On this page
Side by side
| Fixed | Variable (standard) | |
|---|---|---|
| Your rates | Locked for the deal, usually 12 months | Change every January, April, July and October with the price cap |
| Price protection | Yes, for the deal's length | Capped, but the cap moves |
| Exit fees | Often, unless 49 days or fewer are left | None |
| Best when | You want certainty and prices are expected to rise | Prices are expected to fall, or you want flexibility |
Sources: Citizens Advice and Ofgem.
Where prices stand now
The Ofgem price cap rose by 4% for 1 October to 31 December 2026. The cap covers standard variable tariffs, not fixed ones, and it limits your unit rate and standing charge, not your total bill (Ofgem). Ofgem will announce the next cap on 25 November 2026, for 1 January 2027.
From 1 October 2026 to 31 March 2027, household electricity in Great Britain has 0% VAT. Gas stays at 5% (GOV.UK).
When fixing can make sense
A fixed deal gives you certainty. It does not guarantee the cheapest price over the whole deal.
- You want to know your rates and standing charge for budgeting.
- The fixed rates are at or below the current cap rates, and you are happy with the deal length.
- You can live with the risk that rates fall. If wholesale prices drop, you could pay more than on a variable tariff.
What to check before you fix
- The unit rate and standing charge against today's cap rates.
- Any exit fee, and the date from which you can leave free.
- The end date, and what you move to afterwards.
- Your standing charge, which you pay whatever you use.
- Whether the deal is fixed or a tracker. Trackers follow wholesale prices and are not covered by the cap.
Fixed rates lock the prices, not your bill. If you use more energy, you still pay more. Nobody can predict prices reliably. Fix for certainty, not to beat the market.
When a fixed deal ends
You can switch with no exit fee when 49 days or fewer are left. If you do nothing, you are usually moved to your supplier's standard variable tariff (Citizens Advice). Put the end date in your diary.
Frequently asked questions
Does the price cap apply to fixed tariffs?
No. The cap protects standard variable tariffs. If you are on a fixed deal, your rates stay as agreed until it ends.
Can I leave a fixed deal early?
Usually yes, but you may pay an exit fee. You can switch free when 49 days or fewer are left.
Will a fixed deal protect me from price rises?
It protects your unit rate and standing charge. It does not cap your total bill, which still depends on how much energy you use.
What if the price cap falls after I fix?
You stay on your fixed rates, so you could pay more than on a variable tariff. You can leave early only if you accept any exit fee.
When is the next price cap change?
Ofgem announces the cap for 1 January 2027 on 25 November 2026.