TL;DR
British Gas has launched a Fix and Fall tariff that locks rates for two years but automatically reduces them after 12 months if the Ofgem price cap drops on 1 July 2027. The supplier estimates savings of up to £50 a year against the average dual-fuel bill.
British Gas has launched a two-year fixed energy tariff that includes an automatic rate reduction if the Ofgem price cap falls next summer. The Fix and Fall deal arrives the same week regulator Ofgem confirmed the July 2026 price cap will rise by 13 per cent, adding about £209 to the typical annual bill.
What the Fix and Fall tariff actually does
British Gas customers who sign up to the new product fix their unit rates for two years from the start date. The departure from a standard fixed deal is the built-in adjustment clause: if the Ofgem default tariff price cap drops on 1 July 2027, the supplier reduces the customer's rates to match the lower cap level for the remainder of the term.
The mechanism only moves one way. If the cap rises in July 2027 the fixed rates stay put, so the protection works against rising bills as well as the fall scenario in the product name.
Who can switch and how it stacks up against the price cap
Existing British Gas dual-fuel and single-fuel customers paying by monthly direct debit can switch online or through the British Gas app. Customers on prepayment meters or Warm Home Discount priority tariffs should check eligibility before applying, as some legacy products carry restrictions.
Ofgem confirmed on 21 May 2026 that the cap will move from £1,641 to £1,862 a year for a typical dual-fuel household on direct debit from 1 July 2026, a rise of about £18 a month. The Fix and Fall unit rates sit just below that level at launch, meaning households on the standard variable tariff will pay slightly less from day one.
Savings British Gas is claiming
The supplier estimates a typical dual-fuel household could save up to £50 over the year against the price cap if the July 2027 cap reduction is triggered. The figure assumes Ofgem-style typical consumption of 11,500 kWh of gas and 2,700 kWh of electricity and direct debit billing.
Households with higher usage, electric heating, or non-direct-debit billing methods will see different outcomes. Comparison calculators from Citizens Advice and Ofgem accredited price comparison sites apply individual usage figures to fixed deal rates and remain the most reliable way to model the saving for a specific home.
What happens if you want to leave early
British Gas has confirmed standard exit fees apply if customers switch supplier or move to a different tariff before the two-year term ends. The published exit fee is £75 per fuel, so a dual-fuel household leaving early pays £150 in total.
Customers moving home are not charged the exit fee under industry rules and can either take the tariff to the new property if British Gas supplies the area or transfer to the cap-level standard tariff without penalty.
How it compares to other fixed deals on offer
EDF, Octopus and E.ON each list 12-month fixed products in the same week, though none currently carry an automatic price-drop clause. EDF's tracker-style product moves with wholesale gas and electricity benchmarks, which can fall faster than the cap when markets ease, but also rise faster when they tighten.
Households weighing the deal should compare the unit rates and standing charges side by side, not just the supplier's headline saving figure. The Ofgem-published cap rates and any fixed deal's annual cost at typical usage are the comparable numbers.
Key facts
- Tariff term is 24 months from sign-up date.
- Rates automatically reduce if the Ofgem cap falls on 1 July 2027.
- Exit fee is £75 per fuel for early switch.
- Available to dual-fuel and single-fuel direct debit customers.
- Ofgem cap rises 13 per cent on 1 July 2026, adding around £209 a year for a typical household.
FAQ
When does the British Gas Fix and Fall tariff take effect?
Sign-ups can begin from launch, with the two-year fixed period running from the day the new tariff is activated on the customer's account. The automatic rate reduction trigger date is 1 July 2027, aligned with the Ofgem cap review.
Who is eligible to switch to the British Gas Fix and Fall tariff?
Existing British Gas direct debit dual-fuel and single-fuel customers can apply through the supplier's website or app. Prepayment and legacy tariff customers should confirm eligibility before applying, as separate rules apply to those meter types.
How does the British Gas tariff compare with the July 2026 price cap?
British Gas pitches the launch unit rates below the new cap level of £1,862 a year, which takes effect on 1 July 2026. The cap is reviewed every three months, so the comparison can shift in October 2026, January 2027 and April 2027.
What happens if the price cap rises again in 2027?
If the cap rises on 1 July 2027 the fixed rates on the Fix and Fall tariff stay at their original level for the remainder of the term, protecting customers from the increase. The automatic reduction only triggers in the cap-falls scenario.
