Should you switch to a fixed energy tariff in 2026?

Energy bills for millions of households increased by 4% on 1 October, when Ofgem’s new price cap came into effect.

The average annual energy bill for a typical dual-fuel household on the energy price cap is now £1,723, up from £1,663 per year between July and September.

The hike affects around 22 million customers in the UK who are on a standard variable energy tariff (SVT), which tracks movements in the price cap.

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However, the 11 million households who fix their energy tariff will be protected from the increase, with many paying lower rates they locked in earlier.

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.

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

For example, getting a fixed energy deal below the current October price cap guarantees you will pay lower unit rates for your energy until at least the end of the year. With forecasters expecting energy prices to soar in January too, your savings may continue into the new year.

However, the risk of entering into a fixed energy tariff is that 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 your energy usage may vary. 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, and Go.Compare. The table below shows the top fixed price deals for gas and electricity on the market at the moment.

Source: Uswitch, 2 October

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 leaving you with a bigger bill than if you had stayed on the price cap.

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.

Richard Neudegg, director of regulation at Uswitch.com, said: “Switching energy tariff to a well-priced fixed deal is the biggest lever households on the price cap can pull to bring their costs down right now.

“While getting off the standard variable tariff means you can avoid the big increases [expected] to come, it may not be enough, so keeping a close eye on energy usage will be crucial.”

Energy price inflation has accelerated since February when the Iran war caused huge disruption to the energy market, causing prices to spike.

“This winter will be tougher than last, so households should take action now,” said Neudegg. “For those worried or concerned about paying their bills – it’s important not to suffer in silence.”

If you think you may have trouble paying, there are steps you can take to lower your bill.

You might be able to get help through your energy supplier as many run schemes to help households with costs, while households who receive means-tested benefits could get the £150 Warm Home Discount.

Additionally, if you are a pensioner with an income of £35,000 or less, you could be eligible for the Winter Fuel Payment, which is worth up to £300 a year.

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.