We receive a small fee from trusted installers when you request a quote through our site. This helps us keep our content independent, well-researched and up to date – Learn more
- Several energy firms have withdrawn fixed tariff deals
- The wholesale price of UK gas has increased by 37% since fighting began
- About 50% of your bill is set by the wholesale price of gas
- Energy price cap could jump 10%
Several energy firms have pulled fixed tariffs from the market due to the US-Iran conflict, with just 17 remaining on the market, according to Sky News.
The best deal reportedly left is £1,640 – from Outfox Energy – for a dual-fuel fixed tariff, which is £131 more expensive than the cheapest available option this time last week.
That means the cheapest fixed tariff currently available on the market is only £1 cheaper than the upcoming April Energy Price Cap, effectively wiping out any savings billpayers would otherwise have had from Rachel Reeves’ scrapping of the ECO scheme.
Fixed tariffs are deals that lock in a per-unit cost of electricity and gas and standing charges for a set period, protecting customers from price hikes. The set period is usually 12 or 24 months.
On top of that, Cornwall Insight have also predicted that the Energy Price Cap will increase by 10% when it changes again in July, rising to £1,801. That would be the highest its been since April 2025, when it stood at £1,849.
Why have energy prices increased?
Energy prices are increasing because of the huge shocks to the wholesale gas market caused by the US-Iran conflict, which began on 28 February. The conflict has closed the vital Strait of Hormuz, through which 20% of the world’s oil passes, and crippled international shipping.
The price of UK Natural Gas has increased by 37.2% since the start of fighting, accurate at the time of writing. On Monday prices rose by as much as 70%.
This is important because the UK is exceptionally vulnerable to the wholesale price of gas. As much 50% of the average dual-fuel bill in the UK is driven by the price of the wholesale price of gas.
Should you fix now?
Martin Lewis, founder and chair, Money Saving Expert has warned households to “get off” the Energy Price Cap if you can due to wholesale prices spiking, a prime driver of UK electricity prices.
He said that those who choose to lock in to a fixed rate now will evidently be reduced on 1 April because the government is changing the way the underlying way energy bills work and moving some policy costs to general taxation.
“This reduces the electricity and gas unit rates even for those already on fixes. So even if you fix now, the amount you pay will drop by 7% to 9% on typical usage on 1 April,” he said.
Lewis added that fixes are available on most prepayment methods, except prepay. Those on smart prepay can look at the EDF Simply Tracker tariff, which is effectively a Price Cap tariff with £100 lower standing charges.
“With deals being pulled all over the place, this is a reminder that this is about getting a cheap fix, not any fix. When you do a comparison, be careful to ensure you’re moving to something materially cheaper than the Price Cap from day one,” he said.
It’s also worth noting that things are changing rapidly, Lewis continued, reporting the risk averse move is to fix now rather than staying on the Price Cap. But, he warned that if things settle, there’s a change fixes may get cheaper again.
“There is no way to know what’ll happen, as it depends on the Middle East conflict,” he said. “So, getting a cheap fix for safety looks a good move now, even if it in hindsight it may not turn out to be.”
