Martin Lewis says a fixed energy tariff could be saving you money

Choosing between a variable or fixed energy tariff can be a bit of a minefield when looking to cut down on household costs.

A fixed energy tariff means that you are locked into a rate for kilowatt per hour of energy used for a designated term. While variable tariffs have a defined price for the use of energy, however, this can go up or down depending on the wholesale market, but you aren’t tied into a contract. Confusing right?

Should you go for a fixed energy tariff or a variable energy tariff?

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On the Martin Lewis Money Show Live, a viewer asked the question we’d all been wondering – should they be on a fixed or variable tariff?

‘It depends what you want,’ explained the money guru. ‘At the moment variable tariffs – those that go up and down – are the cheapest on the market.

‘The price cap is coming down from 1st October from £1,254 to £1,179, but the cheapest tariffs on the market for someone with typical use are in the £850 range – they’re variable,’ the Money Saving Expert adds.

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While variables are cheaper at the moment due to current international gas supply circumstances, you could be getting a better deal on a fixed tariff.

‘We have seen in the last week a Saudi oil fire, French nuclear plant supply issues and Russian gas pipe issues,' says Martin, who explains that because of these incidents, some wholesale prices have gone up and some of the cheapest prices have been withdrawn.

‘It is not a bad time to fix your energy price, because the mood music is going upwards,’ advises Martin.

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So, while it might seem more expensive at the moment, locking yourself into a fixed energy deal before energy costs continue to go up could be a money-savvy move.

Martin’s final advice was to get onto a comparison site to see if it is worth switching. ‘Find yourself a good deal – do not sit on a standard tariff,’ he says.

So get yourself onto Moneysupermarket.com or something similar and see if you could end up saving on a fixed tariff.

Rebecca Knight has been the Editor on the Ideal Home Website since 2025; previously, she was the Deputy Digital Editor from 2022. She has a Master's degree in magazine journalism from City, University of London and has been writing about homes and interiors for 7 years. Her expertise lies in DIY projects, home decor trends and spotting the latest high street homeware buys that are about to go viral. She bought her first home in London last year and is currently renovating it (on a budget).