With energy prices expected to rise again, now could be a good time to check whether you're on the best energy tariff for your household.
The energy price cap was introduced by Ofgem in 2019 to help protect households from being charged excessively high rates on standard energy tariffs.
The cap limits the unit rates and standing charges that suppliers can charge customers on standard variable tariffs (SVTs), which are often the default tariffs many households are placed on.
From 1 October 2026, the price cap is due to increase by 3.6%, following a 13% increase in July 2026. For a typical household, this could mean paying around £60 more per year.
There are also forecasts suggesting a further increase from January 2027, although future prices remain uncertain and will depend largely on changes in wholesale energy markets.
You may be on a standard variable tariff if:
The price cap does not apply to some specialist green energy tariffs that customers choose to join voluntarily.
For more information on the energy price cap, visit the Money Saving Expert website.
A fixed tariff locks in your energy unit rates for an agreed period, typically 12, 18 or 24 months.
This means that if energy prices rise during your fixed-term contract, your energy rates will remain the same, potentially helping you save money and providing greater certainty over your bills.
However, fixed tariffs are not risk-free. If energy prices fall in the future, you could end up paying more than customers on cheaper variable tariffs. Some fixed deals may also include exit fees if you switch before the contract ends.
No one can predict future energy prices with complete certainty.
A fixed tariff may be worth considering if:
You may want to think carefully before signing up to a longer fixed deal if you believe energy prices could reduce in the next year or two.
The best option will depend on your own circumstances, budget and attitude to risk.
For independent guidance on whether current fixed deals are worth considering, visit the Money Saving Expert website.
The Money Saving Expert team have produced a helpful video explaining the current energy market and the pros and cons of fixed tariffs.
The information provided in this article is intended as general guidance only and should not be considered financial or energy tariff advice.
While fixed tariffs may offer protection against future energy price increases, there is no guarantee that switching tariffs will save money.
Energy prices can go down as well as up, and in some circumstances a fixed tariff could result in higher costs over the course of the contract than remaining on an alternative tariff.
Any decision to switch energy supplier or tariff is entirely the responsibility of the individual household. We encourage residents to carefully consider their options, compare available tariffs, and seek independent advice where appropriate before making a decision.
As the Local Authority, we do not recommend any specific energy supplier or tariff and accept no liability for any financial loss, additional costs, or dissatisfaction arising from a decision to switch energy tariffs based on the information provided. This information is offered solely to help residents make informed choices about their energy costs.