Should I fix my energy prices?

This limit applies in England, Scotland and Wales. In Northern Ireland, the Utility Regulator checks that the prices charged are fair.

There are a few fixed deals available for less than the July price cap for both new and existing customers. Keep an eye out for letters and emails from your supplier to find out if there are any you can sign up for.

You can also use comparison sites to find better deals from other energy companies.

The Ofgem price cap is worked out based on how much it costs to buy gas and electricity on the wholesale market. The price cap changes every three months, at the start of January, April, July and October. Ofgem announces what the price cap will be about a month before it changes.

It’s difficult to budget for your everyday living costs when you don’t know what your bills will look like in three months’ time. Fixing your energy bills can help you know what to expect each month.

Your quote might not give you the annual cost for an average home, it could be based on your usage. Use the price cap unit rate and standing charge below to compare to what your supplier has offered. 

Source: OfgemOpens in a new window

It’s up to you to decide if knowing what your bills will be every month is worth the risk that energy prices will go down during your contract, and you could end up overpaying by moving onto a fixed deal.

Although recently, energy suppliers have pulled a lot of the deals they were offering at below the price cap, it's worth checking if there are better offers out there still. Some energy suppliers are offering fixed deals at around the same level as the July price cap or slightly below it. These deals are open to both new and existing customers, so it could pay off if you were looking to switch suppliers.

Take a look at our guide to comparison sites for more information.

While you might not be able to significantly reduce the amount you pay per unit of gas or electricity, if you can use less, then your bills will go down. 

Making your home more energy efficient could help you make long-term savings. Our guide about paying for home improvements has information about grants and loans you can apply to for things like better insulation or a more efficient boiler.