Should you switch to a fixed energy tariff in 2026?
As energy prices remain volatile and worries grow that conflict in the Middle East could lead to bill hikes, 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 forecast to climb sharply in the summer due to the war in the Middle East.
Households may be considering switching to a fixed price energy tariff in the hope of protecting themselves from potential future bill hikes.
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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 regulator’s price cap.
How much does a fixed energy tariff cost?
A fixed energy tariff locks in your rate for a fixed period, usually around a year, meaning you are shielded from any changes to the price cap during that time.
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 the price of variable tariffs are higher than the level you fixed at.
Conversely, there is a risk that energy prices will fall over the term of your fixed tariff, meaning you could be left paying more than someone who stayed on the price cap.
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.
When the consequences of the Iran war on UK energy costs first became clear, suppliers rushed to remove their fixed deals from the market and replaced them with significantly expensive offers. Many of these were above April’s price cap.
However, many suppliers have now started to offer much more competitive deals again, with some even offering savings on the current price cap.
That means that if you take one of these deals, not only will you be paying less for your energy between April and June, you may also make savings in July to September when the price cap is forecast to rise.
The July price cap is yet to be confirmed, and while most economists believe it will rise, there is always a small chance it could fall
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) | Exit fees |
Fuse Energy | Apr 2026 Fixed (15m) V15 | 15 months | £1,545 | £96 below cap | £100 per fuel |
Fuse Energy | Apr 2026 Fixed (13m) V14 | 13 months | £1,561 | £80 below cap | £100 per fuel |
Outfox Energy | Fix'd Dual Apr26 12M v6.0 | 12 months | £1,566 | £75 below cap | £75 per fuel |
Outfox Energy | Fix'd Dual Apr26 12M v11.0 - Family Advantage+ | 12 months | £1,597 | £44 below cap | £75 per fuel |
E.ON Next | Next Fixed 12m v121 | 12 months | £1,615 | £26 below cap | £50 per fuel |
Source: Uswitch, 20 April
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 energy price cap is based on typical use, so if you use more energy than an average household, you will likely pay more than this, and vice versa.
The cut came after the government removed certain environmental levies that pushed up household bills and urged suppliers to pass savings on to customers.
The reduction in bills will be enjoyed by households on both of the main tariff types – the standard variable tariff (SVT), which tracks the energy price cap and changes when the cap does, and the fixed rate tariff, which fixes your unit rate at a certain level for a set period of time.
However, this drop is likely to be short-lived as the war in Iran has led to surging wholesale energy costs.
Cornwall Insight, an energy consultancy well-regarded for the accuracy of their price cap forecasts, expects the July cap to reach £1,837 per year for the quarter – an increase of around £196 per year, or 12%.
While precise predictions differ, most forecasters agree that bills will rise to broadly this level in July if current market conditions continue.
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.
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: “Fixed energy tariff prices have been through a lot of turbulence in recent weeks, but the good news is we’re finally seeing deals drop below the current price cap again.
“If you are not already on a fixed deal, now is the time to start assessing your options.”
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.
