When your fixed energy tariff is ending, it is your chance to take control of your energy future with clarity and confidence. This moment offers an opportunity to assess your options and ensure you are on the best possible deal for your household.
Managing your energy bills should be clear and easy to understand. Fuse Energy focuses on straightforward pricing, so you can see exactly what you are paying without unnecessary complexity. Click here to switch to Fuse Energy today.
Understanding the default path is the first step in making an informed decision. When your fixed energy tariff reaches its end date, your supplier will typically roll you onto their Standard Variable Tariff (SVT). This happens automatically if you do not choose a new tariff or switch suppliers.
Understanding the default: Standard variable tariffs
A SVT means that the unit rates you pay for gas and electricity, along with the standing charge, can change. These tariffs are influenced by wholesale energy costs and are subject to the energy price cap set by Ofgem. While SVTs offer flexibility with no exit fees, their prices can fluctuate, potentially leading to higher bills if wholesale costs rise.
The impact of the energy price cap
The energy price cap, set by Ofgem, limits the maximum amount energy suppliers can charge for each unit of gas or electricity on a SVT. This cap is reviewed and updated every three months, taking effect on 1 January, 1 April, 1 July, and 1 October. It applies to most households on variable tariffs, providing a safety net against excessive charges, but it does not limit your total bill - that still depends on your energy usage.
Notifications from your supplier
Your current energy supplier is required to notify you before your fixed tariff ends. This notification should outline your current tariff's end date, any potential exit fees, and what your new rates will be if you roll onto their SVT. This window is crucial as it allows you time to explore other options without incurring early exit fees. You can typically switch without penalty if you are within the last 49 days of your contract.
Deciding whether to opt for another fixed tariff or move to a variable one depends on your personal circumstances and outlook on the energy market.
Weighing fixed versus variable tariffs
Fixed tariffs offer price certainty, locking in your unit rates and standing charges for a set period, typically 12 to 18 months. This can be beneficial for budgeting and provides peace of mind against potential price rises. However, if wholesale energy prices fall, you will not benefit from those reductions, and fixed tariffs often come with exit fees if you leave early. Variable tariffs, on the other hand, offer flexibility and no exit fees, meaning you can switch at any time. The trade-off is that your rates can go up or down with the market and the energy price cap.
Assessing your risk appetite and usage patterns
Consider your comfort level with price fluctuations. If you prefer stable, predictable bills, a fixed tariff might be more suitable. If you are comfortable with market changes and want the flexibility to switch without fees, a variable tariff could be an option. Understanding your household's energy consumption is also key. The average UK home uses around 2,700 kWh of electricity per year. Knowing your actual usage from past bills helps you compare deals more accurately and potentially find ways to make energy bill savings.
Current energy market outlook
The energy market is subject to volatility, influenced by global events and wholesale prices. While forecasts can suggest future price movements, they are not guarantees. Some suppliers have temporarily withdrawn fixed deals during periods of high market uncertainty. It is important to compare available deals against the current energy price cap to make an informed decision.
Finding a new energy deal does not have to be complicated. A structured approach ensures you consider all relevant factors.
Gathering your current energy information
Before comparing, gather your recent energy bills. These will provide crucial information such as your current tariff name, end date, unit rates, standing charges, and annual energy consumption (in kWh). This data is essential for accurate comparisons.
Using energy comparison websites
Reputable energy comparison websites allow you to input your usage details and compare offers from various suppliers side-by-side. These tools can help you identify potentially cheaper deals or tariffs that better suit your needs. Remember to use your actual usage data rather than relying solely on "average usage" estimates, as these can vary.
Considering direct offers from suppliers
Do not just rely on comparison sites. Check for deals directly with your current supplier and other providers you might be interested in. Sometimes, suppliers offer exclusive tariffs to existing customers or deals not listed on comparison platforms.
Taking proactive steps when your fixed tariff ends is a strategic move to manage your energy costs effectively.
Checking for exit fees and switching windows
Most fixed tariffs include exit fees if you switch before your contract ends. However, you can typically switch without penalty if you are within the last 49 days of your contract. Always check your contract terms or contact your supplier to confirm any fees.
Understanding the switching process
Switching energy suppliers is now a straightforward process, typically taking up to 5 working days. Your new supplier will handle most of the process, including contacting your old supplier. Your energy supply will not be interrupted during the switch. You also have a 14-day cooling-off period after agreeing to a new contract, during which you can cancel without penalty. If you have a smart meter, you can often track your usage in detail through your supplier's app, helping you make informed decisions. Even if you do not have one, many suppliers, including Fuse Energy, offer a free smart meter upgrade once you switch.
What to look for in a new supplier
Beyond price, consider factors like customer service, contract length, and how the supplier empowers you with information. Fuse Energy, for example, offers a digital-first experience with 24/7 human support, providing tools and transparency to help you understand your options and make informed decisions. Choosing a supplier that aligns with your desire for control and clarity can turn the end of a fixed tariff into an opportunity for a genuine power play.
Can I switch before my fixed tariff ends?
Yes, you can switch before your fixed tariff ends, but you might incur exit fees if you are outside the 49-day switching window. If you are within 49 days of your contract ending, you can switch to a new supplier or tariff without paying any early exit fees.
What if I do nothing when my tariff ends?
If you do nothing, your energy supplier will automatically move you to their SVT. While your supply will not be interrupted, the rates on an SVT can change, and they are typically more expensive than fixed deals.
How often does the energy price cap change?
The energy price cap is reviewed and updated by Ofgem every three months. These changes come into effect on 1 January, 1 April, 1 July, and 1 October each year, affecting the maximum rates suppliers can charge on SVTs.
Managing your energy bills and finding the right tariff can feel complex, but it does not have to be. Fuse Energy offers clear pricing, real-time usage data, and 24/7 human customer support to help you navigate your energy choices with confidence. Our digital-first approach is designed to put you in control. Click here to switch to Fuse Energy today and experience a modern way to manage your home's energy.
