How I beat the Energy Price Cap rise and kept my bills below average - others should do the same

There's more bad news for UK households after it was announced energy bills are set to rise yet again from January. Changes to Ofgem's Energy Price Cap from the new year mean typical bills will increase by £21 a year.

A small increase over the course of a year but it means bills will remain high. And that's only a typical household - those who use more will still spend more.

But there is a way to 'beat' the Energy Price Cap and keep bills lower than average. It's by switching to a fixed tariff - and it's something I decided to do before the last price cap rise in October.

READ MORE: Martin Lewis tells British Gas, Octopus, Eon, EDF and OVO customers 'simple thing to do'

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Around 80% of UK households are on variable tariffs, which mean their bills rise and fall with the changes to the price cap. But a fixed tariff keeps charges at a consistent rate for a period of time, usually a year or 18 months, providing certainty about how much you will pay each month.

My monthly bills have gone up slightly since switching to a fixed tariff but they will stay at that rate for over a year when they would have otherwise climbed much higher. Short-term pain for long-term gain. A key thing to consider when choosing a fixed is the outlook for the next year.

If average charges are set to come down by a long way, you could end up stuck paying more than you needed to because you're tied into a fixed contract and it makes little sense. While bills are projected to go up and down over the next year, there's not expected to be massive overall change, meaning those on fixed tariffs shouldn't lose out and should make savings.

Experts like Martin Lewis point out there are fixed tariffs available now at 5% cheaper than the CURRENT price cap, before it goes up again in January. So fixing now will likely be worthwhile. Another benefit of fixing is easing worries about how often you're using the heating on cold winter days, as you know how much you're going to be paying at the end of the month.

Martin explained on X: "Current predictions are the price cap will rise again on April 1 by a couple of per cent, then drop slightly in July and slightly again in October. Even then it's still expected to be slightly MORE than now.

"So over the next year it's predicted you will pay a couple of per cent more than now on average. The cheapest fixed tariffs available right now are around 5% LESS than the current price cap. Therefore the simple thing to do is lock into a fix now to save money and guarantee no future hikes."

So with bills expected to remain high for at least the next year, it could make sense to choose a fixed tariff to provide certainty for now and then reassess in a year or 18 months' time.