Energy prices are rising, should I fix my tariff?

With the January 2026 price cap announcement from Ofgem, you’ve probably heard that energy prices are rising to £1,758 for an average, dual-fuel, Direct Debit bill paying household each year (learn more about Ofgem’s changes to how an average household annual bill is calculated). Fixed tariffs are back on the menu at E.ON Next so, are you better off fixing your tariff now or staying on the standard variable tariff (SVT)? We’ve put together a helpful guide to support you in making the right decision for your home.

Switch to Next Pledge.

With our Next Pledge tariff, you'll get energy prices guaranteed to stay below the Ofgem price cap - saving you £50 based on average annual consumption. T&Cs apply.

Unlike other fixed tariffs, you'll also benefit if energy prices drop.

• Guaranteed savings vs the price cap.
• Automatically benefitting if energy prices drop.
• No exit fees.

Switch to Next Pledge

What is included with a fixed tariff.

• No unexpected price increases. By fixing your tariff you are protected from fluctuations in unit prices, meaning your energy price cannot increase or decrease during the length of your contract.

• Budget with confidence. Know exactly what you are paying for each unit of energy you use, allowing you to budget for your bills with confidence.

What is not included with a fixed tariff.

• Flexibility. Whilst a fixed tariff offers more security, it comes at the cost of flexibility. Fixed tariffs have a set contract duration (usually one or two years). If you want to switch tariffs during this time you may be subject to exit fees.

• Prices may get lower. The flip side of being on a tariff that doesn’t change with the price cap, is that if prices get lower you will be fixed at a higher energy price until the end of your contract.

Our Next Pledge tariff.

Did you know that we have a tariff with prices that stay below the price cap? Our Next Pledge Tariff costs less per unit than the price cap unit rate, whether it goes up or down. With our Next Pledge tariff you’ll get energy prices guaranteed to stay below the Ofgem price cap - saving you £50 based on average annual consumption. T&Cs apply1. Get a quote today.

Understanding your bill - Energy Bites

Your bill has arrived, but you're unsure what it all means? We’ve got you with our Energy Bites series! Our Energy Specialists are on hand to help you through each step of the process.

Is now the best time to fix my energy tariff?

Unfortunately, like you, we cannot see into the future - which means you can never be certain when the best time is to fix your energy tariff. We recommend instead weighing how much you value the certainty of a fixed price with the affordability of your fixed tariff quote.

If you feel that you can comfortably afford the energy price you are quoted for the next 1 to 2 years, then you may enjoy the security that comes with a fixed tariff. You will be protected from price increases, and can feel confident that your bills are within your budget for the duration of your contract. No more stress around price cap announcements, instead sit back and relax.

However, if you would prefer to wait and see how the market develops, you may be able to get a better quote in the future. Just be aware that this is not guaranteed, and you also risk your energy prices increasing. 

Ultimately, the decision to get a fixed tariff, and when, is up to you. There really is no right answer. So unless you stumble across a time traveller from the future, be wary of anyone telling you otherwise. (And let’s be honest, if you did, you’d be asking for lottery numbers not fixed tariff prices. We know we would!).

If you’re looking to join E.ON Next it’s quick and easy to get a quote. Already a customer? Login to your account dashboard to see what tariffs are available to you.

Fixed tariff not what you're looking for? You may want to consider Next Pledge, which guarantees your prices will always be lower than Ofgem’s price cap₂ (for an average dual fuel customer). Find out more about Next Pledge via your online account.

What about the Energy Price Guarantee (EPG)?

Since July 2023 you have no longer received government support from the Energy Price Guarantee (EPG), which kept the maximum energy price at £2,500 a year for an average household. No longer receiving this government support will not increase the cost of your bills. This is because the price cap is already below the current £3,000 (From 1 July 2023) threshold, so you are already paying less than you were under the EPG. This government scheme ended 31 March 2024.

Struggling to pay.

If you are struggling to pay your bills we are here to support you. From free debt advice from our partner StepChange, to grants from the E.ON Next Energy Fund that will help you pay your energy bills or replace essential appliances. Find out more about the support on offer and see if you are eligible for help with your energy bills.

• 1. Next Pledge is a 12-month fixed term tracker tariff with variable rates that are always lower in comparison to the Ofgem Price Cap, that applies to standard variable tariffs. £50 saving is applied as a reduction on unit rates split across both electricity and gas (£25 saving per fuel) based on Ofgem average dual fuel customer. Actual savings depend on usage. Payment by Direct Debit required. There are no exit fees with this tariff.