It’s worth calling your current supplier to ask for a better deal. For example, find out if you can opt for paperless billings or move to a cheaper tariff. These simple steps might lead to big savings.
Ordinarily, a fixed rate tariff can be good for the below reasons. But now, with energy prices so high, there are no cheap fixed deals available for new customers. This means it’ll probably be cheaper for you to stay on the standard variable rate because prices for the average customer will be capped to £1,277 per year (£1,309 if you're on a prepayment meter).
If you're already on a fixed rate deal, you will automatically be moved onto the standard variable rate when your deal comes to an end.
Below are some of the reasons why a fixed rate tariff can be good:
- you know how much you can expect to pay over the time period the tariff lasts (for example, two years) so it will help you with household budgeting. Getting a fixed tariff doesn’t mean your energy bills will stay the same, regardless of how much energy you use. You’ll pay the same rate per unit. But if you use more units, your bill will be higher.
- it will protect you if prices rise again during the term of your fixed deal.
- in the unlikely event that prices go down you can usually leave the tariff for a small exit fee (sometimes even for free) and switch to a cheaper deal.
If you're on a standard variable tariff, you can also use comparison sites to see if you can get a cheaper deal elsewhere. Switching energy providers might seem like a hassle but it's simple to change supplier and save money.