Should you switch to a fixed energy tariff in 2026?
The energy price cap will climb by 13% this July as war in the Middle East has 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.
Sam Walker
Energy bills are set to rise for millions of households this summer after Ofgem, the energy regulator, announced the July to September price cap.
The new price cap 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 be forking out £221 more a year, or roughly £18 more every month for their energy during the quarter.
Try 6 free issues of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The cap will change on 1 July for all customers on a standard variable tariff that tracks the price cap.
The vast majority of households (around 33 million) in the UK are on a variable tariff, while 21 million fix their energy.
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 means that during the locked period you are shielded from any increases to the price cap that may occur during that time.
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 is 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.
Ofgem has now confirmed the price cap will rise in July, and most forecasters believe that energy prices will stay high for some time.
This means that fixing your energy at a level below the April cap will likely keep you protected 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 April price cap (£1,641) | Difference vs July price cap (£1,862) | Exit fees |
Fuse Energy | May 2026 Fixed (13m) V19 | 13 months | £1,614 | £27 below cap | £248 below cap | £50 per fuel |
Outfox Energy | Fix'd Dual May26 12m v19 | 12 months | £1,642 | £1 above cap | £220 below cap | £75 per fuel |
Ecotricity | EcoFixed - 1 year May 26 v2 | 12 months | £1,648 | £7 above cap | £214 below cap | £75 per fuel |
Outfox Energy | Fix'd Dual May26 12M v18 - Family Advantage+ | 12 months | £1,683 | £42 above cap | £179 below cap | £75 per fuel |
E.ON Next | Next Fixed 12m v133 | 12 months | £1,721 | £80 above cap | £141 below cap | £50 per fuel |
Source: Uswitch, 27 May
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?
Millions of households saw their energy bills fall by 7% on 1 April, when Ofgem’s new energy price cap came in.
The average annual energy bill for a household on a dual-fuel tariff paying by direct debit is now £1,641 for the period between 1 April and 30 June – around £119 per year less than in the first quarter.
The cut came after the government removed certain environmental levies that pushed up household bills and urged suppliers to pass savings on to customers.
However, this drop is going to be short-lived as the war in Iran has led to surging wholesale energy costs.
Ofgem said the price cap will rise by 13% in July to September, taking the average annual energy bill for a dual-fuel household paying by direct debit to £1,862 per year.
Meanwhile, Cornwall Insight, an energy consultancy well-regarded for the accuracy of its price cap predictions, expects the October price cap to rise by 2% to £1,899 per year – an increase of £27 compared to the July cap and £248 on the current April cap.
Customers who have already locked into a fixed-rate tariff 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 let you dodge these imminent price rises and 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 opt to 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.
