Fixed vs Variable Energy Tariff
Choosing between a fixed and variable tariff is the single biggest decision affecting your UK energy bill this year. Here's how they compare.
Fixed tariff
Unit rates and standing charges are locked in for 12–24 months.
Pros
- Price certainty
- Often cheaper than the cap
Cons
- Exit fees (£75–£150/fuel)
- Lose out if wholesale prices fall
Variable tariff
Rates move with the Ofgem cap, updated every 3 months.
Pros
- No exit fees
- Benefit if prices fall
Cons
- Bills can rise with little notice
- Usually capped, not cheapest
Which should you pick?
If a fixed deal is at least 5% below the current cap and you value certainty, fix. If the market is forecast to fall meaningfully and you can absorb short-term swings, stay variable.
Should I switch right now?