Fixed Energy Deals Save Households £173 a Year 2026

Households could save up to £173 a year by switching to a fixed energy deal, according to new analysis. With the energy price cap set to rise again in October, locking in a fixed tariff can protect you from future increases and deliver significant savings on your annual energy bills.

Why Switch to a Fixed Energy Deal?

Energy prices have been volatile, with the price cap rising 13% in July and another 4% expected in October. This means the average household on a default tariff will pay the equivalent of £1,723 a year. By switching to a fixed deal, you can avoid these hikes and secure a predictable rate for one or two years.

Fixed tariffs offer a set standing charge and unit costs for the duration of the contract. This stability is particularly valuable as we head into winter, when heating usage typically increases.

How Much Can You Save?

According to Ofgem, fixed tariffs are currently available at £100 or more below the October price cap. In some cases, the savings can reach up to £173 a year for a typical household. These savings are especially significant for those who have been on default tariffs for years.

About 11 million homes (35% of all households) are already on fixed tariffs and are protected from the upcoming rise. If you're not among them, now is the time to consider making the switch.

Comparison of Tariff Types

Key Takeaways

• Switching to a fixed energy deal can save up to £173 a year.
• The October price cap rise will increase bills by 4% for default tariff customers.
• Fixed tariffs offer price stability and protection from future increases.
• Ofgem recommends comparing offers to find the best deal for your usage.
• Act now to lock in savings before winter heating season begins.

How to Switch Your Energy Tariff

Switching is straightforward. Start by comparing offers from different suppliers using comparison websites or directly on their sites. Consider the standing charge, unit rates, and any exit fees. Once you've chosen a deal, the new supplier will handle the switch, which typically takes about 17 days.

Before switching, check your current contract for any exit fees. If you're on a default tariff, you can switch anytime without penalty. Also, ensure the fixed deal you choose has no hidden charges.

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