Should you switch to a fixed energy tariff in 2026?

Millions of households will see their energy bills increase by 4% this autumn, when Ofgem’s new price cap comes into effect.

From 1 October, the average annual energy bill for a typical household on the energy price cap, paying for gas and electricity by direct debit, will be £1,723 – up from £1,663 per year between July and September.

The hike will affect around 22 million customers in the UK who are on a standard variable energy tariff (SVT).

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However, around 11 million households will be protected from the increase because they have fixed their energy tariff.

However, around 11 million households will be protected from the increase because they have fixed their energy tariff.

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.

They can give you more security against future price hikes and allow you to pay a consistent rate for your energy that is below the price cap.

But if the price cap falls, you may be stuck paying more than you need to for the rest of your agreed-upon period.

A fixed tariff doesn’t necessarily mean your energy bill will be identical every month, as you may use more energy. Rather, it means 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.

As Ofgem has confirmed that the price cap will rise again in the final quarter of 2026, locking at a level below the current price cap will protect you from higher bills until at least the end of the year.

Forecasters also believe that energy prices will rise again in the first quarter of 2027, with consultancy Cornwall Insight expecting the price cap to increase by 9%.

The table below shows the top fixed price deals for gas and electricity on the market at the moment

Source: Uswitch, 26 August

These deals are widely available but 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 a better fixed tariff.

Always read the fine print of any fixed tariff – some say you must 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.

Should you fix your energy tariff?

Whether or not you should fix your energy tariff is a difficult question to answer. 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.

Sabrina Hoque, energy expert at Uswitch.com, warned that following the announcement of the October price cap ”households on a standard variable tariff who don’t make the crucial switch to a fixed tariff risk paying more for their heating this winter.

“With 17 deals currently undercutting the October price cap by up to £173, there is plenty of choice for households wanting to pay less and protect themselves from any future increases.”

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.