Is now the time to fix your energy bill?

Some good news though! The energy price cap – the maximum amount you pay for each unit of energy you use – has gone down. That means around 21 million households on variable tariffs will be paying on average around £10.75 less each month.

So are the days of energy price hikes over? Sadly not, as bills are still much higher than they were five years ago. Furthermore, prices are only predicted to drop a paltry 1 per cent in three months’ time at the next price cap announcement. So with all this volatility, is this the point where you should fix your bills? Here’s my guide.

Should I switch suppliers or fix my bill?

Energy switching is when you go to another energy provider to get a better deal. For years, this wasn’t really worth it, unless you really hated your energy provider. But these days, we’re finally seeing some better deals to entice you away.

Fixing is where you agree to ‘fix’ a price for energy for the duration of the contract. You can do this by switching or by staying with your current energy supplier. There are lots of fixing deals out there, with the best ones offering fixes of over 10% lower than the current price cap, though T&Cs apply.

If you’re looking for a good deal, you may find the options bewildering. Put simply, you can:

• Fix a higher discount, but with exit fees / other conditions.
• Fix a lower amount with no exit fees.
• Fix just gas or electricity.
• Choose a ‘discounted variable price cap’ tariff that stays a fixed amount under every price cap.

Stuck on a pre-payment meter? There are some fixed deals out there for you too. Bear in mind you’re on a slightly cheaper price cap already though.

Despite the tempting deals, there are a number of factors you need to bear in mind if you are thinking about fixing.

• Duration. How long is the contract?
• Total price of the contract. How much are you saving by fixing a price over the term of the contract?
• Exit fees. How much do you have to pay to get out of the contract early?
• Deal breakers. Do you have other contractual obligations to get a good deal, like agreeing to take out an insurance policy through the business too?

Exit fees apply to many deals and range considerably in price. So bear in mind if the price caps drops significantly, it might be costly to jump ship.

Should I fix or switch?

No-one can guarantee what the next year will hold. But finally, it might be worth considering fixing the price you pay for energy. But don’t rush in to it. Look at all the options and have a think about what your plans for the next few years might involve too.

What if I can’t afford to fix my bill?

If you don’t have enough money to cover your outgoings – or you are left with little to cover you for emergencies – you meet the definition of financial difficulties.

According to Ofgem’s regulations, your energy provider should come up with a tailored plan to meet your needs. You can read what businesses are supposed to do on Ofgem’s website.

The regulator says that you can ask for the following:

• A review of your payments and debt repayments
• Payment breaks or reductions
• More time to pay
• Access to hardship funds
• Advice on how to use less energy

The option to go on the Priority Services Register – a free service for a wide range of people struggling or who need support:

If you feel that the business is not listening then you can take your complaint to the Energy Ombudsman for free. Make it clear to the business that you expect them to take no action against you while the matter is looked in to by the ombudsman.

Martyn James is a leading consumer rights campaigner, TV and radio broadcaster and journalist. For more from Martyn, visit this link