Should I fix my energy prices until 2024?
Yes, we recommend fixing energy prices if you can secure a cheaper fixed deal that reduces costs in the short term but also protects you against volatile energy prices in 2024.
However, it depends on whether you are looking to fix energy prices until 2024 for a business or a home.
Businesses can currently make huge savings by securing cheaper fixed rates, but for a household, the savings may be limited until the spring. Read on to learn more.
We have many customers asking if it is best to fix business energy prices now. For businesses, we recommend comparing the latest business electricity prices and business gas prices to make an informed decision.
Use our business energy comparison service to get the best prices offered by our panel of energy suppliers.
Standard variable business energy tariffs are needlessly expensive, and most businesses can spend less by fixing their energy prices until 2024.
From 1 April 2024, domestic energy users on default tariffs will automatically benefit from a 12% fall in energy prices. Market analysts at Cornwall Insights predict that the price cap will then fall again in the second half of the year.
We only recommend fixing your home energy prices if you can find a deal that’s significantly cheaper than the upcoming price cap of £1,690 for the average UK home.
Given the limited savings currently on offer, waiting until spring for a better deal might be the best option due to two regulatory changes that are due to come into effect.
On 1 April 2024, Ofgem, will remove the Stabilisation Charge and the ban on Acquisition-only Tariffs. Both measures currently prevent suppliers from offering competitively priced fixed energy tariffs to new customers. We anticipate that this change will encourage suppliers to offer significantly more competitive fixed energy tariffs.
You can use our home energy comparison service to check the latest electricity and gas prices on offer.
Why should I fix my energy prices in 2024?
There are a few reasons to fix energy prices until 2024, from peace of mind to securing cheaper energy rates; here’s why you should fix your energy rates:
- Peace of mind
- Combat against volatile energy prices
- Be able to plan your energy spend for the next 12 months
- Some suppliers offer cheaper one-year fixed tariffs
What help is available for energy bills in 2024?
There are two key schemes to help households and businesses into 2024. These are:
Household – Energy Price Cap
The energy price cap is currently £1,928 for the average UK home until March 2024. The energy price cap limits the maximum that can be charged on a variable tariff.
From 1 April 2024 until 30 June 2024, the energy price cap will fall by £238 to £1,690.
Business – Energy Bill Discount Scheme
There is no business energy price cap; however, the Energy Bill Discount Scheme supports businesses if the wholesale rates of electricity and gas exceed:
- 30.2p/kWh for electricity; or
- 10.7p/kWh for gas
Read the complete guide to Energy Bill Discount Scheme.
Should I renew my business energy contract now?
Business energy suppliers want to retain their customers and typically offer a fixed rate renewal quote to customers approaching the end of their business energy contract.
We recommend not blindly accepting the renewal rates offered by your supplier but instead comparing them to those offered by alternative suppliers. Using our business gas comparison and business electricity comparison services, you can assess whether your renewal quote is a fair offer.