However, since July the price cap is now the scheme limiting bills. It only applies to variable tariffs and not fixed ones.Fixed deals, where you are tied in to a contract with your provider, used to be the cheapest way to pay for your energy.
They are now returning to the market as prices begin to lower with some now available below the price cap. Most are fixed for a year or more.Whether you should fix your energy deal will depend on what sort of deal you can get and whether you are willing to risk energy prices going up or down again. Others like Utility Warehouse’s Fixed Saver 6 deal requires customers to sign up to two other products with the firm, like broadband. This is also the only one below the new price cap at £1,873 on average.Natalie Mathie, energy expert at Uswitch.com, said: “Only those on fixed tariffs have the certainty of knowing what they will pay for the full term of their deal, which is usually a year. During that time, customers on variable tariffs will see their bills change four times.
For those thinking of switching to a fixed deal, experts are warning people to pay attention to any exit fees, which could cost up to £200 per fuel.