Bills
TL;DR
A fixed energy tariff locks in your unit rate and standing charge for a set period - typically 12 to 24 months. Fixes can protect against price cap rises but may leave you paying more if the cap falls. Always check the exit fee and compare against the current Ofgem price cap before signing. Most fixes carry exit fees of £50 to £150 per fuel.
Fixed energy tariffs returned to the UK market in volume from 2023 onwards as suppliers rebuilt confidence following the energy crisis of 2021-22. Under a fixed tariff, your unit rate for electricity and gas is contractually locked for the duration of the deal, insulating you from quarterly Ofgem price cap changes. In return, you pay an exit fee if you leave early and typically cannot benefit if the cap falls below your fixed rate during the contract period.
The Ofgem energy price cap sets a maximum unit rate and standing charge that variable tariff customers pay each quarter. Fixed tariffs are priced in relation to the expected future cap trajectory. Whether fixing saves money depends on whether the cap rises or falls relative to your fixed rate during the contract. This guide explains how to evaluate a fixed tariff deal in 2026.
Key facts (2026)
- The Ofgem price cap is reviewed and updated quarterly (January, April, July, October), setting maximum unit rates for variable tariff customers (Ofgem).
- Fixed tariff exit fees typically range from £50 to £150 per fuel (gas and electricity separately), though some suppliers charge zero exit fees (Ofgem tariff comparison data).
- You have a 14-day cooling off period after signing an energy contract during which you can cancel without penalty (Consumer Rights Act 2015).
- Smart meter data is used by some suppliers to offer personalised fixed tariffs based on your actual consumption pattern rather than an assumed average.
- Under Ofgem licence conditions, suppliers must contact you no less than 42 days before your fixed tariff ends to remind you to renew or switch.
How fixed energy tariffs work
When you sign up to a fixed energy tariff, your supplier contractually commits to charge you the agreed unit rate per kilowatt-hour (kWh) for electricity and gas, plus a fixed daily standing charge, for the contract period. Your bill still varies because the number of units you consume changes with the weather and your usage habits, but the price per unit does not change. This differs from a variable or standard tariff, where the unit rate moves in line with the Ofgem cap adjustments each quarter. A fixed tariff gives billing predictability rather than cost certainty.
How to compare a fixed tariff against the price cap
Ofgem publishes the current price cap unit rates and standing charges for each region on its website. To compare a fixed tariff offer, take your current annual consumption in kWh (found on a recent bill or estimated from your smart meter) and multiply it by the fixed tariff unit rate, then add the annual standing charge. Do the same calculation using the current cap rates to get the cap equivalent annual cost. A fixed deal is worth considering if the annualised cost is close to or below the cap equivalent and if there is meaningful upside risk of the cap rising during your fix period.
Note that the price cap varies by region across England, Wales, Scotland, and Northern Ireland. Comparison must use the cap rate for your specific region, which Ofgem breaks down by distribution network operator (DNO) area. Suppliers typically apply region-specific rates when you provide your postcode during the quote process.
Exit fees and contract terms to check
Before signing a fixed tariff, check these contract terms carefully. Exit fees apply if you leave before the end of the contract and are charged separately for gas and electricity. A typical exit fee of £100 per fuel means you pay £200 in total to leave early. Some suppliers offer fixed tariffs with no exit fees, which provides more flexibility. Check whether the standing charge is also fixed or whether the supplier reserves the right to vary it. Fixed tariff contracts should state clearly whether standing charges are subject to change.
When fixing makes financial sense
Fixing is most beneficial when wholesale energy prices are expected to rise, which would push the Ofgem cap higher in future quarters. If market forward prices for gas and electricity are significantly above the current cap level, suppliers will price fixed tariffs at a premium to the current cap but still below the expected future cap, offering a genuine hedge. Conversely, if wholesale prices are falling, fixing at current rates may mean you pay more than the cap would charge in six to twelve months' time. Checking Ofgem's published analysis of cap forecast trajectory is a useful starting point, though wholesale markets are volatile and forecasts carry significant uncertainty.
Switching to a fixed tariff
You can switch energy supplier or tariff at any time if you are on a variable or standard tariff. If you are already on a fixed tariff within a contract period, you can switch by paying any applicable exit fee. The switching process typically takes 17 working days under Ofgem's switching guarantee. You continue to be supplied and billed by your existing supplier until the switch completes. Under Ofgem rules, your new supplier takes responsibility for the switch and handles the notification to your existing supplier, so you only need to contact the new supplier to initiate the process.
Related guides
- Best energy suppliers UK 2026
- UK energy price cap 2026: latest rates
- UK smart meters 2026 guide
- All Bills guides →
Frequently asked questions
Can my supplier raise my fixed rate during the contract?
No, for unit rates. Your unit rate is contractually fixed. However, some contracts allow standing charge adjustments in limited circumstances - check the contract terms carefully. If your supplier tries to vary the unit rate within a fixed contract, this may be a breach of contract and you should contact Citizens Advice or the Energy Ombudsman.
What happens when my fixed tariff ends?
Your supplier must notify you at least 42 days before the end date. If you take no action, you will usually be moved to the supplier's standard variable tariff at the prevailing price cap rate. This is not necessarily bad if the cap has fallen, but you should compare alternatives before the end date to ensure you are on the most suitable deal.
Can I fix if I am on a prepayment meter?
Yes. Fixed tariffs are available to prepayment meter customers from many suppliers, though the range of deals may be smaller than for direct debit customers. Ofgem's licence conditions require suppliers to treat prepayment customers fairly and not to restrict their access to competitive tariffs without justification.
What is the cooling off period for a fixed tariff?
You have 14 days from the date of signing an energy contract to cancel without penalty under the Consumer Rights Act 2015 and Ofgem's supply licence conditions. After 14 days, exit fees apply if you leave before the end of the fixed term.
Does fixing affect my eligibility for the Warm Home Discount?
No. Eligibility for the Warm Home Discount is based on your household circumstances, not your tariff type. If you qualify, you receive the discount regardless of whether you are on a fixed or variable tariff. Check gov.uk for current Warm Home Discount eligibility criteria and participating suppliers for 2025/26.
How we verified this guide
All rules and figures were verified against Ofgem's price cap guidance, licence conditions, and switching guarantee documentation, plus Consumer Rights Act 2015 provisions, during May 2026. We do not accept payment from energy suppliers and do not earn commission on energy tariff comparison.
Primary sources
- Ofgem - Energy price cap explained
- Ofgem - Energy contracts and consumer rights
- Consumer Rights Act 2015 - legislation.gov.uk
- Citizens Advice - Energy contracts and your rights
Last reviewed: May 2026.