TL;DR
Switching from the Ofgem cap to a competitive fixed tariff before 1 July could save a typical dual-fuel household around £250 against the cap level. Comparisons should use both unit rates and standing charges, and reflect exit fees on the new deal.
Switching from the Ofgem cap to a competitive fixed tariff before 1 July 2026 could save a typical dual-fuel household around £250 a year against the new cap level of £1,862. The exact saving depends on the household's consumption profile, the chosen fixed product and the supplier's exit fees if the saver wants to leave early.
Where the £250 figure comes from
The estimate compares the new cap-level annual cost of £1,862 with the lowest competitive fixed deal sitting around £1,600 for a typical dual-fuel household on 11,500 kWh of gas and 2,700 kWh of electricity. The £250 gap reflects the cheapest fixes seen during the late May comparison period.
Real-world savings will differ. Households with higher-than-typical usage save more in absolute terms. Households with lower usage save less. The accredited comparison tools model the figure on actual annual consumption rather than a typical profile.
Which fixed deals are competitive in May 2026
Octopus, EDF, OVO Energy and So Energy each offer fixed-rate tariffs below the new cap level at the time of writing. Some are restricted to specific customer groups, such as existing customers or those signing up online.
British Gas's Fix and Fall tariff has the unusual feature of automatic rate reductions if the cap falls on 1 July 2027. The unit rates at launch sit close to the cap but lower than some competing fixes when standing charges are included.
How to compare deals accurately
Comparison sites accredited under Ofgem's Confidence Code, including the Citizens Advice tool, model annual cost for each tariff at the household's actual consumption. The comparison must use both unit rates and standing charges, not just one.
Pay attention to dual fuel versus single fuel. Households who heat with electricity only should compare electricity-only fixes against the electricity portion of the cap, not the dual-fuel headline figure.
Exit fees and the early-switch decision
Most fixed tariffs include exit fees that apply if the customer leaves the supplier before the term ends. Typical exit fees range from £25 to £100 per fuel. The saving relative to the cap has to exceed the exit fee for an early switch to be profitable.
Customers moving home are not charged the exit fee under industry rules and can take the tariff to the new property if the supplier covers the area, or transfer to the standard tariff without penalty.
Tracker, time-of-use and standard variable
Tracker tariffs follow wholesale gas and electricity benchmarks and can fall below the cap during low wholesale periods. They can also rise above the cap if markets tighten, which is the trade-off compared with a fix.
Time-of-use tariffs price electricity by half-hour period. Households with electric vehicles, smart heating or large overnight loads can save against the cap. Households without flexible consumption may pay more than the cap.
Key facts
- Typical saving against the new cap is around £250 a year.
- New cap takes effect 1 July 2026 at £1,862.
- Exit fees on fixed tariffs are typically £25 to £100 per fuel.
- Ofgem Confidence Code accredits comparison tools.
- British Gas Fix and Fall includes automatic rate reductions if the cap falls in 2027.
FAQ
Can I really save £250 by switching?
Yes, for a typical household with consumption around 11,500 kWh of gas and 2,700 kWh of electricity. Actual savings vary by household size, usage and chosen tariff. Comparison sites model the figure on your real annual consumption.
Which suppliers have the cheapest fixed deals?
Octopus, EDF, OVO and So Energy each currently offer competitive fixed-rate tariffs below the new cap. Eligibility and unit rates vary by region and customer status. The Ofgem-accredited comparison tools list current offers.
What happens if the cap falls again later?
Fixed tariffs lock in the rate even if the cap falls. British Gas's Fix and Fall is the exception, with an automatic reduction if the cap falls on 1 July 2027. Other fixes do not move with the cap.
Do I pay exit fees if I switch?
Most fixed tariffs include exit fees of £25 to £100 per fuel if you leave before the end of the term. The saving relative to your next tariff has to exceed the exit fee for an early switch to make sense.
