What do I do if I am on a fixed tariff?

Understanding your fixed energy tariff

A fixed tariff means the price you pay per unit of energy (kWh) and your daily standing charge are fixed for a set period of time. Your monthly bill can still change depending on how much gas or electricity you use, but the rates you pay are locked in until the tariff end date.

Most home fixed tariffs in the UK last for 12 or 24 months, and will show a clear contract end date on your bill or in your online account.

Being on a fixed tariff can protect you from sudden price increases, but it can also mean you are locked into a higher rate if market prices fall. Knowing what to do next depends on:

• How long you have left on your fixed term
• Whether exit fees apply
• How your current rates compare to new deals on the market
• Whether you want price certainty or maximum flexibility

Step 1: Check the details of your current tariff

Before making any decisions, gather the key information from your current supplier. You can usually find this on your most recent bill, your online account, or in your original welcome email or letter.

What to look for

• Tariff name – e.g. “Fixed Saver June 2026”.
• Tariff type – fixed, variable, or standard default tariff.
• End date – when your fixed prices are due to finish.
• Unit rates (pence per kWh) for electricity (and gas, if applicable).
• Standing charges (pence per day) for each fuel.
• Exit fees – any charge for leaving your fixed tariff early.
• Payment method – e.g. monthly Direct Debit, on-receipt, prepayment meter.

If you can’t find this information, contact your supplier by phone, email, or live chat and ask them to confirm your tariff name, end date and any exit fees in writing.

Step 2: Find out how long is left on your fix

The next step is to work out how close you are to the end of your contract. This can affect whether you can leave without penalties and what options are best for you.

If your fixed tariff ends within 49 days

UK energy rules (Ofgem) allow you to switch supplier or move to another tariff up to 49 calendar days before your fixed end date without paying an exit fee.

Within this window you can:

• Switch to a new supplier and tariff with no exit penalties.
• Ask your current supplier to move you to one of their other tariffs.
• Let your fixed deal end and roll onto their default variable tariff (not usually the cheapest option).

Your current supplier must also send you a tariff end reminder, normally around this time, explaining what will happen if you do nothing.

If you have more than 49 days left

If your fixed tariff has longer than 49 days remaining, you usually have two options:

1. Stay on your fixed deal until it ends and review your options closer to the time.
2. Leave early, which may mean paying an exit fee if you move to a different supplier or tariff.

Whether paying an exit fee is worthwhile depends on how much you could save by switching to a better deal now versus waiting for your fix to finish.

Step 3: Compare your fixed tariff against the market

To decide if you should stay on your fixed tariff, move to a new fix, or allow your deal to end, you need to compare:

• Your current unit rates and standing charges
• Your typical annual usage (shown in kWh on your bill)
• New tariffs and estimated annual costs from other suppliers

Use your last 12 months’ usage if possible, or your supplier’s estimated annual consumption. This makes comparisons more accurate.

What are my options if I'm on a fixed tariff?

• Stay on your current fixed tariff if it is cheaper or similar in price to new deals and you value price certainty.
• Switch to a new fixed tariff if other providers are offering significantly lower prices, especially if you are near the end of your current fix.
• Move to a variable tariff if you want flexibility and believe prices may fall, accepting that they could also rise.

Exit fees explained

An exit fee is a charge your supplier may apply if you leave a fixed tariff before the contract end date. It is designed to cover the cost of the energy they bought in advance on your behalf.

Key points about exit fees

• Exit fees are usually charged per fuel (e.g. a separate fee for gas and for electricity).
• They typically range from around £25 to £60 per fuel, but can be more or less depending on the tariff.
• Suppliers cannot charge exit fees if you switch within the final 49 days of your fixed contract.
• You do not usually pay an exit fee for moving to another tariff with the same supplier, but always check the terms.

Before deciding to leave a fixed tariff early, calculate:

1. How much you would save with a new tariff over the remaining months of your current fix.
2. Minus any exit fees you would need to pay to leave.

If the savings are small or disappear once you include exit fees, it may be better to stay on your current fix until closer to the end date.

What happens when my fixed tariff ends?

If you do nothing when your fixed tariff ends, your supplier will usually move you onto their standard variable tariff (also known as a default tariff). This may or may not be the cheapest option available to you.

When your fix is coming to an end

As your tariff end date approaches, your supplier must contact you and explain:

• When your fixed deal will finish.
• What tariff you will move to automatically if you take no action.
• What other tariffs they can offer you.

At this point you can:

• Pick another fixed tariff (with your existing or a new supplier).
• Stay on the standard variable tariff, which may follow Ofgem’s price cap if you are on a default tariff.
• Switch supplier entirely to find a more competitive deal.

Set a reminder a few weeks before your fixed tariff ends so you can review your options calmly and avoid being rolled onto a tariff that costs you more.

Fixed vs variable tariffs: which is better for me?

Whether you should stay on a fixed tariff or move to a variable tariff depends on your appetite for risk and your priorities:

Fixed tariff – pros and cons

• Pros:
  • Price certainty – easier to budget.
  • Protection against sudden price increases.
  • Suitable if you value stability and long-term planning.
• Cons:
  • You may be locked into higher prices if the market falls.
  • Potential exit fees if you leave early.
  • Less flexibility to switch frequently.

Variable tariff – pros and cons

• Pros:
  • Usually no exit fees, so you can switch at any time.
  • You benefit if prices fall.
  • Often follows the price cap for default tariffs.
• Cons:
  • Prices can increase, making bills unpredictable.
  • Harder to plan your monthly budget.

Many households choose a fixed tariff when they want peace of mind, then review their options once the fix ends or market conditions change.

What if my supplier goes out of business while I'm on a fixed tariff?

If your energy supplier stops trading while you are on a fixed tariff, Ofgem will automatically move you to a new supplier. Your supply will continue as normal, and your credit balance will be protected.

However, your fixed prices will not necessarily be honoured by the new supplier. They will place you on a new tariff, often a standard variable rate. Once you have been transferred and the situation is stable, you can shop around and switch to another supplier or tariff if you wish.

You do not need to do anything immediately when a supplier fails. Wait until Ofgem announces your new supplier, then check your new rates and compare them with the wider market.

How to reduce your energy costs while on a fixed tariff

Even if you decide to stay on your current fixed tariff, there are still ways to lower your bills by reducing how much energy you use and improving efficiency at home.

Quick actions you can take now

• Lower your thermostat by 1°C – many homes will not notice the difference, but it can cut heating costs.
• Use LED bulbs and switch off lights in empty rooms.
• Avoid leaving appliances on standby; fully switch off when not in use.
• Wash clothes at 30°C where possible and run full loads.
• Use a timer or programmer for your heating instead of leaving it on all day.

Longer-term improvements

• Improve insulation (loft, cavity wall, draught-proofing) to keep heat in.
• Consider a more efficient boiler or smart heating controls.
• Look into smart meters for better visibility of your usage.

Small changes, especially in heating and hot water use, can add up to noticeable annual savings, even when your unit rates are fixed.

Frequently asked questions about fixed tariffs

Can my prices go up during a fixed tariff?

On a genuine fixed tariff, your unit rate and standing charge should not increase during the fixed term, unless there are very specific circumstances set out in your contract (for example, changes in VAT or regulatory charges). Your total monthly bill can still go up or down depending on how much energy you use.

Can I change my mind after joining a fixed tariff?

When you first switch to a new supplier or tariff, you normally have a 14-day cooling-off period. If you change your mind within this period, you can usually cancel without paying exit fees. After that, standard exit rules apply.

Will I be charged to move to another tariff with the same supplier?

Many suppliers do not charge exit fees if you are moving to another of their tariffs, but this is not guaranteed. Always check the terms and conditions or ask your supplier directly.

Is a longer fixed term always better?

Not necessarily. A longer fix can provide more stability, but you might miss out if prices fall. Balance your desire for security against the risk of being locked into a higher rate for several years.

Simple checklist: what to do if you're on a fixed tariff

• 1Find your tariff name, end date, and any exit fees.
• 2Check how long is left on your fix – are you within the final 49 days?
• 3Use your annual usage (kWh) to compare current deals.
• 4Decide whether price certainty or flexibility matters more to you.
• 5If switching early, factor in any exit fees before making a final decision.
• 6Set a reminder a few weeks before your fixed tariff ends so you have time to act.