Energy · Guide
Fixed or variable energy tariff: which is cheaper?
From 1 October 2026 to 31 December 2026, the Ofgem price cap puts a typical home paying by Direct Debit at £1,723 a year: electricity 26.32p per kWh plus 54.83p a day, gas 7.97p per kWh plus 29.68p a day.
Today's price cap at a glance
Price cap now · Ofgem
£1,723 a year, typical home
Electricity £858 · Gas £865 · 1 Oct 2026 to 31 Dec 2026
How each tariff works
A variable tariff follows the energy price cap, while a fixed tariff holds your prices for the whole deal.
Variable tariffs follow the price cap. Ofgem sets the cap every three months, from 1 January, 1 April, 1 July and 1 October. It limits the unit rate, which is the price for each unit of energy you use, and the daily standing charge. It does not limit your total bill, because your usage still decides what you pay.
Fixed tariffs hold your unit rate and standing charge for the length of the deal, usually 12 to 24 months.
Exit fees can apply if you leave early. Leaving early can cost an exit fee per fuel, so check both before you sign.
When fixing pays off
A fix pays off when its rates stay below the price cap for the whole deal. Compare the two before you decide.
Start with the cap. Ofgem changes it every three months, from 1 January, 1 April, 1 July and 1 October. The current cap rates are shown on this page. Compare a fixed deal's unit rates and standing charges with them.
Then think about the months ahead. If the cap falls, a fix may cost more. If the cap rises, a fix could save you money. A fix keeps your rates steady, even when the cap moves.
Use the energy bill calculator to turn each tariff into a yearly cost. Not sure of your usage? Ofgem's typical household uses 2,500 kWh of electricity and 9,500 kWh of gas a year.
Before you fix
Four checks keep your fixed deal from surprising you.
- Check the contract length. Fixed deals usually run 12 to 24 months. Pick a length you can stick to.
- Check the exit fee for each fuel. Leaving early can cost a fee for electricity and for gas. Find the amount before you sign.
- Compare the daily standing charge. It applies to each fuel, even on days you use no energy. Compare the total, not just the unit rate.
- Choose Direct Debit. It is the cheapest way to pay on the price cap, so ask for it when you sign.
Straight answers
Questions people ask
- Is it better to fix my energy now?
- It depends on whether the fixed rates beat the current price cap rates shown on this page. A fixed tariff holds your unit rates and standing charges, usually for 12 to 24 months. Compare the two sets of rates, then pick the option that costs less over the deal.
- What happens when a fixed tariff ends?
- When a fixed tariff ends, its fixed unit rates and standing charges end with it. Fixed deals usually last 12 to 24 months, so note your end date now. Before then, check the current cap rates shown on this page and compare your options.
- Can I leave a fixed energy deal early?
- Yes, you can, but you may pay an exit fee. Leaving a fixed deal early can cost an exit fee for each fuel, so check that fee before you switch. Fixed deals usually run for 12 to 24 months, so weigh the fee against any saving.