Should I fix my energy deal?
Energy prices are going up on 1 October. Beat the rise today.
What's happening with energy prices?
Energy prices are rising because of the war in the Middle East.
The next energy price cap covers the period between 1 October and 31 December. It will be increase by 4%. Additionally, current estimates predict that the next price cap, which comes into effect in January, could rise by as much as 19%, putting it over £2,000 a year.
| Price cap level | Annual energy cost for an average usage medium-sized household paying by Direct Debit |
|---|---|
| 1 January to 31 March 2026 | £1,584 |
| 1 April to 30 June 2026 | £1,477 |
| 1 July to 30 September 2026 | £1,663 |
| 1 October to 31 December 2026 | £1,723 |
| 1 January to 31 March 2027 (British Gas/EDF/E.ON Next average prediction) | £2,152* (+25% increase from previous cap) |
| 1 April to 30 June 2027 (British Gas/EDF/E.ON Next average prediction) | £2,118* |
*Based on supplier predictions as of 16 September 2026
So should I fix my deal?
Yes. There are savings to be had with fixed deals, but these could disappear at any moment depending on what happens in the Middle East. An additional benefit of fixing will be that you'll be protected for at least 12 months through the highest usage period in winter.
If you decide to do nothing, your prices will increase in October and probably again in January.
You can see our advice based on different situations below.
If you're on a fixed energy deal with more than 49 days left on your contract, you can fix again if you want to, but you should probably stay put for now.
This is because you'll probably have to pay an exit fee to leave your contract early, and it's unlikely that you'll find a cheaper fixed deal with prices currently high and likely to stay that way for the rest of the year. If you do decide you want to fix, make sure you factor your exit fees into your potential savings.
If you don't want to fix, you can manage your energy usage to save money instead.
If you're on a standard variable energy deal, you should strongly consider switching to a fixed deal.
Your rates are determined by the energy price cap, which is set at £1,663 per year for an average use household paying by Direct Debit until 30 September. However, it will increase to £1,723 in October.
Overall, energy prices are likely to stay high until at least next spring, so you should fix to guarantee that your rates will stay at the same level for at least the next 12 months. Remember, though, that the actual amount you spend on energy will depend on the amount of energy you use.
If you're on a fixed energy deal with less than 49 days left on your contract, you can switch to a new fixed deal now - and you should strongly consider doing so, even if it's more expensive than the current deal that's due to end.
When your fixed deal ends, you'll roll on to a standard variable tariff, so your bills will increase and stay high for the rest of the year.
You don't have to wait until the end of your contract to switch. If you're inside the final 49 days, you can switch without paying any exit fees.
What should I consider when switching energy?
Do consider exit fees. You may change your mind about your fixed deal and want to switch again. But if this happens after your cooling-off period, you might have to pay an exit fee. Not all tariffs have exit fees but most do, so make sure to check the terms of your current tariff.
Do consider the length of the deal. Most tariffs last for 12 or 24 months. During this time the price cap could rise or fall based on market conditions, so consider how long you would like to stay locked in for.
Do stay informed. Keep a close eye on the market and run regular comparisons to see what deals are on offer. If you sign up for alerts, you can stay close to what’s happening in the energy market and find out when a good deal comes along.
Don’t get a deal you can't afford. Make sure you can afford the deal you choose and don’t rush into one that you'll struggle to pay for.
Don’t just look at the direct debit amount. The price you pay through Direct Debit each month is usually based on your estimated energy usage over a year. This may not be the actual cost. Make sure you look at the unit rate and standing charge to work out how much you will be charged for your energy usage. You can also see how it differs from what you’re paying now. Find out more about fixing your energy deal here.
Customers will have to consider their finances and how important price certainty is to them before signing up to a fixed deal. The right decision for someone else might not be the right decision for you, so make sure you consider all your options carefully.
You can compare fixed energy deals that are currently available by clicking below.
Run an energy comparison
Click here to compare energy prices and get started on your energy switch.