Should I fix my energy tariff?
Sticking or fixing is a decision that most customers will at some point ponder over. Should you fix your energy tariff or stick with a variable one? And if you do fix, for how long? If you’ve got questions about fixed or variable tariffs then read on, as we’ve got the information you need to help you make the right decision.
What is a fixed energy tariff?
A fixed energy tariff locks in your gas and electricity prices for usually one or two years. Variable tariffs go up and down in line with Ofgem’s price cap, whereas fixed tariffs offer stability, peace of mind and price certainty.
A fixed tariff doesn’t put a limit on the total cost of your energy. Instead, it fixes the amount you pay per unit of gas or electricity and for your daily standing charge. So, if you use more energy in your home, your costs can still rise. You can think of it like filling your car with petrol. The price per litre is fixed, but the total cost will change depending on how much you fill up.
What is a Standard Variable tariff?
A Standard Variable tariff (SVT) is an energy plan where the price of energy changes based on the wholesale market and the energy price cap set by Ofgem. SVTs are also known as default tariffs.
The benefits of a fixed energy tariff
- Price certainty: you’ll know exactly how much you’ll pay per unit of electricity and gas
- Protection from price rises: no sudden bill increases if the Ofgem price cap increases
- Peace of mind: your rate will stay the same during your contract period
- You’re in control: if we offer a cheaper fixed tariff in the future, you can switch for free
How to find the best fixed energy deals
- Compare plans: look at our fixed tariff deals, considering exit fees, and contract length
- Check price cap predictions: Ofgem’s energy price cap changes every three months. Consider future predictions when deciding whether to fix
- Evaluate short-term savings: fixing below the current cap during winter months can lead to short-term savings
If you’re a British Gas energy customer
Log in to your online account – you’ll be able to see your current tariff and compare all the tariffs we have available. If you don’t have one, it’s easy to set up and takes less than three minutes.
If you’re not a British Gas energy customer
We'd love you to join over 8 million customers powered by us and getting an energy quote is simple.
What to consider before fixing your energy tariff
- Contract length: do you want to fix for one or two years?
- Exit fees: will you have to pay an exit fee if you leave your contract early? With British Gas, if you choose a fix tariff now, and we launch an even better fixed tariff later on - you can switch at any time for free.
More information
Can I have a single fuel fixed energy tariff?
Yes – if you just have electricity or gas at your home, you can still choose a fixed energy tariff.
What is the energy price cap?
Ofgem introduced the energy price cap to limit the unit rates people pay in the UK for energy. Ofgem review the cap every three months and it only applies to variable or tracker tariffs. Fixed-rate tariffs remain the same price for the length of the contract.
What’s the current energy price cap?
Ofgem’s price cap for October 2024 increased 10% - from £1,568 to £1,717.
If you’d like more help to understand energy tariffs, check out our fixed vs variable energy tariffs guide.