Energy Bills and Switching Suppliers UK 2026 — Complete GuideShould I Fix My Energy Prices Now? — Price Cap vs Fixed Tariff Guide
Is it worth fixing your energy prices or staying on the price cap? Compare fixed tariffs vs variable rates, when locking in saves money, and how to decide for your household.
If you are comparing tariffs, switching options, and bill-control tactics, start with the Energy Bills and Switching Hub for the full decision framework.
With energy prices fluctuating, choosing between a fixed tariff and the variable price cap is a key household decision. Here’s how to decide.
Read more: See our Energy Grants guide for a complete overview of this topic.
Fixed Tariff vs Price Cap — Key Differences
| Feature | Fixed Tariff | Variable (Price Cap) |
|---|
| Rate changes | Locked in for 12-24 months | Changes every quarter |
| Price certainty | High | Low |
| Can it go up? | No (during fix) | Yes, each quarter |
| Can it go down? | No (during fix) | Yes, if cap falls |
| Exit fees | Sometimes (£25-£100 per fuel) | None |
| Switching | May cost during contract | Free anytime |
| Best for | Budget certainty | Flexibility, falling prices |
How the Energy Price Cap Works
| Element | What it caps |
|---|
| Unit rate (electricity) | Maximum pence per kWh |
| Unit rate (gas) | Maximum pence per kWh |
| Standing charge | Maximum daily amount |
| Review frequency | Every 3 months (Jan, Apr, Jul, Oct) |
| Typical household bill | ~£1,568/year (Q1 2026 cap) |
The cap sets the maximum rate — suppliers can charge less, and some do.
When to Fix Your Energy Prices
Fixing makes sense when:
| Indicator | Why fix |
|---|
| Fixed deal cheaper than current cap | Guaranteed savings |
| Energy prices expected to rise | Lock in before increases |
| Winter approaching | Usage and prices typically higher |
| You want budget certainty | Same monthly payment regardless |
| Volatile wholesale markets | Protection from sudden rises |
The Price Cap Forecast
| Quarter | Expected cap (typical household) | Direction |
|---|
| Current | ~£1,568/year | — |
| Next quarter | Check Ofgem forecast | Watch Cornwall Insight/analysts |
If fixed deals are available below the current or forecasted cap, they’re likely worth taking.
When to Stay on the Variable Rate
| Indicator | Why stay variable |
|---|
| Cap expected to fall | You’ll benefit from drops |
| Fixed deals above the cap | Fixing would cost more |
| You want flexibility | No exit fees, switch anytime |
| Short-term renter | May move before fix ends |
| Low energy user | Smaller potential savings |
How to Compare — Unit Rates, Not Annual Estimates
Don’t just compare headline annual figures. Compare the unit rates and standing charges:
| What to compare | Fixed offer | Current cap rate |
|---|
| Electricity unit rate (p/kWh) | e.g., 24.2p | e.g., 24.5p |
| Gas unit rate (p/kWh) | e.g., 5.8p | e.g., 6.0p |
| Electricity standing charge (/day) | e.g., 61p | e.g., 61p |
| Gas standing charge (/day) | e.g., 31p | e.g., 32p |
If the fixed rates are lower across the board, fix. If they’re higher, stay variable.
Calculating Your Potential Savings
| Your annual usage | Cap rate cost | Fixed rate cost | Annual saving |
|---|
| Typical (2,700 kWh elec, 11,500 kWh gas) | £1,568 | £1,480 (example) | £88 |
| Medium-high (3,500 kWh elec, 15,000 kWh gas) | £2,000 | £1,890 (example) | £110 |
| High (5,000 kWh elec, 20,000 kWh gas) | £2,800 | £2,640 (example) | £160 |
Higher usage households save more from fixing at a lower rate.
Tips for Getting the Best Energy Deal
1. Use Comparison Sites
- Ofgem’s accredited comparison sites: Uswitch, Compare the Market, MoneySupermarket
- Check direct with suppliers too — some deals aren’t on comparison sites
2. Check for Exit Fees
| Tariff type | Exit fee |
|---|
| Exit-fee-free fixed | £0 |
| Standard fixed | £25-£100 per fuel |
| Last 49 days of contract | £0 (always fee-free) |
3. Consider Your Usage Pattern
| User type | Strategy |
|---|
| Low user (small flat, out all day) | Standing charge matters more |
| Average user | Unit rate matters most |
| High user (large house, WFH, EV) | Unit rate critical — fix if cheaper |
| Economy 7/10 (night storage) | Check specific multi-register rates |
4. Set Calendar Reminders
| When | Action |
|---|
| 8 weeks before fix ends | Start comparing deals |
| 4 weeks before fix ends | Lock in your best option |
| When fix ends | Check you’re on the new deal |
| Each quarter (Jan, Apr, Jul, Oct) | Review when price cap changes |
Smart Meters and Switching
A smart meter makes switching easier:
| Benefit | Detail |
|---|
| Accurate bills | No estimated readings |
| Easy switching | New supplier reads meter remotely |
| Usage tracking | See when you use most energy |
| Prepayment flexibility | Top up online instead of at shops |