A fixed energy tariff locks in your unit rate and standing charge for a set period, typically between 12 and 18 months, giving you price certainty. This means the cost per unit of electricity and gas, and your daily standing charge, will not change during your contract term, regardless of market fluctuations. This predictability can be a powerful tool for managing your household budget and gaining control over your energy costs.
Understanding how a fixed energy tariff works can help you manage your household budget effectively. Fuse Energy offers clear pricing and smart tools to help you take control of your energy costs. Click here to see how easy it is to switch.
What defines a fixed tariff?
A fixed energy tariff is a contract with your energy supplier where the price you pay per unit of energy (kilowatt-hour, or kWh) and the daily standing charge remain constant for a specific duration. This differs fundamentally from variable tariffs, where rates can change quarterly in line with the energy price cap1. Fixed tariffs are designed to offer stability, shielding you from sudden price increases in the wholesale energy market.
How fixed tariffs operate
When you opt for a fixed tariff, your supplier agrees to provide energy at a predetermined unit rate and standing charge for the entire contract length, usually between 12 and 18 months. While your rates are fixed, your total energy bill will still vary based on how much energy you use. These tariffs typically include exit fees if you decide to leave the contract early, outside specific windows.
Budget predictability and stability
The primary advantage of a fixed energy tariff is the predictability it brings to your household budget. Knowing that your unit rates and standing charges will not change for the duration of your contract allows for more accurate financial planning, removing the anxiety of fluctuating energy costs.
Protection from price rises
Fixed tariffs act as a buffer against increases in the wholesale energy market. For instance, the Ofgem energy price cap for variable tariffs rose by 13% from 1 July 2026, driven by higher wholesale gas prices. Customers on fixed tariffs were unaffected by this increase, highlighting the protection they offer against market volatility. Since 1 April 2026, electricity bills on fixed tariffs also reflect a reduction due to the UK Government moving 75% of Renewables Obligation (RO) costs from electricity bills to general taxation.
Peace of mind
Beyond financial benefits, fixed tariffs offer significant peace of mind. You can use your energy without constantly worrying about the next price announcement or market shift. This stability empowers you to manage your household expenses with confidence, fostering a sense of control over one of your most significant outgoing costs. Understanding how different home systems impact your energy use, such as an air source heat pump, can help you make informed choices.
Missing out on price drops
While fixed tariffs protect you from price increases, they also mean you will not benefit if wholesale energy prices fall significantly. If the market experiences a sustained period of lower prices, you could end up paying more than customers on variable tariffs or newer fixed deals.
Exit fees and contract commitment
Fixed tariffs come with a contract commitment, and leaving early usually incurs exit fees. These fees are typically around £50 per fuel, though the exact amount can vary widely by supplier and tariff. However, you will not pay an exit fee if you leave within the first 14 days (a cooling-off period) or during the final 49 days of your contract. It is crucial to understand these conditions before committing.
Market outlook and timing
Before fixing your energy price, consider the broader energy market outlook. If experts widely predict a significant fall in prices, it might be worth waiting or opting for a variable tariff. Conversely, if prices are expected to rise, fixing could be a smart move.
Contract length and exit fees
Evaluate the contract length and associated exit fees. A longer contract offers extended price stability but reduces flexibility. Ensure you understand the exit fee conditions, particularly the cooling-off period and the final 49 days of the contract, when no fees apply.
Your household's energy usage
Consider your typical energy consumption patterns. If your usage is stable, a fixed tariff can offer predictable costs. If your usage fluctuates wildly, or you anticipate significant changes (e.g., moving home), factor this into your decision. Remember, if you move home and take Fuse with you to your new property, no exit fee applies. Knowing the running costs of an air source heat pump can also help you forecast your energy needs more accurately.
Clear tariffs and digital control
Fuse Energy is committed to giving you clear control over your energy budget. Our fixed tariffs align with this, removing bill surprises and fostering financial predictability. Through our intuitive app, you gain digital control over your energy management, with transparent pricing and easy access to your usage data.
24/7 human support
Choosing a fixed tariff with Fuse Energy means you are not alone. Our 24/7 human customer support is there to enhance your peace of mind, providing clarity and assistance whenever you need it. This combination of predictable pricing and dedicated support empowers you to make informed financial decisions and manage household expenses with confidence.
Fuse Energy empowers customers to make informed financial decisions and manage household expenses with confidence, reducing anxiety around energy costs. We offer clear pricing, real-time usage data, and 24/7 human customer support to help you take control of your energy. Click here to switch to Fuse Energy today and start managing your energy with confidence. You can also learn more about our mission to build a future with abundant energy here.
