Following a detailed analysis of the energy market, we are urging households to re-evaluate their energy options as the cost of fixed-price deals continues to fall. While the energy price cap is set to rise slightly in January, the short-term outlook has shifted dramatically following the government’s announcement that it will scrap "green levies" from bills in April. It means that UK households could expect a reduction of around £150 per year from April, sparking a renewed price war among suppliers.
Energy Price Cap
The energy price cap, set by Ofgem, currently stands at £1,755 a year for a typical dual-fuel household. However, this is set to change in the coming weeks.
- January rise - From 1st January 2026, the energy price cap will rise by 0.2% to £1,758.
- April forecast - Previously, forecasts predicted a sharp rise in bills from April 2026. However, following the Chancellor's Autumn Budget, which announced the scrapping of the Energy Company Obligation (ECO) and the transfer of some 'Renewables Obligation' costs to general taxation, bills are now expected to fall by around £150 a year from April.
Current forecasts suggest the energy price cap could drop to around £1,664 in April. While this is welcome news, it creates a dilemma: should you wait for the drop, or fix now?
Should you fix now or wait?
While the predicted drop in the energy price cap in April is positive, the best fixed-rate deals available today are already significantly cheaper than the predicted April reduction.
By fixing now, you achieve two things:
- Immediate Savings - You save money during the high-usage winter months (January to March) when the price cap will be at £1,758.
- Long-term Value - You lock in a rate that is lower than the predicted April cap (£1,664), ensuring you continue to save even after the government's measures take effect.
For more information on whether now is the right time to fix, check out our article 'Should I fix my energy prices?'.
Fixed-price energy deals are falling
Since we last surveyed the market in November, competition among suppliers has intensified, driving fixed-rate deals down significantly in just 12 days. The most dramatic reduction has come from Ecotricity, which has slashed the cost of its one-year fixed tariff by around £75 (a drop of 4.7%) to £1,510. Other suppliers have followed suit, with Outfox the Market offering a fixed-price tariff around £30 cheaper than when we last checked in November and E.ON Next reducing prices by around £25. In addition to falling prices, we have seen an increase in the number of longer-term fixed-price deals, meaning consumers can lock in at a lower price for longer.
The best fixed-price deals compared
The number of fixed-price deals that beat the current October energy price cap is rising. Switching to one of these tariffs could save households over £200 a year compared to the current cap, while also locking in certainty against changes to the energy price cap in in 2026.
The following table highlights some of the most competitive fixed-rate deals currently available:
| Energy Tariff | Ecotricity - Eco Fixed One Year Oct 25 v1 | Outfox Energy - 12 month fixed Dual - Nov 25 12mth v 9.0 | Eon Next - 18 month - Nov 25 V20 | EDF - Simply Fix - Feb 27 V2 | Ovo Energy - 1 Year Fixed + Boiler Cover |
| Fix Duration | 12 months | 12 months | 14 Months | Fixed Until Feb 27 | 12 months |
| Smallprint | Dual-fuel tariff | Only available as a dual-fuel tariff | Dual-fuel tariff | Dual-fuel tariff | Must take boiler cover with Ovo with this tariff (Minimum cost is £200 per year but does include an annual boiler service) |
| Exit fees (payable if switching before 12 months is up) | £150 dual-fuel | £150 dual-fuel | £100 dual-fuel | £100 dual-fuel | £100 dual-fuel |
| Tariff Cost | £1,510 approx | £1,540 per year approx | £1,560 per year approx | £1,570 per year approx | £1,625 per year approx |
| Annual Saving (when compared to October Energy Price Cap £1,755 per year) | £245 approx | £215 approx | £195 approx | £185 approx | £130 approx |
| Who should switch? | Those wanting a Green tariff that undercuts the October energy price cap | Those wanting a tariff that undercuts the October energy price cap | Those wanting to know what they will be paying for the next 14 months | Those wanting a Green tariff that undercuts the October energy price cap | Those happy to purchase boiler cover and who want a tariff that undercuts the October energy price cap |
Scroll to view full table - Correct at 02.12.25 - Figures based on average usage in the South East of England (Gas = 11,500 kWh per year, Electricity = 2,700 kWh per year) Deals accurate at the time of writing and subject to change
Important considerations before you fix
Before switching, it is vital to check the small print.
- Smart meters - You may need a smart meter to access some of these deals. If you don't have one, your new supplier might request to install one.
- Green tariffs - Providers like Ecotricity often market their tariffs as "Green" to appeal to environmentally conscious consumers looking to save money while supporting renewable energy.
- Boiler cover - Some tariffs, such as the deal from Ovo Energy listed above, require you to take out boiler cover to access the rate. While this includes an annual service, it means there is an additional cost that you must factor into your total savings.
With fixed rates now falling well below both the current cap and the predicted drop in April, taking a fixed deal now offers a rare opportunity to lock in certainty and significant savings for the year ahead.
The long-term outlook for energy prices
While short-term forecasts have hinted at potential price drops, the long-term picture for energy bills has shifted following a major announcement from the energy regulator Ofgem. A £28 billion investment package has been agreed in order to upgrade the UK's energy grid, designed to strengthen the network and reduce reliance on imported gas. However, this vital infrastructure work will come at a cost to consumers, with the upgrades adding £108 to the average household energy bill by 2031. The spending includes £17.8 billion for gas networks and £10.3 billion for high-voltage electricity infrastructure, marking the biggest expansion of the grid since the 1960s.
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