What are the cheapest fixed price energy tariffs? (January 2025)

A fixed rate tariff is an energy tariff where the price you pay for each unit of energy, like electricity or gas, stays the same for a set period, usually one or two years.
This means that even if energy prices go up or down in the market, your rates won’t change.

You pay the same amount for the duration of your contract, which can help you budget better since you know what to expect.

The energy price cap is a limit set by the government through Ofgem, the energy regulator, on how much energy suppliers can charge for each unit of energy on standard variable tariffs. The cap was last updated on 1st January 2025.

This cap is designed to protect consumers from being overcharged, especially those who don’t shop around for better deals.

The cap is reviewed every 3 months and can go up or down depending on market conditions. However, it doesn’t apply to fixed-rate tariffs.

Choosing a fixed rate tariff today can help you lock in your energy prices before they go up.

With energy costs rising due to the January 2025 price cap, fixing your rates now could save you money over the next year or two.

By choosing a fixed rate, you protect yourself from any future price increases, which could happen if the energy market continues to become more expensive. It’s a way to secure some stability in your bills.

Fixed-rate tariffs keep your energy prices the same throughout your contract, giving you predictability in your bills.

On the other hand, variable rate tariffs can change depending on the market. This means your energy prices could go up if the market rates increase, but they could also go down if the rates decrease.

Fixed rate tariffs offer stability, while variable rates offer the possibility of savings but also the risk of higher costs.

Exit fees are charges that you might have to pay if you decide to leave your fixed rate tariff before the contract ends.

These fees are set by the energy supplier and are meant to cover the costs they incur when a customer cancels early.

If you switch to another tariff or supplier before your contract is up, you may have to pay this fee as a penalty for breaking the agreement. These fees are generally per fuel. So if you have both gas and electricity with a supplier, you’ll have to pay an exit fee for each.

You usually have to pay exit fees if you leave your fixed rate tariff before the end of your contract. This could happen if you find a better deal elsewhere and decide to switch, or if your circumstances change, like moving to a new home.

Some suppliers might allow you to leave without paying exit fees if you’re close to the end of your contract or if they offer a grace period. It’s important to check the terms before switching

First, look at the contract length to ensure it fits your needs.

Also, check the exit fees if you want to switch tariffs before the contract ends.

Compare the fixed rate with current variable rates to see if it’s a good deal.

Additionally, think about your energy usage and whether a fixed tariff will help you save money based on your consumption patterns.

Fixed-rate deals usually last for one or two years, but some suppliers may offer shorter or longer contracts.

A one-year deal gives you stability for a short period, while a two-year deal locks in your rate for a longer time. It’s important to choose a contract length that matches your needs.

If you think energy prices might go up in the next few years, a longer deal might be more beneficial. However, if you prefer more flexibility, a shorter contract might be better.

Yes, you can switch from a variable rate to a fixed rate at any time, as long as you’re not locked into a contract with exit fees on your current tariff.

Switching to a fixed rate can be a smart move if you find a deal that offers a lower price or if you want to protect yourself from potential price increases.

It’s a good idea to regularly check for better deals and switch when you find one that meets your needs.

Fixed-rate tariffs are predictable because the price you pay per unit of energy stays the same for the entire contract period. This means your bills will be consistent, helping you to plan your budget more easily.

Unlike variable tariffs, where prices can change, fixed tariffs give you the certainty of knowing exactly what you’ll pay each month (although this obviously will increase or decrease depending on your usage).

This predictability is one of the main reasons people choose fixed-rate tariffs, especially in times of uncertain energy prices.

You can find the cheapest fixed-rate tariffs by using online comparison websites that allow you to compare deals from different energy suppliers.

These sites let you enter your details and see which tariffs are available in your area.

It’s also helpful to check if any suppliers are offering special discounts or incentives for new customers.

Make sure to read the terms and conditions carefully, including the exit fees, before deciding on a tariff.

When your fixed rate ends, your supplier will usually move you to their standard variable tariff, which might be more expensive.

To avoid this, it’s a good idea to start shopping around for a new deal a few weeks before your contract ends.

You can either choose another fixed rate tariff or switch to a variable rate if it offers better value at the time.

Some suppliers might offer you a new fixed-rate deal to keep you as a customer, so it’s worth asking about your options.

The cheapest fixed-rate tariffs might come with some risks, such as higher exit fees or less flexibility if your circumstances change.

Additionally, if energy prices drop after you’ve locked in your rate, you won’t benefit from the lower prices. It’s also possible that the cheapest deals may be from suppliers with lower customer service ratings.

It’s important to weigh these factors against the potential savings before deciding on the cheapest tariff.

Yes, fixed-rate tariffs can vary by region because energy suppliers may have different costs for distributing energy in different areas.

This means that a tariff might be cheaper or more expensive depending on where you live. When comparing tariffs, make sure to enter your postcode to get accurate pricing for your region.

It’s also worth noting that some suppliers only operate in certain regions, so your options might be different depending on your location.

If you move house during a fixed-rate contract, you might be able to transfer your tariff to your new home, but this depends on the supplier.

Some suppliers allow you to move your contract without any issues, while others might require you to pay exit fees if the tariff isn’t available at your new address.

It’s important to check with your supplier before moving to understand your options and avoid unexpected charges.

Energy suppliers determine fixed tariff prices based on a variety of factors, including the cost of buying energy in advance, the cost of delivering energy to your home, and their own operating expenses.

They also consider market conditions and any expected changes in energy prices over the duration of the contract.

Suppliers set prices to cover their costs and make a profit, so fixed tariffs are priced to reflect these factors over the contract period.

A fixed-rate tariff can save you money in the long run if energy prices rise during your contract period. By locking in a lower rate, you avoid paying more when prices go up.

However, if prices fall, you won’t benefit from the lower rates, which means you could end up paying more than you would on a variable tariff. It’s a trade-off between price stability and the potential for savings, so it’s important to consider your own financial situation and risk tolerance.

The top fixed-rate tariffs available right now vary depending on your location and energy usage. To find the best deals, you can use comparison websites that show the latest tariffs from different suppliers.

Look for tariffs that offer a good balance of low rates, reasonable contract lengths, and manageable exit fees.

Keep in mind that the top tariffs can change quickly as market conditions evolve, so it’s important to act fast if you find a deal that suits your needs.

Fixed tariff rates can change frequently in the market, depending on factors like wholesale energy prices, competition among suppliers, and changes in government regulations.

Some suppliers may adjust their rates monthly, while others might change them less often. Because of this, it’s a good idea to keep an eye on the market and compare tariffs regularly to ensure you’re getting the best deal.

Even if you’re currently on a fixed rate, knowing the market can help you plan for when your contract ends.