Should you switch to a fixed energy tariff in 2026?

Millions of people will see their energy bills fall by 7% from April, after Ofgem announced the new energy price cap.

The drop, which was mainly driven by the government’s decision to cut green levies from household energy bills, is expected to bring the average energy bill for a household on a dual-fuel tariff paying by direct debit to around £1,641 a year. This is based on typical use, so if you used more energy, you would pay more than this.

That is a saving of around £117 a year when compared to the current cap.

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The energy price cap determines the maximum unit rate that a supplier can charge for energy. It is reviewed every quarter, and analysts believe the price of energy will remain at broadly the same level in the next price cap period between July and September.

Households in the UK pay for their energy through two main tariffs – the standard variable tariff (SVT), which tracks the price cap and can change when the cap does, and fixed rate tariffs, which fix your unit rate at a certain level for a set period of time.

Fixing your bill can provide more security against future price hikes, allow you to pay a consistent unit rate for your energy, and could potentially save you some money.

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 for your energy than if you had stayed on the price cap.

Roughly 21 million households are currently on a fixed tariff, according to the latest data from Ofgem in February 2026.

But how exactly do fixed tariffs work, and are they a better option than the price cap in the current climate?

How much does a fixed energy tariff cost?

A fixed energy tariff locks in your rate for a fixed period, usually a year, meaning you’re shielded from any changes in the wholesale cost of energy.

A fixed energy tariff doesn’t fix what you pay, just the rate you are charged per unit of gas and electricity. So, like with the price cap, the more you use, the more you’ll have to pay.

Timed right, fixed deals can potentially save you hundreds of pounds a year compared to the price cap, if wholesale costs shoot up.

But, conversely, there is the risk energy prices will fall over the term of your fixed tariff, meaning you pay more than someone on the price cap.

In any case, you’ll want to make sure you shop around for the best rate. You can do this through price comparison sites like MoneySuperMarket, Go.Compare and MoneySavingExpert.com.

A number of fixed deals currently on the market are more than 14% cheaper than the current (Q1) price cap.

Deals that are cheaper than the price cap

• Outfox Energy Fix'd Dual Feb26 12M v3.0, 12 month fix. 13.6% less than the January price cap, open to new and existing customers, but comes with a £75 early exit fee per fuel.
• Fuse Energy: January Fixed (12m) v3, 12 month fix. 13.4% less than the current price cap, open to new and existing customers, but comes with a £50 early exit fee per fuel.
• Ecotricity: EcoFixed – 1 Year Jan26 v1, 12 month fix. 11.7% less than the current price cap, open to new and existing customers, but you must pay by direct debit and the deal includes a £75 early exit fee per fuel.

Source: MoneySavingExpert.com (correct as of 25 February 2026).

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. We look at the best EV energy tariffs in a separate piece.

Should you fix your energy tariff?

Ultimately, whether a fixed tariff is for you is 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 is subject to change.

Ofgem has confirmed that the price cap will fall 7% from 1 April, taking the average dual-fuel energy bill to £1,641 a year between April and June.

That means that if any fixed deal you are looking at provides you with a saving of more than 7%, you will likely be better off than sticking on the price cap.

Looking further into the future, many forecasters expect energy prices to remain close to April’s level in the short term.

Energy consultancy and research firm Cornwall Insight, who are well-regarded for the accuracy of their price cap predictions, expect average energy bills to rise marginally by £4 a year in the third quarter of 2026.

They expect the average household on a dual-fuel tariff paying by direct debit will pay £1,645.20 a year for their energy between July and September.

What will happen to energy prices beyond this is harder to predict, however if you sign up for a fixed tariff now well under the current price cap you could potentially make some savings in the long term.

Nathan Blackler, expert at Go.Compare Energy, said: “Fixed tariffs offer protection against energy market volatility and give peace of mind, especially for households with tight budgets or those who prefer financial stability.

“However, it’s not a one-size-fits-all solution. Fixed deals often come with higher exit fees, meaning that if you want to end your contract early you’ll have to pay a fee.

“Some fixed tariffs may also have higher rates than standard variable tariffs, particularly if energy prices fall during your contract, so you could end up paying more than those on a variable plan.”

If you are considering fixing your bill, you should make sure your chosen supplier has said it will pass on the government’s £150 energy bill cut to you, ensuring you are maximising your savings.

The good news is that most suppliers have said they will do this – including major suppliers like British Gas, E.on, EDF, Octopus, Ovo, and others – but it is best practice to double check before you fix.

What is the energy price cap?

The price cap sets the maximum amount that can be charged for standing charges and each unit of energy. It affects customers who are on a standard variable (also known as default) tariff.

While around 21 million households are on a fixed energy deal, about 33 million households are sitting on the energy price cap.

The price cap is reviewed on a quarterly basis. The unit rates for the current price cap (January to March) and the next (April to June) are shown below.

Source: Ofgem

These Ofgem figures are national averages. Your actual unit rates depend on where in the UK you live. You can find out more about prices in your area on the energy regulator's website.

Based on the above price cap figures, the typical annual bill is £1,758 from January to March for a dual-fuel household paying by direct debit. That will fall to £1,641 in April to June.

This figure, quoted in pounds, shows what a bill could look like if the cap were to remain at the same level all year.

However, the price cap changes every three months and so billpayers on a standard variable rate will likely pay more or less than this due to price variations over the year.

Does the price cap impact fixed-rate tariffs?

Customers who have already locked into a fixed-rate tariff are not impacted by fluctuations in the energy price cap.

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.

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.