Millions of UK households could be paying more than necessary this winter by sticking with their default energy supplier. With the return of cheaper fixed energy tariffs, experts warn that many families risk missing out on savings of up to 10–12% simply because they have not reviewed their deal.
Industry data shows that while wholesale gas and electricity prices have stabilised, variable tariffs remain tied to Ofgem’s price cap — currently higher than several fixed-rate offers on the market.
Why households stay put
Many customers remain on standard variable tariffs because they assume they are protected by the price cap. In reality, the cap only limits the maximum rate a supplier can charge, not the total bill.
Shay Ramani, CEO of Free Price Compare, said:
“After the volatility of recent years, households have understandably been cautious. But staying loyal can now mean paying more. Fixed deals below the cap are back, and it’s the right time to check what’s available before winter demand pushes prices up again.”
He added that it only takes minutes to switch energy supplier and that even modest monthly savings can add up over the colder months.
Fixed tariffs returning below the price cap
Several major suppliers and independent energy firms are reintroducing competitive fixed-rate deals. These tariffs allow customers to lock in prices for 12 or 24 months, providing stability and protection against potential future increases.
According to recent industry comparisons, some fixed deals are priced between 8% and 12% below the October price cap. This could save the average dual-fuel household around £100 to £150 a year, depending on consumption.
However, uptake remains slow. Many customers are still cautious after the energy supplier collapses of 2021–22, when more than 30 firms exited the market. Analysts believe consumer confidence is gradually returning but say more awareness is needed.
The difference between fixed and variable
Fixed tariffs guarantee a set unit price for a defined term. Variable tariffs, by contrast, move up or down in line with Ofgem’s quarterly price cap reviews.
For consumers, the choice depends on risk tolerance:
- Fixed tariffs provide certainty — ideal for households wanting predictable bills.
- Variable tariffs offer flexibility but expose customers to future price rises.
Households can learn more by visiting fixed energy tariffs, which explains how these plans work and how they differ from capped deals.
Prepayment customers left behind
Those on prepayment meter tariffs face additional challenges. These customers often pay higher standing charges and have fewer fixed options available. Despite efforts by Ofgem to close the gap, prepayment users continue to face higher costs and limited choice.
Campaigners argue that all households should have fair access to fixed deals, regardless of payment method. For many low-income families, the inability to fix their tariff leaves them more vulnerable to price changes through the winter.
Why switching now matters
With colder weather approaching, household energy use is expected to rise by as much as 30%. Even small differences in tariff rates can make a big impact.
Free Price Compare advises customers to check the full cost of any new deal — including standing charges and exit fees — before switching. For most, the process is simple and managed entirely by the new supplier, with no disruption to supply.
Shay Ramani added:
“Many assume switching is complicated, but it isn’t. A few minutes spent comparing tariffs could mean paying less all winter. It’s one of the easiest ways to manage energy costs without changing how much you use.”
Market confidence improving
The re-emergence of competitive fixed tariffs is seen as a sign of stability in the energy sector. Following two years of volatility, suppliers are once again competing for customers — a positive shift for consumers who benefit from more choice and better deals.
Regulators also expect switching levels to increase through late 2025 as fixed offers become more widely available.
The bigger picture
Although prices are lower than the peaks of 2022, the cost of living crisis continues to squeeze household budgets. Locking in a cheaper tariff now could provide valuable certainty ahead of potential price adjustments in 2026.
Industry experts agree: customers who take time to compare options are far less likely to overpay. For millions of families still on default rates, reviewing tariffs before the heating season begins could be the simplest way to save this winter.