My Fixed Energy Tariff Is Ending! What Should I Do?

Fixed energy tariffs are a prevalent type of energy deal in the UK. It sets a fixed price per unit of energy until the contract concludes. They prevent the sudden rise of gas and electricity rates in the market and help you predict energy costs effortlessly. This article will describe what to do when a fixed energy tariff is near the end

What happens when your fixed rate tariff ends?

If your fixed-rate energy tariff ends without switching, it will automatically go into the standard variable tariff or SVT. This one is the most expensive type of energy tariff the energy suppliers offer. The tariff has no fixed price per unit; instead, it relies on the market. The price of this tariff can increase at times. It can raise your energy bill, even double it. Therefore, switching to a new deal is crucial before the current one ends.

How do you find out when the fixed-rate tariff ends?

Your energy supplier should inform you between 42 and 49 days before the tariff ends. They usually suggest alternative energy deals during this time. However, you should compare different deals carefully before choosing one. You can find the fixed rate tariff ending time in a number of ways, such as below.

Check your latest energy bill:

This one is the easiest method to use when the tariff ends. Your last energy bill copy should mention the deal ending date. If your energy provider sends the copy online, log in to your account and check your tariff name and account number, where the contract ending date must be mentioned.

Contact your energy supplier:

You can call your energy supplier to find out the deal’s ending date and other information anytime. They will inform you quickly if you do not have access to the last bill copy or online account.

Review the renewal letter:

When the energy contract reaches near to ending, your energy supplier is obliged to inform you legally. They must send you the contract renewal letter about seven weeks before ending the deal. You can find the contract ending time in this letter.

What Should You Do When the Fixed-rate Energy Tariff Ends?

When your fixed-rate energy tariff ends, the following steps must be completed immediately.

Check your end date:

You must find out the energy contract ending date first. Check your recent bill copy or call your energy supplier to confirm the last date of the deal. If the final date passes, your energy plan will automatically converted into the standard variable-rate agreement, which can be expensive.

Survey other options:

After confirming the contract ending date, you should survey different tariffs to pick a suitable option. Online tools and websites are available to simplify the comparison process. If you switch to an affordable tariff,  you will enjoy a long-term saving. Finding a money-saving energy deal is challenging nowadays. In such a case, sticking with your current deal will be wise.

Contact your present supplier:

If any specific tariff draws your attention during the survey, contact your current energy supplier to inquire about it. They will explain the pros and cons of the tariff or offer you a better deal suitable for your needs.

Switch supplier if required:

Switching will be a good option if you see a better deal from another energy provider. Switching energy suppliers is more straightforward than ever. It will not even disrupt your energy supply at all. When you decide to switch, the new supplier will manage everything, mostly within five working days.

Read More: How is it Calculated UK Business Water Bills?

What happens if you don’t switch after the tariff end date?

If you do not switch after the tariff end date, your energy plan will automatically fall under the energy provider’s standard variable tariff, capped by Ofgem. Ofgem’s energy price cap limits excessive price hikes. However, the tariff is still more expensive than fixed-rate deals. 

When your energy plan enters the SVT, you must pay the average market price. The amount can vary and increase your energy cost. Therefore, you should take switching to a new fixed-rate contract seriously before the tariff ends. 

Note that the price cap by Ofgem is designed to limit the energy price, not your bills. Your actual energy cost still depends on your energy consumption, location, and payment method. To prevent overpaying, contact your energy supplier before the final date.

What if you can’t find a cheaper energy tariff?

If you cannot find a cheaper energy tariff initially, you should begin the comparison again. Sometimes, finding a cost-effective tariff becomes extremely tough due to the following reasons:

• Your present energy deal is excellent
• The prices have increased since your last comparison

Never think you are getting the most cost-effective tariff from your current energy supplier. You should also review tariffs from other suppliers to ensure how affordable it is. When comparing tariffs, modify your energy needs that may impact the energy usage and cost. 

After gathering sufficient data, negotiate with your present energy supplier and switch if you have found a better deal. All these attempts will help you save on energy bills and overpaying caused by the Standard Variable Rate (SVR).

Frequently Asked Questions

Q. What type of energy tariff is best?

Businesses commonly consider fixed tariffs as the best energy deal. However, other types of contracts also have importance in the energy market.

Q. Can I switch energy providers before my tariff end date?

Yes, you can switch. Switching energy providers is possible if you have 49 days or less left on your contract.

Q. Can you get cheap green energy?

Yes. they are not only cheap but also environmentally friendly. Contact a green energy supplier and share your requirements so they can offer affordable tariffs.

Q. When can you switch energy suppliers?

If you have a fixed energy tariff, you can switch to an energy supplier during its renewal.

Q. What is Ofgem’s price cap?

It is an energy price barrier that no supplier can exceed. Between 1 January and 31 March 2024, the energy price cap is set at £1,928 a year for a typical household that uses gas and electricity.