price cap decreases you may be paying more on a fixed tariff than you would on the SVT.

A good place to start is the Money Saving Expert website, which is updated frequently as new tariffs become available or existing ones end.

It may be a good idea to also check out online reviews for energy suppliers before switching to a new provider - Trustpilot or Which are good options for this.

If you want help with checking your tariff, or support with switching to a cheaper provider, you can get in touch with our friendly Energy Advice Team on 01752 477117 or energyteam@plymouthenergycommunity.com. Alternatively, you can use the contact form below: