TL;DR
British Gas has launched a two-year fixed tariff called Fix & Fall that locks rates in for 24 months but automatically reduces them after 12 months if the Ofgem energy price cap falls on 1 July 2027. The supplier estimates customers on the tariff could save up to £50 a year on a typical dual-fuel bill if the cap drops next summer. The tariff sits against a backdrop of the price cap rising 13% from 1 July 2026 to £1,862 a year.
British Gas announced the Fix & Fall tariff on 27 May 2026, the same day energy regulator Ofgem confirmed a 13% rise in the energy price cap from 1 July to 30 September 2026. The new cap will push typical dual-fuel direct-debit bills from £1,641 to £1,862 a year for the roughly 19 million households on a standard variable tariff direct debit.
Fix & Fall is structured as a 24-month fixed tariff with a built-in reset. Customers who sign up lock in rates today, and those rates remain fixed for the first year. From the 12-month anniversary, the tariff automatically reduces if the Ofgem price cap announced for 1 July 2027 is lower than the cap level used at the point of sign-up.
How the automatic reduction works
Conventional fixed tariffs lock both the customer and the supplier into a set unit rate and standing charge for the full term. If wholesale costs fall during that term, the customer pays the higher fixed rate while standard variable tariff customers benefit from the lower cap.
Fix & Fall changes that asymmetry by tying the second-year rate to the published price cap on 1 July 2027. If the cap falls between 1 July 2026 and 1 July 2027, the tariff resets downwards. If the cap rises, the customer keeps the rate fixed at sign-up. The mechanism is one-directional: rates can only fall, not rise, after the 12-month point.
British Gas estimates the maximum benefit at around £50 a year on a typical dual-fuel bill, based on its modelling of how the cap might move in the second half of 2027. The actual saving depends on where the cap lands and on individual household consumption.
How it compares to the standard variable tariff from July
From 1 July 2026, the Ofgem cap sets the maximum a supplier can charge a standard variable tariff customer:
- Electricity unit rate: 26.11 pence per kWh
- Daily standing charge: 57.19 pence
- Typical dual-fuel direct-debit bill: £1,862 a year
- Typical prepayment bill: £1,812 a year
- Typical standard credit bill: £2,005 a year
The next price cap review covers October to December 2026 and will be published by Ofgem on 26 August 2026. The July 2027 cap, which determines the Fix & Fall reset point, will be announced in May 2027.
Who Fix & Fall suits
The tariff is designed for households that want price certainty for the next 12 months and are prepared to commit for two years in exchange for downside protection in year two. It removes the standard fixed-tariff risk of being stuck above the cap if wholesale prices fall.
Households on prepayment meters and standard credit pay more under the price cap than direct-debit customers. The Fix & Fall offer is available to direct-debit customers; the supplier has not confirmed whether equivalent terms will be offered to other payment methods.
Customers on existing fixed tariffs should check the exit fee against potential Fix & Fall savings before switching. Exit fees on existing fixes typically range from £25 to £75 per fuel.
Key facts
- Fix & Fall is a two-year fixed tariff from British Gas, launched 27 May 2026.
- Year one rates are locked at sign-up. Year two rates automatically reduce if the Ofgem cap falls on 1 July 2027.
- Rates cannot rise above the year-one fix; the reset is downward only.
- British Gas estimates maximum saving of around £50 a year on a typical dual-fuel bill.
- The Ofgem cap rises 13% from 1 July 2026 to £1,862 a year for typical dual-fuel direct debit.
FAQ
What happens if the energy price cap rises again on 1 July 2027?
Customers on Fix & Fall keep the rate locked at sign-up. The tariff does not allow rates to rise above the year-one level, even if the cap moves higher.
Can a customer leave Fix & Fall early?
British Gas applies exit fees on fixed tariffs. The supplier has not published Fix & Fall exit fees at the time of launch; customers should check the tariff terms before signing up.
Does the tariff include all electricity and gas customers?
Fix & Fall is offered to direct-debit customers. The supplier has not confirmed terms for prepayment or standard credit payment methods.
How is the year-two rate calculated?
The reset uses the Ofgem cap level published in May 2027 for the period 1 July to 30 September 2027. If that cap is lower than the cap level at the customer's sign-up date, the Fix & Fall rate automatically reduces.
