The amount you pay for your energy will depend how much you use. The prices you see quoted are based on average consumption as defined by Ofgem, the market regulator. In normal circumstances, the cheapest tariff on the market will usually be a fixed-rate, fixed-term dual fuel (gas and electricity) deal, paid monthly by direct debit. Note that it is the price per unit of energy that is fixed – the amount you pay will vary in line with your usage. With a variable rate tariff, the rate per unit can go up or down, leaving you vulnerable to price hikes. Variable rate deals are also known as ‘default’ tariffs. If you are on a fixed-term deal and do not switch at the end of the term, you will move to your supplier’s default tariff. If you haven’t switched for a few years, or ever, you’re likely to be on a default tariff. Fixed-rate tariffs tend to be cheaper than variable rate alternatives, usually by a significant margin. According to Ofgem, the cheapest dual fuel tariff in June 2019 cost £873 a year, while the average price of dual fuel variable rate tariffs from the ‘big six’ energy suppliers was £1,254 – a difference of £381.