TL;DR
Customers of Octopus, British Gas and E.ON who are already on fixed tariffs should compare their unit rates and standing charges against the new Ofgem cap from 1 July. Some fixes may now sit above the cap level, making the standard tariff cheaper for the rest of the term.
Customers of Octopus, British Gas and E.ON who are already on fixed tariffs have been warned to compare their unit rates and standing charges against the new Ofgem cap that takes effect from 1 July 2026. With the cap rising 13 per cent, some fixed deals signed earlier in the year now sit closer to or above the cap level.
Why the comparison matters
Fixed tariffs lock in unit rates and standing charges for a defined term, typically 12 or 24 months. When the variable cap rises sharply, fixes can look favourable. When the cap falls below the fixed rate, the protection turns into a premium.
From 1 July the cap rises to £1,862 a year for a typical dual-fuel household, up from £1,641. Households on a fix below that level still benefit from the lock-in. Households on a fix above it pay more than they would on the standard tariff.
How to find the fixed rates
The most recent tariff information letter from the supplier shows unit rates and standing charges for the customer's region. The same figures are listed in the customer's online account or app.
Comparing tariffs needs both unit rates and standing charges, not just one. A low unit rate combined with a high standing charge can match a higher unit rate with a lower standing charge depending on usage.
Exit fees and the decision to switch
Fixed tariffs typically include exit fees that apply if the customer switches supplier before the end of the term. Common exit fees range from £25 to £100 per fuel, so a dual-fuel household leaving early can pay £50 to £200.
The decision to leave early is a maths exercise. The expected saving over the remaining term has to exceed the exit fee for the move to make sense. Ofgem-accredited comparison tools include exit fee impact in the annual cost calculation.
Tracker and time-of-use alternatives
Octopus operates a tracker tariff that follows wholesale gas and electricity prices and can move below the cap during low wholesale periods. The risk is that wholesale prices rise sharply, taking the tariff above the cap.
Time-of-use tariffs price electricity by half-hour period and reward consumption that shifts to off-peak times. Households with electric vehicles or smart storage heaters typically benefit most from time-of-use products.
Where to get advice
Citizens Advice operates a free energy helpline on 0808 223 1133 and the Money and Pensions Service offers guidance through moneyhelper.org.uk. The Energy Saving Trust publishes practical tips on cutting consumption.
Anyone on a fixed tariff worried about affordability should also check supplier hardship funds. British Gas, Octopus, EDF, E.ON and Scottish Power all run schemes that can write off arrears for eligible customers.
Key facts
- Cap rises 13 per cent on 1 July 2026.
- Typical fixed tariff exit fee is £25 to £100 per fuel.
- Ofgem cap is reviewed every three months.
- Citizens Advice energy helpline is 0808 223 1133.
- Tracker tariffs follow wholesale prices and can move below or above the cap.
FAQ
How do I know if my fix is still good value?
Compare the fixed unit rate and standing charge against the new Ofgem cap from 1 July. Use an Ofgem-accredited comparison tool such as the Citizens Advice energy comparison to model annual cost at typical usage.
How big are the exit fees on fixed tariffs?
Typical exit fees range from £25 to £100 per fuel. A dual-fuel household can pay £50 to £200 to leave early. The expected saving over the remaining term has to exceed the exit fee for switching to make sense.
Is a tracker tariff a better option?
Tracker tariffs follow wholesale gas and electricity prices. They can sit well below the cap when wholesale prices are low but can also rise above the cap if markets tighten. Households who watch the market closely benefit most.
Where can I get help if I cannot pay my bills?
Citizens Advice runs a free energy helpline on 0808 223 1133. Major suppliers run hardship funds that can write off arrears for eligible customers. The Money and Pensions Service offers free guidance through moneyhelper.org.uk.
