1 – Fixed rate energy tariff

If you agree a fixed rate contract with a supplier, your gas and electricity prices will remain fixed for the duration of your contract. You can fix your energy from a 1 to 5-year contract with a supplier of your choice. Fixed term contract offering will vary per supplier, it is more common to see contract lengths between 12 and 24 months.

It is important to remember that your unit rate and standing charges are fixed but your monthly bill can vary depending on your energy consumption. If you use more electricity and gas then you are likely to get higher bills.

A fixed term contract is ideal for those who want to keep track of their energy usage and spending habits. While you are in a contract, you are protected from any energy price rises which means wholesale energy price rises will not affect you during your contract.

Most energy suppliers will offer a fixed term contract but these usually comes with an exit fee. If you terminate your contract before your renewal window then your supplier will charge you a set fee which is usually agreed while taking out a contract. Exit fees can vary per supplier and the provider can charge up to £35 per fuel. Once your fixed term contract has ended, your supplier will roll you over to a standard variable rate which means traditionally, you are paying a higher rate for the both the daily charge and the unit rate compared to you contracted rate. By law, you can also switch your energy supplier 49 days prior to your current contract end date without being charged any exit fees, this is also known as the “renewal window”