Fix your energy tariff now, households urged as bills could spike again on fresh Middle East conflictSee more This is Money on Google - save us as a Preferred SourceBy JANE DENTON, MONEY REPORTER Updated: 12:47 BST, 14 July 2026
Products featured in this article are independently selected by This is Money's specialist journalists. If you open an account using links which have an asterisk, This is Money will earn an affiliate commission. We do not allow this to affect our editorial independence.Households are being urged to lock in a fixed-rate energy deal as further bill hikes are anticipated due to fresh conflict between the US and Iran. With the war escalating again, wholesale energy prices are going up. According to comparison website Uswitch, wholesale energy prices have risen by 15 per cent in the past week.Wholesale prices are the costs that energy suppliers pay to buy natural gas and heating oil, with any rise usually passed on to customers. Energy firm EDF has also warned that Ofgem's price cap, which governs energy bills for those who are not in a fixed contract, now looks set to rise by more than previously expected in October. At the moment, Cornwall Insight says it is set to fall slightly from £1,862 to £1,849 per year based on a household with average usage. By fixing their tariff for a year or more now, customers could lock in a price that is lower than the future price cap. > Find the best fixed energy deal for you with Uswitch and This is Money* Consider switching: Lock-in a fresh fixed-rate deal to beat further energy price cap hikesWhat are the cheapest energy deals? Uswitch said the cheapest fixed energy tariff on the market was a 15-month deal from Outfox Energy at £1,424, which is £239 below the current price cap. Energy firms charge customers a rate per unit of energy used, and the £1,424 figure is based on typical usage. If you use more power, you will pay more. The second cheapest fixed-rate deal currently available is a 15-month deal from Fuse Energy, at £1,453 which is £210 below the price cap. The third cheapest fixed-rate energy deal is a 13-month deal from Outfox Energy, at £1,471 which is £192 lower than the energy price cap.Exit fees usually apply if you leave a fixed deal early, so check these before signing up. Ben Gallizzi, energy expert at Uswitch, said: 'With wholesale markets swinging on the back of the conflict in the Middle East, suppliers are already recalculating what October could look like – and the early signs point to another increase.'Our advice to households is simple: don't wait until you put the heating on to find out what it's going to cost you. If you're still on a standard variable tariff, you're exposed to a market that's currently moving in the wrong direction.''Choosing a fixed deal now means you know exactly what you'll pay through the coldest months. Run a quick comparison today, as the best rates on the market are changing quickly.'Ofgem, the energy regulator, changes the energy price cap every three months to reflect global changes in the wholesale costs of energy, and other factors. On 1 July the quarterly cap on gas and electricity charges increased by 13 per cent to the equivalent of £1,862 a year for an average household. This figure is based on the average energy unit rate and standing charge for households who pay by direct debit in England, Scotland and Wales. Households on standard variable tariffs who have not switched deals are already paying more for their energy bills than they need to, Uswitch said. If households switch to a fixed-rate deal, they will be protected from what happens to the next energy price cap in October. It is possible that the price cap could go down in October if the situation in the Middle East changes, but it is unlikely that the fall would be dramatic. The October figure is announced on 26 August.
