Fixed vs Variable Energy Tariffs — should you lock in or stay flexible?
Choosing an energy tariff often feels like a gamble.
This page compares fixed and variable energy tariffs side by side, focusing on price certainty, risk, flexibility, and common reasons people hesitate to switch.
No switching links. No signup. Just the trade-offs.
The short answer
A fixed tariff is usually better if:
you want price certainty
budgeting predictability matters
you prefer to avoid sudden price changes
you’re comfortable committing for a set period
A variable tariff is usually better if:
flexibility matters more than certainty
you expect prices to fall
you don’t want exit fees
you’re unsure how long you’ll stay with a supplier
Many households move between the two depending on circumstances.
Fixed vs variable tariffs — side by side
| Category | Fixed Tariff | Variable Tariff |
|---|---|---|
| Price certainty | High | Low |
| Exposure to price rises | Limited | Full |
| Exposure to price falls | Limited | Full |
| Exit fees | Often apply | Rare |
| Contract length | Set period (e.g. 12–24 months) | No fixed term |
| Flexibility | Lower | Higher |
| Ease of switching | Lower | Higher |
| Works best when | Stability is the priority | Flexibility is the priority |
Prices and terms vary by supplier and market conditions.
How pricing risk actually works
With a fixed tariff, you agree to a price for a set period.
This protects you from increases but can leave you paying more if prices fall.
With a variable tariff, prices can change at any time.
This allows you to benefit from falls but exposes you to sudden rises.
The choice is less about “saving money” and more about how much uncertainty you’re comfortable with.
Exit fees and flexibility
Fixed tariffs often include exit fees, which can make switching costly before the contract ends.
Variable tariffs usually:
have no exit fees
allow you to switch at short notice
For some households, flexibility is worth more than potential savings.
Why many households hesitate to choose
Common reasons people feel stuck include:
uncertainty about future prices
fear of locking in at the wrong time
confusing tariff terms
frequent market changes
There’s rarely a perfect moment to choose.
So which tariff is “better”?
Neither option is always better.
Fixed tariffs suit people who value certainty and stability
Variable tariffs suit people who value flexibility and responsiveness
Understanding your own tolerance for risk is more useful than trying to predict prices.