Moving onto a fixed rate tariff or switching suppliers for a better deal on your energy hasn’t been an option for a while. However, gas and electricity prices are going down, so when is the right time to fix?

What are the best energy deals?

The Energy Price Guarantee is currently set at £2,500 a year for households with average usage. On 1 July 2023 this will be replaced by the Ofgem price cap at £2,074 a year.  

There are fixed deals available for less than the price cap, but until now these have only been offered to existing customers. Keep an eye out for letters and emails from your supplier to find out if there are any you can sign up for.  

When are energy prices going down?

The Ofgem price cap is worked out based on how much it costs to buy gas and electricity on the wholesale market. The price cap changes every three months, at the start of January, April, July and October. Ofgem announces what the price cap will be about a month before it changes.  

Right now, we only know the price cap for July to September 2023, and we won’t find out the exact price cap for October to December until 25 August 2023. However, experts have predicted that based on wholesale energy costs, the price cap will go down in October, but only slightly.   After October, it's hard to tell what energy prices will do.

I've been offered an existing customer fixed rate deal, should I sign up for it?

It’s difficult to budget for your everyday living costs when you don’t know what your bills will look like in six months’ time. Fixing your energy bills can help you know what to expect each month.  

If you’ve been contacted by your energy supplier offering you a fixed deal that’s less than the £2,074 a year July price cap, then it could be a good idea to sign up for it. 

Your supplier’s quote might not give you the annual cost for an average home, it could be based on your usage. Use the price cap unit rate and standing charge below to compare to what your supplier has offered. 

It's up to you to decide if knowing what your bills will be every month is worth the risk that energy prices will go down considerably this winter, and you could end up overpaying by moving onto a fixed deal.

Can I switch energy supplier?

You can switch energy companies if you want to, however there are currently no fixed deals available to customers switching onto a new supplier. It could still be worth switching if you aren’t happy with the customer service from your current supplier, but your monthly bill won’t change. 

Because some suppliers have already started offering existing customer fixes, a spokesperson from the Energy Saving Trust has said it’s quite likely that other companies will bring out more fixed offers soon, so it might be worth waiting to see what you can get. 

How can I save money on my energy bills?

While you might not be able to reduce the amount you pay per unit of gas or electricity, if you can use less, then your bills will go down. 

Our article Energy-saving ways to reduce your fuel bills has lots of ideas on how to cut back on the energy you use.

Making your home more energy efficient could help you make long-term savings. Our guide about paying for home improvements has information about grants and loans you can apply to for things like better insulation or a more efficient boiler.