My fixed energy tariff is ending, what should I do?

Your fixed energy tariff is coming to an end soon, which means you've got a decision to make: should you stick with your existing supplier and renew, or explore other options? It's a good chance to make sure you're on a tariff that works best for you.

You can explore new fixed deals as they may offer savings compared to your supplier's standard variable tariff, which you'll likely be moved onto if you take no action.

Understanding your options when your fixed tariff ends.

When your fixed tariff expires, you'll usually be moved to your supplier's standard variable tariff (SVT). SVTs can be more expensive and their rates can change.

Let’s take a look at your options:

Staying with your current supplier.

Renewing your tariff with your current energy supplier can be a straightforward way to continue your energy plan. About a month before your current deal ends, your provider will typically contact you with details of available renewal tariffs, giving you the chance to see what’s on offer.

Suppliers offer a mix of options including both fixed tariffs and variable tariffs. Fixed tariffs lock in your energy prices for the contract's duration, providing stability for budgeting. Variable tariffs, however, go up and down with the market, meaning prices can change.

Renewing avoids the hassle of switching suppliers and keeps things simple, especially if you're happy with your current service. It’s always a good idea to compare available deals against their SVT and other market options to ensure you're getting a competitive rate.

If you're with us, renewing is designed to be a smooth process. We'll send you an email or letter outlining your renewal options, making it easy to see what's available. If you'd like to chat, contact us and our friendly team will be able to walk you through everything. All the renewal information will also be accessible through your online account.

Switching to a new energy supplier.

Thinking of a fresh start? Switching energy suppliers can open up new possibilities. You might find a better deal, a company with top-notch customer service, or even renewable energy options, such as our Next Gust tariff, powered by the world’s largest offshore windfarm. When you're looking around, keep an eye on the price, how long the contract lasts, if there are any exit fees, what other customers say, and their green credentials. Ofgem approved price comparison sites are your friend here – they make it easy to see all your options in one place, so you can pick what's right for you.

Important information about switching: You'll typically receive notification from your supplier before your fixed plan ends, giving you time to find a new deal. Under Ofgem regulations, you usually won't have to pay any exit fees if you switch within the 49 days before your current plan ends.

Switching to a new supplier can take around five working days, and many suppliers adhere to the Energy Switch Guarantee, which includes a cooling-off period. Once your current supplier is aware of your switch, they shouldn't automatically move you to a more expensive tariff.

How to compare energy tariffs effectively.

Navigating the world of energy tariffs can feel overwhelming, but with the right approach, you can confidently identify a deal that suits your needs and budget. The key lies in understanding how to effectively compare the options available to you. 

Understanding tariff types and key terms.

When your fixed energy deal ends, you'll need to decide on a new tariff. Understanding the different types available and the key terms involved will help you make an informed choice.

Fixed tariffs: These tariffs offer a price promise, meaning the unit rates you pay for your electricity and gas will remain the same for the entire length of your contract. This can be useful for budgeting as you'll have a clear idea of your energy costs per unit.

Variable tariffs: With variable tariffs, the unit rates can fluctuate depending on changes in the wholesale energy market. While this means you could potentially see your prices decrease if the market price falls, it also carries the risk of your prices going up.

Standard variable tariffs (SVTs): If you don't actively choose a new tariff when your fixed deal expires, you'll likely be automatically moved onto your supplier's Standard Variable Tariff. It's important to be aware that SVTs are generally the default tariff and their prices can change with the market. Often, actively choosing a new fixed or variable tariff can lead to more competitive rates.

Tracker tariffs: These tariffs directly follow the price of wholesale energy markets. This means that the unit rates you pay for your electricity and gas will change in line with these market fluctuations. While this offers the potential for your energy costs to decrease significantly when wholesale prices fall, it also means your bills could increase substantially if market prices rise. Tracker tariffs often have a closer link to real-time energy costs than other variable tariffs. Our Next Pledge tariff guarantees energy prices stay below the price cap. 

Time of use tariffs: These tariffs offer different unit rates for electricity depending on the time of day you use it. Typically, electricity will be cheaper during off-peak hours (such as overnight) and more expensive during peak demand times (like early evenings). These tariffs can be particularly beneficial if you can shift your energy usage to take advantage of the lower off-peak rates. A tariff like Next Drive provides lower rates for charging your car during specific hours, and Next Pumped offers cheaper electricity at off-peak hours if you have a heat pump installed. 

Prepayment tariffs: These tariffs require you to pay for your energy before you use it. This is done by topping up a meter using a key or card. It's worth noting that prepayment tariffs may have different unit rates or associated costs.

Key terms explained:

• Unit rates: This is the cost you pay for each unit of energy you use, measured in kilowatt-hours (kWh).

• Standing charges: This is a fixed daily cost that you pay regardless of how much energy you use.

• Exit fees: These are charges that you might have to pay if you decide to leave your contract before the agreed end date. It's important to check if your tariff has exit fees and under what circumstances they apply. When comparing tariffs, you might find options, including some fixed deals, that do not have early exit fees, offering greater flexibility if your circumstances change or better deals become available.

• Contract length: This refers to the duration of your energy tariff. Fixed tariffs will have a specific contract length.

Example:

Imagine you are on a fixed tariff with a unit rate of 20p per kWh and a standing charge of 30p per day. If you use 10 kWh of energy in a day, the cost would be (10 kWh x £0.20) + £0.30 = £2.30. If you were to move to a variable tariff, that 20p unit rate could either increase or decrease depending on market conditions. And if you decided to end your fixed contract early and there was a £30 exit fee, you would need to pay that amount.

Understanding these tariff types and the meaning of these key terms is the first step in making an informed decision about your energy supply when your current fixed deal ends.

Find more terms in our energy jargon buster.

Using energy comparison websites.

Comparison websites are a simple start-point for finding energy deals. First off, head to a reputable site – Ofgem has a list of approved ones. You'll need to enter your postcode and some details about your energy usage. Your latest bill is useful here, as it'll give you accurate consumption figures.

When you're comparing, make sure you're looking at like-for-like tariffs. A fixed-rate deal should be compared with other fixed-rate deals, and the same goes for variable tariffs. Pay attention to the length of the contract and any exit fees, too.

For the most accurate comparison, input your actual energy consumption data, not just an estimate. Comparison sites will often let you input kilowatt-hours (kWh) from your bills. Be aware that when your fixed deal is ending, the "personal projection" you see on comparison sites might be a blend of your remaining fixed rate and the rates of the standard variable tariff you'll be rolled onto if you do nothing.

While these sites are super handy, they don’t show every single tariff available to you. Some suppliers or exclusive deals might not be listed. So, it's worth checking directly with each energy company you’re considering. And remember, these sites are a guide, not a guarantee. Always double-check the details with the supplier before signing up.

Making the best decision for your needs.

Choosing the right energy tariff doesn't have to be a headache. It's really about figuring out what works best for you. First off, think about what's most important – is it keeping costs down, having the flexibility to switch, or going green?

Always, always compare tariffs. Don't just take the first offer you see. Get to grips with the contract terms, too. Those unit rates, standing charges, and exit fees can make a big difference.

To make it easy, here's a quick checklist:

• Check your current energy use: Take a look at your latest bill.

• Compare like-for-like tariffs: Fixed with fixed, variable with variable.

• Look at the contract length and exit fees: Know what you're signing up for.

• Consider green energy options: If sustainability matters to you.

• Read customer reviews: See what others say about the supplier.

A common pitfall is just letting your fixed tariff roll onto the standard variable tariff without checking. This is often not the cheapest option, so it's generally advisable to actively choose a new tariff, even if it's another fixed deal. Another is not reading the small print. Always double-check the details before you commit. And don't be afraid to ask questions. We're here to help.