Everybody needs to urgently assess their energy bills. The clock is ticking and if you don’t act soon, you’ll have missed the window to insure against price hikes.

It gives me no pleasure to say that my predictions for a big energy price hike this summer are correct. Scottish Power is doing just that – in August it’ll hike gas prices 19% and electricity by 10% - hitting 2.4 million customers. Yet make no mistake, Scottish Power almost certainly won’t be alone, it's just the first...

Energy companies are like sheep

Where one leads, the others follow. British Gas has already hinted it plans increases, and the Bank of England has said it expects an annual 15% energy rise. It would be a major shock if all the other big six didn’t follow suit.

Of course, one supplier may hold off introducing rises until October in order to gain short term advantage on the comparison sites, but it’ll probably just be a postponement of a rise, not a cancellation.

Fix NOW if you can't afford rises

A fix guarantees your rate won't rise for a set period, eg, two years and many on standard rates, will save £150 a year and get the lock-in at the cheaper price (as standard rates are so expensive).

It is possible to get online tariffs even cheaper than the cheapest fix, but these are subject to any rate hikes, and even an 8% rise (less than predicted) would mean a fix is cheaper in the long run. And while more rises aren't guaranteed, if the thought of price hikes is a nightmare, a fix effectively is an insurance policy against them.

This is all about speed. In the past, once price hikes were announced, the cheapest fixes were soon pulled and replaced with more expensive ones. Add the fact a switchover can take two months and it means if you're going to fix, speed's crucial.

Fixing Q&A

Since the price hikes hit, I’ve been swamped with questions about fixing, so let me answer them here:

Q. How do I find my cheapest fix?

It depends on where you live and usage, so just plug your details into a Consumer Focus approved comparison site and click the 'show only fixed tariffs' tab. Or to get up to £40 added cashback on top of your switch; see the special links at moneysavingexpert.com/gaselec

Q. Is Scottish Power’s new price on comparison sites?

Yes, results are now based on the POST-rise prices. Good for all but existing Scottish Power customers who should compare using Kilowatt hours used, not cost, as sites now inaccurately assume the past bill was accrued at post-rise prices, so it thinks you've used less than you have.

Q. Should I call my existing provider to fix?

No, no, no and no. This isn't about grabbing any fix; that could leave you locking-in at a high cost. It's about locking-in on the cheapest fix, so do a comparison (if your supplier is cheapest at least then you’ll know).

Q. The comparison showed me it'll cost MORE to fix?

This is common if you're already on a cheap discount tariff. Prices are predicted, though not guaranteed, to rise 10%-20%, so if the additional cost of a fix is even more than that - it's likely to be best to stay put (unless there’s yet another set of price rises afterwards). If the gap's less, balance savings now against a fix's price certainty.

Q. Should I ditch my current fix to fix again?

Past fixes are likely to be much cheaper than current ones, so generally stick with them (compare to check). Yet if you've only a short time left, the risk of waiting is today's cheapest fixes will be replaced by costlier versions, so balance the cost of waiting against the £50-£80 exit penalty.

Q. How long should I fix for?

Most fixes are eighteen months, but longer ones at higher rates exist. While over the very long term 5-20 years energy prices are likely to keep rising, market fluctuations can see prices drop over a shorter cycle. So prices could drop again in a year (or rise again).

So this is about your attitude to risk. If price surety's more important than trying to play deals for the very cheapest prices, fix long.

Q. I’m moving house what happens to my fix?

Many fixed deals can be ported to your new house, though always check. If you move to a different region, remember that different rates may apply, even on the same tariff. For example someone moving from Glasgow to London, should do a comparison using a London postcode rather than their Scottish one to see what will be the best deal at their new address.

Q. I’ve a prepayment meter - can I get a fix?

Sadly not, as there’s far less competition, which is out of order in my view. If possible see if you can switch to a credit meter. If not it is possible to switch prepayment providers, both Uswitch and Energyhelpline provide comparisons to see if you can save. However it may be worth waiting until the rest of the big six energy providers have announced their price moves before comparing, so there’s a level playing field when you do.