Best fixed rate and variable rate energy deals June 2021

·7-min read
 (PA Archive)
(PA Archive)

Here we are in blazing June - and here’s hoping the weather stays fine. But whatever’s happening to your thermometer, it’s always a good time to think about switching energy provider so that you can start paying less for your gas and electricity and take some heat off your bank account.

Related: Switch & Save Using Our Energy Comparison Service

We’ve listed the cheapest deals currently on the market below. These are dual fuel tariffs, where you get your gas and electricity from the same supplier, and the prices are for average households for a year.

You can run a quotation on our energy page to get a list of deals for your particular home situation. You just need to tell us a bit about where you live and how much energy you use - all the information we need will be on a recent bill. The whole process takes about 5 - 10 minutes, and the switch itself will be complete in around 21 days.

There are two main types of deal. Fixed rate tariffs lock in the price per unit of energy for a stated period - usually 12 months. That protects you from any upward increase in energy prices for the duration of the tariff, although you wouldn’t see any benefit if prices dropped.

Variable rate tariffs can rise or fall depending on the wholesale price of energy - these deals are open-ended, so you stay on them until you decide to move.

With a fixed rate, it’s best to switch again as your existing tariff comes to an end. If you don’t, your provider will move you onto a ‘default’ tariff with a variable rate, and you could see your prices shoot up as a result.

Top 10 cheapest fixed rate energy deals

Supplier

Tariff

Price per annum (£)*

People’s Energy

East Lothian Fixed March

909.92

Utility Point

Just Up 21 Wk 06 v2

920.01

Utility Point

Just Up 21 Wk 10 v2

937.47

EON Next

Next Exclusive

942.10

Utility Point

Just Up 21 Wk 06 v7

953.71

Utility Point

Just Up 21 Exc 12m Fix

955.01

Utility Point

Pearl

957.20

EDF

Better Together May 22

960.00

EDF

More Together May 22

960.00

Utility Point

Just Join Up NGH 12m Fix

968.95

*Cheapest deals based on dual fuel fixed rate tariffs for an Ofgem-defined ‘medium user’, paying by monthly direct debit. Note, these may not be available in every region of the UK. Prices as at 24/05/21. Source: ComparisonTech

Top 10 cheapest variable rate energy deals

Supplier

Tariff

Price per annum (£)*

PFP Energy

Green Variable S2 Paperless

844.60

Neo

NEO 4.1

858.60

PFP Energy

Green Variable Paper Billing

884.60

Outfox the Market

Spring 21 Variable

908.49

Neo

NEO 4.0

925.35

GOTO

Standard Variable

932.27

Green

Linden

936.69

Igloo

Pioneer

966.74

London Power

My Home New London Flex Plan

966.75

Outfox the Market

One Green Flex 6.0

973.94

*Cheapest deals based on dual fuel variable rate tariffs for an Ofgem-defined ‘medium user’, paying by monthly direct debit. Note, these may not be available in every region of the UK. Prices at 24/05/21. Source: ComparisonTech

Should you choose a fixed rate or variable rate tariff?

That depends on a few things. First is price. When you run an energy price quotation, you may see a fixed or variable rate deal come top of the table as the cheapest deal.

If it’s a fixed rate, the price will be locked in for the term of the contract, which will also be fixed (usually for 12 months). That’s attractive to some people, because they can budget for the year ahead without having to worry about price hikes.

If it’s a variable rate, the price can go up or down at any point, and it’s an open-ended contract. So you may start off lower than with a fixed rate, but you could see prices edge up over the coming months.

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

Prices could reduce on a variable rate deal - but given current energy market conditions, most commentators think an increase is more likely.

When is the best time to switch suppliers?

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

If you’ve never switched or haven’t done so for a couple of years, chances are you’re on a variable rate ‘default’ tariff at the moment. It’s almost certain you’ll be able to find a cheaper alternative - probably a fixed rate deal which locks in the price for 12 months, protecting you from any hikes during that term.

This is important now because, if you switch this month, you will shield 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 1 October.

What effect does the price cap have on my energy bills?

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

For medium energy users, the current cap is £1,138 a year (it’s to be updated in October, with experts saying it will rise by up to £100). If you are on a variable rate deal, it’s well worth running an energy quotation to see if you can get a fixed rate deal for less than the cap. You’d then be immune to any price increases for 12 or 24 months.

Related: Switch & Save Using Our Energy Comparison Service

What are exit fees?

Some fixed rate deals have exit fees built in, usually at £25 or £30 each for gas and electricity. They’re there to deter you from switching to another deal during the original term of the contract.

Two things to note. First, if the annual saving you can achieve from switching is more than what you’ve be charged in fees, it can make sense to go ahead anyway.

And second - you won’t be charged any exit fees once you get to within six weeks of your contract’s end date. This gives you sufficient time to initiate another switch and move to you next deal without penalty.

Can I switch energy if I’m in debt to my current supplier?

Yes, provided you haven’t had the debt for more than 28 days (if you have a credit meter, where you settle your bills in arrears).

So if you pay by monthly direct debit, you should be clear to switch because your regular payments should keep you in the black. Anything you owe that’s built up in the last 28 days will be added to your final bill. But if you’ve accumulated debt that’s more than 28 days old, you’ll need to clear it before you can switch.

With a prepayment meter, you can switch provided you don’t owe more than £500 for electricity and £500 for gas. If you owe less than these amounts, the debt can be transferred to your new supplier under what’s known as the Debt Assignment Protocol. So you’ll still need to clear the debt by paying your new energy firm.

Can I switch suppliers if I am renting?

If you’re name is on the bill, yes - but probably best to tell your landlord as a courtesy.

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

How long does it take to switch suppliers?

Finding a deal you want to switch to should take no more than 10 minutes using our comparison service (have a recent bill to hand if possible). Once you select your new supplier, they’ll take of the admin. You’ll just need to send final bill readings when asked. You should be on your new deal within 21 days, including your 14-day cooling off period, during which you can pull out of the switch without penalty.

Related: Switch & Save Using Our Energy Comparison Service

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