If you are on a standard variable tariff, you may be wondering whether it is time to fix your energy prices.
Fixing can make sense when the deal is expected to cost less over the contract, or when the difference is small enough that you are happy to pay for greater certainty. Staying on the price cap may suit you when fixed deals are more expensive, you want to remain free to switch, or you are considering a smart tariff instead.
The important thing is not to fix simply because energy prices are in the headlines. Compare the tariff available to your household, using your own energy use, and check what you would be committing to.
When Fixing or Staying Variable Makes Sense
You should consider fixing your energy tariff when:
- the fixed deal is cheaper than your current tariff
- its estimated cost compares well with staying on the price cap
- you want to protect yourself from possible price increases
- you are comfortable with the contract length and exit fees
Staying on the price cap may make more sense when:
- the fixed deal is considerably more expensive
- you want the freedom to switch again without an exit fee
- you expect your circumstances or energy setup to change
- you could benefit from an EV, heat pump or other smart tariff
A fix is not automatically a saving. It fixes your unit rates and standing charges, not your total energy bill.
Should I Fix My Energy Tariff Before October 2026?
The energy price cap increased by 13% on 1 July 2026 and will remain at its current level until 30 September 2026. The cap for October to December is due to be announced by 26 August 2026.
There are currently fixed tariffs available below the standard variable rates set by the price cap, although the deals available will depend on your supplier, region, payment method and circumstances. This means anyone still on a price-capped tariff should at least compare the fixed deals available to them.
That does not mean every fixed tariff is good value. Check the actual rates, estimated annual cost, contract length and exit fees before switching.
This section was last updated on 16 July 2026.
Fixed tariffs and price-capped variable tariffs
A fixed tariff keeps your electricity and gas unit rates at the same level for a set period. Your daily standing charges will normally be fixed as well.
Most fixed tariffs last for 12 months, although suppliers may also offer contracts lasting 18 or 24 months.
Your total bill is not fixed. You will still pay for the amount of energy you use, so your bills can increase if you use more gas or electricity than expected.
A standard variable tariff works differently. Its rates can change, usually at the beginning of each new three-month price-cap period.
Ofgem sets the maximum amount suppliers can charge customers on default tariffs through a combination of unit rates and standing charges. Suppliers can charge less than this maximum, but many price their standard variable tariffs close to it.
The price cap is not a limit on your total bill. The more energy you use, the more you will pay.
Fixed vs variable tariffs at a glance
| Fixed tariff | Price-capped variable tariff | |
|---|---|---|
| Unit rates | Stay the same during the contract | Can change with each cap period |
| Standing charges | Stay the same during the contract | Can change with each cap period |
| Covered by the price cap | No | Yes |
| Contract length | Usually 6 to 24 months | No fixed end date |
| Exit fees | Often charged £25-50 per fuel for leaving early | No exit fee |
| Main benefit | Greater price certainty | Greater flexibility/no commitment |
| Main risk | Prices fall and your fix becomes expensive | Prices rise at a future cap review |
How to tell whether a fixed tariff is good value
The most useful comparison is not simply between a fixed tariff and today’s price cap.
A 12-month fix covers several price-cap periods. During that time, variable rates could rise or fall. You should therefore compare the fixed deal with what staying variable could cost over the same period.
Future price-cap forecasts are never guaranteed, but they can provide useful context alongside the confirmed rates.
Start with your annual energy use
Look at your latest energy bill or supplier app and find your estimated annual consumption.
It should show:
- your electricity use in kilowatt-hours
- your gas use in kilowatt-hours, if you have gas
- your current unit rates
- your daily standing charges
Using your own consumption will produce a much more useful comparison than relying on the annual figure advertised for a typical household.
Compare the estimated annual costs
The simplest option is to compare the annual cost estimates provided by your supplier or a comparison service.
Make sure both estimates are based on the same annual usage.
You can also calculate the approximate cost yourself:
Electricity cost = annual electricity use × unit rate + annual standing charges
Gas cost = annual gas use × unit rate + annual standing charges
Add the two together if you use both fuels.
Look beyond today’s price
A fixed deal that is slightly more expensive than the current price cap could still work out well if variable rates rise later in the year.
Equally, a fix that looks attractive today could become expensive if the price cap falls.
Use confirmed future price-cap rates where they are available. Treat forecasts for later periods as an estimate rather than a guarantee.
You will not be able to predict the cheapest option with certainty. The aim is to decide whether the price and protection offered by the fix are reasonable.
Include the contract terms
Before switching, check:
- how long the rates are fixed for
- whether there are separate exit fees for gas and electricity
- whether the tariff is available to new and existing customers
- whether you need to pay by Direct Debit
- whether you need a working smart meter
- whether you have to take both gas and electricity
- what happens at the end of the contract
A slightly cheaper tariff may not be the best option if it comes with a long contract and high exit fees.
When fixing your energy tariff could make sense
The fixed deal is cheaper
Fixing is easiest to justify when the estimated cost is lower than your current tariff and compares well with the likely cost of staying variable.
You can reduce what you pay now while also protecting yourself from possible increases during the fixed term.
Check that the saving is not cancelled out by higher standing charges or other conditions.
You want predictable energy rates
A fixed tariff gives you certainty over the price charged for each unit of energy.
Your monthly bills can still change with your usage, particularly between summer and winter, but the underlying rates will not increase during the contract.
This can make budgeting easier, especially if an increase in the price cap would put pressure on your household finances.
The premium for fixing is small
Sometimes a fixed tariff costs slightly more than the current variable rate.
That does not automatically make it a bad deal. You may decide that paying a little more is worthwhile in return for knowing your rates will not rise.
Think of the difference as the price of greater certainty. The larger that difference becomes, the harder the fix is to justify.
You are unlikely to need a different tariff soon
Fixing is easier to commit to when you are not expecting to move home or make a major change to how you use energy.
For example, buying an electric vehicle, installing a heat pump or adding a home battery could make a specialist tariff more suitable. High exit fees could then make it expensive to leave your fixed tariff early.
When staying on the price cap could make sense
The fixed deals are considerably more expensive
A fix may provide certainty, but that does not mean any price is worth paying.
If the estimated cost is much higher than remaining on the price cap, you would be paying a significant premium to protect yourself from a possible increase.
Consider how large an increase would be needed before the fix started to save you money.
You want to remain flexible
Standard variable tariffs usually have no fixed end date or exit fee.
You can move to another deal if a better fixed tariff becomes available, the price cap changes or your circumstances change.
This flexibility can be particularly useful when the energy market is moving quickly.
You are comfortable reviewing your tariff regularly
Staying variable does not have to mean ignoring your tariff.
You can review your options whenever Ofgem announces a new price-cap level. This allows you to compare the next confirmed rates with the fixed deals available at the time.
The trade-off is that you may have to accept higher rates if the cap rises before you switch.
You are considering a smart tariff
A standard fixed tariff and a price-capped variable tariff are not your only choices.
Depending on your home and energy use, you may benefit from:
- an overnight tariff for charging an electric vehicle
- a heat pump tariff with several cheaper periods
- a tracker tariff linked to wholesale prices
- a half-hourly time-of-use tariff
- an import and export tariff for solar panels or a home battery
These tariffs need to be compared separately because the amount you pay can depend on when you use electricity, not just how much you use.
Should you fix for one year or two?
A 12-month fix will usually provide a better balance between certainty and flexibility than a 24-month contract.
A longer fix protects your rates for more time, but it also increases the risk that you remain on an expensive deal if prices fall.
A two-year fix may still make sense when:
- its rates are particularly competitive
- you value long-term certainty
- the exit fees are reasonable
- you are unlikely to need a different tariff
Do not choose a longer contract simply because it provides more protection. Compare its rates with shorter fixes and consider whether you would still be comfortable with the deal if cheaper tariffs appeared next year.
Check the exit fees before fixing
Many fixed tariffs charge an exit fee if you leave before the end of the contract.
For a dual-fuel tariff, the supplier may charge a separate fee for electricity and gas. This means an advertised exit fee of £75 could potentially become £150 if it applies to each fuel.
You can normally switch without paying an exit fee during the final 49 days of a fixed contract. Your supplier should contact you before the tariff ends and explain your options.
If you do nothing, you will usually be moved onto your supplier’s standard variable tariff rather than another fixed contract.
Set a reminder to compare your options before the end date.
A simple way to decide whether to fix
Before fixing, work through these five questions:
- Is the fix cheaper than my current tariff?
Compare the estimated annual costs using your own energy use. - How does it compare with staying variable?
Consider confirmed future price-cap rates and use later forecasts only as a guide. - Could I afford an increase in variable rates?
If not, the certainty of a reasonable fix may be more valuable. - Am I likely to switch again soon?
Consider moving home, buying an EV, installing solar panels or changing how you heat your home. - Am I comfortable with the contract and exit fees?
Make sure you understand the cost of leaving before the end date.
There is no way to know with certainty which tariff will be cheapest over the coming year. You are choosing between a known rate and the possibility that variable rates could rise or fall.
So, should you fix your tariff?
Fixing is worth considering when you can secure a competitive rate, want greater certainty and are comfortable remaining on the tariff for the contract term.
Staying on the price cap may be better when the available fixes are expensive, flexibility matters more to you or a smart tariff could be a better fit for your home.
Base the decision on the deal available to you, not on a general prediction about where energy prices are heading.
Compare the rates using your own annual usage, include the standing charges and read the contract terms. That will tell you far more than the headline annual price shown in an advert.
Frequently asked questions
Does a fixed tariff fix my total energy bill?
No. A fixed tariff keeps your unit rates and standing charges at the same level.
Your total bill will still depend on how much gas and electricity you use.
Does the energy price cap apply to fixed tariffs?
No. The Ofgem price cap applies to standard variable and other default tariffs.
A fixed tariff can be priced above or below the rates allowed under the price cap.
Can I switch from a variable tariff to a fixed tariff?
Usually, yes.
Standard variable tariffs do not normally have exit fees, so you can move to a fixed tariff when you find a suitable deal.
Can I leave a fixed tariff early?
You can usually leave before the end date, but you may have to pay an exit fee.
Check whether the fee applies to each fuel and whether the potential saving from switching would outweigh it.
What happens when my fixed tariff ends?
Your supplier will normally move you onto its standard variable tariff if you do not choose another deal.
Review your options before the end date so you can decide whether to fix again, stay variable or choose another type of tariff.