Best fixed rate and variable rate energy offers August 2021

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It is always a good time to think about changing energy supplier. This means you could start paying less for your gas and electricity and reduce your heat use.

We have listed the cheapest deals on the market below. These are mixed tariffs, where you get your gas and electricity from the same supplier, and the prices are for average households for one year.

You can establish a quote on our energy page to obtain a list of offers adapted to your particular situation. You just need to tell us a bit about where you live and how much energy you use – you can find this information on a recent bill. The process takes around 5-10 minutes and the change itself will be completed in 21 days or less.

Fixed rate tariffs lock in the price per unit of energy for a set period – typically 12 months. This protects you from any increase in energy prices during the term of the tariff, although similarly you would not see any benefit if the prices were to fall.

Variable rate tariffs can go up or down based on the wholesale price of energy – these offers are open-ended, so you stay with them until you decide to move.

With a fixed rate, it is best to change again when your current rate expires. If you don’t, your provider will switch you to a “default” rate with a variable rate, and you may see your prices increase accordingly.

Currently, energy prices in wholesale markets are skyrocketing. This is where our suppliers buy energy, and they will inevitably pass the cost on to us in due course. So it’s important to think about changing as soon as possible – although if you’re already on a fixed rate deal, be sure to avoid exit fees by delaying the change until you are within six weeks of the change. end of your current rate. .

Top 10 cheapest fixed price energy offers

Supplier

Rate

Price per year (£) *

Avro

Next Exclusive v2

942.10

E.ON Next

Simple and fluid12M

1035.53

Point of service

Just join 21 12M landline Wk28

1035.67

Green

Yawning

1048.57

E.ON Next

Fix Again 15 months v10

1049.76

Green

Arai

1052.72

Green

Andoyer

1054.90

Spark energy

Tili Select Saver – Sept 2021

1066.86

nPower

Online correction v44 June 2022

1070.28

Point of service

Just Up 21 Spring Renewal v2

1075.92

* Least expensive offers based on dual fuel fixed rates for an “average user” defined by Ofgem, paid by monthly direct debit. Note that these may not be available in all parts of the UK. Prices at 07/30/21. Source: Comparison Technologies


Top 10 cheapest variable rate energy offers

Supplier

Rate

Price per year (£) *

Green

Walnut

1005.99

Ebico Live

Ebico standard

1032.20

Outfox the market

A Green Flex 8.0

1061.55

The energy of the people

East Lothian variable

1071.05

Energy igloo

Pioneer

1078.08

Energy in orbit

5% OFF4LIFE

1081.18

Utility warehouse

Double gold

1081.25

Twenty energy

Standard variable

1085.08

Energy Package

Ebico Standard April 2021 v1

1085.14

PFP energy

Simple Clear Paperless

1085.83

* Least expensive offers based on dual fuel variable rate tariffs for an “average user” defined by Ofgem, paid by monthly direct debit. Note that these may not be available in all parts of the UK. Prices at 07/30/21. Source: Comparison Technologies

Should you choose a fixed rate or a variable rate?

It depends on several things. The first is the price. When you run an energy price bid, you may see a fixed or variable rate bid arrive at the top of the table as the cheapest bid.

If it is a fixed rate, the price will be blocked for the duration of the contract, which will also be fixed (usually for 12 months). This is appealing to some people because they can budget for the coming year without having to worry about price hikes.

If it’s a variable rate, the price can go up or down at any time, and it’s an open-ended contract. So you can start lower than with a fixed rate, but you might see prices increase over the next few months.

This could be the result of increases in wholesale energy prices, which would be passed on to you. And then there’s the potential for a hike in the energy price cap in October. More on that below.

Prices could drop on a floating rate deal – but given current energy market conditions, most commentators believe an increase is more likely.

When is the best time to change supplier?

The short answer is, there’s no bad time to switch energy providers if you can save money by doing so.

If you haven’t changed, or haven’t in a few years, chances are you are currently on a variable rate “default” rate. It’s almost certain that you’ll be able to find a cheaper alternative – likely a fixed rate deal that locks in the price for 12 months, protecting you from any hikes during that time.

This is important now because, if you change this month, you will protect yourself from any increase in the energy price cap, which applies to variable tariffs. Changes to the cap will be announced in August to take effect October 1.

How does the price cap affect my energy bills?

The energy price cap is set by Ofgem, the market regulator. It places a cap on the amount you can be charged per unit of energy you use if you are on a variable rate tariff.

For average energy users, the current cap is £ 1,138 per year (it is due to be updated in October, with experts saying it will increase to £ 150). If you’ve taken out a floating rate deal, it is worth doing an energy quote to see if you can get a fixed rate deal for less than the cap price. You would then be immune to any price increase for 12 or 24 months.

What are the exit fees?

Some fixed rate offers include an exit charge, typically £ 25 or £ 30 each for gas and electricity. They are there to dissuade you from switching to another offer during the initial term of the contract.

Two things to note. First of all, if the annual savings you can make by switching is more than the fees charged to you, it may be a good idea to go ahead anyway.

And second, you won’t be charged an exit fee once you arrive within six weeks of your contract end date. This gives you enough time to initiate another change and move on to your next transaction without penalty.

Can I change energy if I am in debt to my current supplier?

Yes, as long as you haven’t been in debt for more than 28 days and have a credit meter, where you pay your bills in arrears.

So if you are paying by monthly direct debit, you should be clear about changing as your regular payments should keep you in the dark. Anything you owe and accumulate over the past 28 days will be added to your final bill. But if you have accumulated debts that are more than 28 days old, you will need to clear them before you can change.

With a prepaid meter you can switch as long as you owe no more than £ 500 for electricity and £ 500 for gas. If you owe less than these amounts, the debt can be transferred to your new vendor under what is called the Debt Assignment Protocol. So you will still have to write off the debt by paying off your new energy business.

Can I change supplier if I am renting?

If your name is on the bill, yes, but your best bet is to tell your landlord as a courtesy.

If your landlord pays and the cost is part of your rent, you can’t change yourself, but ask them to change if you think there are savings to be made.

How long does it take to change supplier?

Finding an offer you want to switch to shouldn’t take more than 10 minutes using our comparison service (have a recent invoice handy if possible). Once you have selected your new supplier, they will take over the administrator. You will just need to send the final invoice readings when prompted. You should be on your new offer within 21 days, including your 14 day cooling off period, during which you can opt out of the Switch without penalty.


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