E.on Next becomes first big-name supplier to launch fixed deal available to all costing less than the Energy Price Cap – should you switch?

This 12-month fixed tariff has arrived as more and more suppliers are launching fixed deals, with an open-market tariff below the Price Cap also being offered by smaller provider So Energy (1% lower). Meanwhile, British Gas, EDF, Shell Energy and Utility Warehouse all have open-market deals above the Price Cap.

Others, including Octopus and Ovo, are also offering fixed deals, though only for existing customers. You can, however, switch to their standard variable tariffs to access the fixed deals.

However, switching right now is complex, so for a full rundown of your options, see our Stick, switch or fix your energy tariff? guide.

E.on Next's deal is available to both new and existing customers

Here are the key details of the deal:

• Tariff: E.on Next 'Next Fixed 12m v2', available as dual-fuel, electricity-only, or on Economy 7.

• Price: On average 2% cheaper than the current Energy Price Cap – so for someone on typical use it's £2,040 a year compared to the £2,074 a year Price Cap, though of course your actual bill and rate depends on use and region.

• Early exit fees: £150 for dual-fuel or £75 for electricity-only.

• Who can get it: Available to new and existing E.on Next customers directly through its website. You must pay by direct debit though.

E.on Next's tariff is £34 a year cheaper than the current Price Cap

If you're on a standard tariff, the rates you pay are governed by the Energy Price Cap. This is set by the energy regulator Ofgem and changes every three months, in January, April, July and October. The current Price Cap rates cover the period from 1 July to 30 September 2023.

For a typical user, the E.on Next fixed tariff is £34 a year cheaper than the current Price Cap. However, how much cheaper it is for you depends on your usage and where you live, so if you want to switch, make sure to get a quote and compare it against how much you currently pay.

As an example, you can see the unit rates and standing charges for the E.on Next tariff against the current Price Cap below for the Midlands region.

But the Energy Price Cap will fall from 1 October

When considering if it's worth switching to a fixed deal, you need to look at what is expected to happen over the course of the next year, as a fix that looks decent now could end up costing you more if energy prices drop.

We know that the Energy Price Cap will fall by 7% from Sunday 1 October, though it's predicted to rise again slightly from 1 January 2024.

The table below details how E.on Next's tariff compares to the Energy Price Cap both now and in future based on typical use.

If you value price certainty E.on Next's tariff could be worth considering – but it's not a slam dunk

Our current rule of thumb is that, based on current future predictions of energy prices, if any firm offers a fix for about 5% under the July Price Cap, that tariff looks a decent deal. If it's the same or just under the Cap, it may still be worth considering if you strongly value price certainty. Of course, current predictions are just predictions, so we can't promise to be right with hindsight.

For full info, see our Should you fix? guide. If you're a dual-fuel energy user, you can also enter your usage and region (or plug in your current rates for more accuracy if you know them), plus the new rates you've been offered, into our Should you fix? calculator, and we'll let you know the percentage difference, and our best guess on whether it's worth considering based on our rule of thumb.

What you should be doing now to help yourself

Other than fixing, there are three areas to focus on...

• Try to cut your energy usage. There are lots of ways to easily reduce what you use. Try our interactive energy-saving tool, where you can click around a virtual house to find out how much appliances cost to run and how to cut back. Also, see our Energy saving tips guide, the Energy mythbusters guide for less clear-cut issues, and our Heat the human guide.

• Check you're paying the right amount. You can use our Energy Price Cap calculator to see how much you'll pay from Sunday 1 October.

• Have you got all the help you qualify for? If you can't pay, check our Struggling to pay – energy help guide, which has info on all the cost of living support schemes.