Should you switch to a fixed energy tariff in 2026?
Energy bills jumped up by 13% on 1 July as disruption from the Iran war made the cost of wholesale energy soar. Is now the time to look for a fixed energy tariff? We look at the latest gas and electricity deals.
Energy bills rose for millions of households on 1 July summer after the new Ofgem energy price cap came into effect.
The cap, which is in force from July to September, will bring the average annual energy bill for a household on a dual fuel tariff paying by direct debit to £1,862, 13% higher than the April to June cap.
It means the average household will fork out £221 more a year, or roughly £18 more every month for energy.
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The rise in the price cap will affect all customers on a standard variable energy tariff (SVT) as these rise and fall in line with the cap.
The vast majority of households (around 33 million) in the UK are on a variable tariff, but 21 million now fix their energy tariff.
A fixed energy tariff locks the unit rate of your energy for a fixed period of time. This can give you more security against future price hikes and allow you to pay a consistent rate for your energy.
On the other hand, you run the risk of fixing your energy bill at a higher level than you need to, meaning you could be forking out more than if you had stayed on the Ofgem price cap.
How much does a fixed energy tariff cost?
When you choose a fixed energy tariff, you agree to lock the unit rate of your energy at a certain level for a set period of time, usually a year.
This can shield you from increases to the price cap that may occur during the locked period. But if the price cap falls, you may be stuck paying more than you need to for the locked period.
A fixed tariff doesn’t necessarily mean that your energy bill will be identical every month, as you may use more energy. Rather, it means that the rate you are charged per unit of gas and electricity you consume stays the same.
If you decide to fix, you’ll want to make sure you shop around for the best rate. You can do this through price comparison sites like MoneySuperMarket, Uswitch, Go.Compare and MoneySavingExpert.com.
While Ofgem is yet to confirm whether the price cap will rise or fall in the final quarter of 2026, forecasters expect energy prices will stay high for some time.
This means that fixing your energy at a level could keep you protected from future price hikes until at least next year.
The below table shows the top fixed price deals on the market at the moment
Supplier | Tariff | Duration | Average annual bill | Difference vs July price cap (£1,663) | Exit fees |
Outfox Energy | Outfox the Price Cap - Fix'd DUAL July 2026 - 15M V8 | 15 months | £1,424 | £239 below cap | £75 per fuel |
Fuse Energy | July 2026 Fixed (15m) V7 | 15 months | £1,453 | £210 below cap | £50 per fuel |
Fuse Energy | July 2026 Fixed (13m) V8 | 13 months | £1,471 | £192 below cap | £50 per fuel |
Outfox Energy | Fix'd Dual Jul26 12M v2 - Family Advantage+ | 12 months | £1,517 | £146 below cap | £75 per fuel |
Outfox Energy | Fix'd Dual Jul26 12m v3 | 12 months | £1,519 | £144 below cap | £75 per fuel |
Outfox Energy | Fix'd Dual Jul26 24M v2 | 24 months | £1,520 | £143 below cap | £100 per fuel |
100Green | Exclusive Spring 100% Green 12M July 27 | 12 months | £1,530 | £133 below cap | None |
Good Energy | Good Energy 12m Fix Jul26 | 12 months | £1,532 | £131 below cap | £75 per fuel |
So Energy | So Gazelle 18m | 18 months | £1,541 | £122 below cap | £95 per fuel |
So Energy | So Gazelle 24m | 24 months | £1,549 | £114 below cap | £95 per fuel |
Source: Uswitch, 14 July
Bear in mind, while these deals are widely available, there may be loyalty deals which are exclusive to existing customers. These can offer superior rates to those listed above. Check with your supplier to see if you can sign up for one of these tariffs.
Always read the fine print of any fixed tariff as well – some require you to have a smart meter, pay by a certain method or require you to sign up for other services to unlock the deal.
If you have an electric vehicle, there are specific tariffs available that could be cheaper than the deals mentioned above.
What’s happening with the energy price cap?
Energy prices have been quite volatile so far in 2026. The average household on an SVT paid £1,758 a year for their energy in the first quarter of the year.
Then, on 1 April, millions of households saw their energy bills fall by 7% to £1,641 after the government removed some green levies from household energy bills, bringing the price cap down.
However, thanks to the shock to the energy market caused by the Iran war, wholesale prices surged and led the price cap to rise by 13% again on 1 July.
Cornwall Insight, an energy consultancy well-regarded for the accuracy of its price cap predictions, expects the October price cap to marginally fall by 0.7% to £1,849 per year – a decrease of £13 compared to the July cap.
If you have already locked into a fixed-rate tariff, you are not impacted by fluctuations in the energy price cap during the fixed term.
However, those who are shopping around for a new fixed tariff will find that prices are influenced by wider trends in the energy market – including how high or low the price cap is at the time.
Should you fix your energy tariff?
Whether or not you should fix your energy tariff is a difficult question to answer, especially in the current circumstances. It ultimately boils down to your appetite for risk.
Fixing offers you the certainty of knowing what you’ll pay per unit of gas and electricity rather than depending on the price cap, which can change suddenly as a result of external shocks.
This could be useful during times of turmoil in the energy markets as you are able to plan your energy budget in advance, knowing exactly what your unit rates will be for a year or more.
However, you also run the risk of fixing at a level above future price caps, potentially footing you with a bigger bill than is ideal.
There is no one size fits all solution – what you should do depends on where you think energy prices will go in the future, and whether you have the risk tolerance to potentially lock yourself into paying higher rates than you need.
Ben Gallizzi, energy expert at Uswitch, told MoneyWeek: “The 24% jump in gas prices might seem easier to bear in July while heating is off – but a graver concern is this setting the baseline for a further increase in October.
“Getting off a price cap tariff should be an urgent priority for households. Locking in a fixed deal now will keep your rates protected when the heating turns back on, especially as bills are predicted to rise again in October.”
Gallizzi advised to look online to find the best deals available, and urged households to lock in lower rates now to “protect yourself for the winter”.
Ofgem energy supplier switching rules
If you change providers, suppliers have to complete customer switches within five working days (six if you enter into a contract after 5pm). Failure to do so will mean they have to pay affected customers compensation of £40.
If the supplier you’re moving to fails to switch you across in time, complain to them directly. Should they fail to pay you the compensation you are due, you can escalate your complaint to the Energy Ombudsman, which can resolve the dispute.
Bear in mind, if you’re on a fixed tariff and switch providers, you may incur an early exit fee if you’re moving before the end of the deal term.
