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Fixed Tariff vs. Variable Energy Tariff in 2025

The energy market remains a topic of concern for many UK homes following the recent price cap rise. From April 1st, UK energy prices rose by over 6% for the average UK home, going from £1,738 to £1,849 until June 30th. Forecasts for July, October and January 2026 so far indicate further potential increases, leaving homes with likely higher bills. So, the question of whether to opt for a fixed or variable energy tariff is more relevant than ever.

Understanding the differences between these two tariff types is crucial for making an informed decision that suits your individual needs and budget.

  • Variable Tariffs:
  • Fixed Tariffs

What will they be like in 2025?

Variable tariffs are directly linked to the energy price cap, and prices adjust to the rate applied by Ofgem when that period begins. This means that your unit rates and standing charges will fluctuate in line with the cap, which is reviewed and adjusted by Ofgem every three months. While this can provide cheaper prices during lower price cap periods, it also leaves you vulnerable to price increases, as we're currently experiencing and forecasted to continue.

The uncertainty surrounding future decreases in the price cap currently makes a variable tariff with any energy provider seem like a riskier option than a fixed tariff.

See our variable tariff

wind turbines in the UK

The Safe Choice for 2025?

On the other hand, fixed tariffs offer a degree of price stability as you're in control for a set period. By locking in a single price for your monthly energy (unit rate), you can shield yourself from potential price cap increases. This provides greater predictability and allows for more effective budgeting. While you won't benefit from price decreases during the fixed term, you'll avoid the shock of sudden price rises, especially with the predicted upward trend for 2025 and early 2026.

Explore our fixed tariff

solar panels with wind turbine in the UK

Why Switch to Your Co-op Energy's Fixed Tariff

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Provides peace of mind with a set energy price for 12 months.

Allows for easier budget planning, shielding you from unexpected price cap rises

Our customer service has received over 6,000 5-star Trustpilot reviews.

100% renewable electricity generated by wind, solar and hydro

Single electricity or dual-fuel (with gas) available

No exit fees

No engineer visit required for your simple switch without disruption

father and daughter looking at solar panels

Your Co-op Community Power Tariff: Fixing with more than just Energy in Mind

At Your Co-op Energy, we understand the importance of both price stability and quality of service for customers. However, we also recognise that renewable energy provides a unique opportunity to support local communities that own energy assets like wind, solar and hydro generators. With our energy supply partner, Octopus Energy, we have a joint venture named Younity, which supports community energy groups with expertise, grants, platforms for connecting like-minded people and PPAs (power purchase agreements) to fairly purchase the energy they generate for our Community Power tariff.

Community energy is set to play an increasingly significant role in the UK's transition to a green economy with a renewably powered grid. You can support the UK's green transition and local energy groups while benefiting from:
  • Lower fixed energy price for 12 months
  • Excellent customer service rated on Trustpilot
  • No exit fees (for any of our tariffs)
  • 100% renewable electricity generated by local groups
  • Reduced carbon footprint for your home