Should I Fix My Energy Tariff?

As we head into the new year, it's crucial to be aware of the upcoming changes to the UK's energy price cap. While the October 2024 price cap was higher than the previous summer cap set in July, the January 2025 cap is set to rise again. This means that if you're on a standard variable energy tariff, your energy bills could increase as of January 1st, 2025.

By switching to a 12-month fixed-rate deal now, you can safeguard yourself against the 1.2% price rise for both gas and electricity starting on January 1st and lasting until the 31st of March.

Fixing your energy tariff now will protect you from rising energy costs, so it's essential in order to save money.

Ofgem has just announced that UK customers that can leave their existing variable tariffs without large exit fees, should consider cheaper fixed deals as an option.

To find out if you can fix, you likely need to find out if you can change the tariff with your existing provider or leave that provider entirely. To do this there may be a leaving option on your energy account or the provider's website, if not you should contact customer services.

Finding out how to leave and if there are any hefty exit fees will ensure you know if you can now fix your energy tariff. We never include exit fees at Your Co-op Energy, so if you're with us, you can always switch to a fixed tariff.

From January to March 2025, households using prepayment meters will incur slightly lower costs than those using direct debit, with an average bill of £1,690, a £21 increase from the last quarter. According to Ofgem, approximately 4 million households had prepayment meters (and rising each month) as of April 2024.

The energy price cap set by Ofgem will be reflected in the cost you are charged for each unit of energy. The unit price fluctuates based on the region, payment method, and the time of day when the energy is consumed. However, the revised unit prices will rise in line with the price cap starting from the 1st of January 2025.

However, these changes mean suppliers must give customers more opportunities to clear their debts before switching them to a meter. They cannot be installed at all in certain households.

Changes to the winter fuel payment mean more than 10 million pensioners will not receive a winter cash payment. Before 2024, all senior citizens In England and Wales born before 25 September 1957 were provided with the winter fuel payment.

But in July of this year, the government said future payments would only be received by those on low incomes who also received certain other benefits, including pension credit.

Those who are eligible will be sent their winter fuel payment (£200-£300) in November or December 2024. It's worth remembering that hundreds of thousands of eligible people do not claim pension credit and without this, you cannot receive the new winter fuel payment.

At Your Co-op Energy, we offer two fixed tariffs that can save you money over the next 12 months and reduce your home's carbon footprint. Our tariffs only use 100% renewable energy, and you can even have your electricity uniquely generated here in the UK with our Community Power tariff.

The Community Power tariff only uses electricity generated by local groups who own the renewables powering your home. A more sustainable and community-focused approach that's redefining British power generation. Switching means you're fixed for 12 months, reducing your home's carbon footprint and having Excellent rated Customer Service (Trustpilot) like all our tariffs.

To help you pick the right option, we have a guide to finding the best energy tariff for you.

Fixing your energy tariff now will ensure you are paying a lower energy bill, so it's essential in order to save money.