Fix Energy Prices: Should You Lock In Before the Cap?

To fix energy prices means to lock in the unit rate you pay for gas and electricity, plus your standing charge, for a set contract term, usually 12 or 24 months. A fixed tariff does not move with Ofgem’s quarterly price cap, so the price you agree stays the same until the fix ends, whether the cap rises or falls.

This matters now because the energy price cap rose 13% to £1,862 a year for a typical dual-fuel household paying by Direct Debit from 1 July to 30 September 2026, according to Ofgem. If you are on a standard variable tariff sitting at or near that cap, a fixed deal below your expected variable cost protects you from the next quarterly move.

Free Price Compare sources its energy data from Ofgem publications and supplier tariff information, and compares deals across UK household suppliers so you can see how a fix stacks up against the cap.

Last updated: July 2026

Written by the Free Price Compare editorial team | Reviewed July 2026

Should you fix energy prices now or not?

Fixing your energy prices is worth considering when you can find a fixed tariff that’s cheaper than you expect to pay on a standard variable tariff over the same period, and you value price certainty over the chance that prices could fall. A fixed deal removes the quarterly uncertainty of Ofgem’s price cap, which increased to £1,862 a year for a typical dual-fuel household from 1 July 2026, up 13% from £1,641 under the previous benchmark (Ofgem, 27 May 2026). If the price cap later falls below your fixed tariff, however, you’ll pay more than you would have on the variable tariff. There is no guaranteed right answer because nobody knows how future price cap periods will change, so compare the cost difference based on your expected usage and check whether the tariff includes an exit fee. (Ofgem, 27 May 2026).

Our guide on the energy price cap versus a fixed tariff walks through this decision in more detail with worked comparisons.

Does the price cap affect me if I’m on a fixed tariff?

The energy price cap does not apply to fixed tariffs. Ofgem’s price cap sets the maximum unit rates and standing charges a supplier can charge on default and standard variable tariffs only, so a customer on a fixed deal keeps their agreed rates until the contract ends, regardless of whether the cap rises or falls. Octopus Energy confirms that customers on a fixed tariff keep the same rate until contract end, while variable and variable smart tariffs move with the cap. This is the whole point of fixing: it decouples your price from Ofgem’s quarterly reviews. The cap is also not a limit on your total bill, it caps rates, so your actual annual cost still depends entirely on how much gas and electricity you use.

You can read how this works in practice in our explainer on how fixed tariff pricing is affected by the price cap.

Compare fixed energy deals against the cap

Will fixing actually save me money versus the cap?

Fixing your energy prices saves money only if the fixed tariff’s unit rates and standing charges work out cheaper over the length of the contract than staying on a standard variable tariff, based on your own energy use. Under the 1 July to 30 September 2026 price cap, the Great Britain average default electricity rate is 26.11p per kWh with a 57.19p daily standing charge, while gas is 7.33p per kWh with a 29.04p daily standing charge, according to Ofgem. Compare a fixed tariff’s unit rates and standing charges directly with those averages. A tariff that’s below today’s cap saves money immediately, while one that’s slightly above it may still prove cheaper overall if future price cap periods rise during your fixed term. Because prices vary by region and supplier, the most reliable comparison is to enter your postcode and annual usage into a comparison service and compare the estimated annual cost in pounds rather than relying on headline savings claims.

Figures are indicative and may change.

The typical bill assumes typical usage; a smaller household using less will pay well below £1,862 even on the cap. To find deals priced under the cap for your area, see our list of the cheapest dual-fuel energy tariffs.

Check what you’d pay on a fix

Compare fixed tariffs against the current cap for your postcode and usage.

Compare energy now

Why are energy prices going up in July 2026?

Energy prices rose in July 2026 mainly because of higher wholesale gas costs feeding into Ofgem’s cap calculation. Ofgem raised the price cap by 13% for 1 July to 30 September 2026, adding around £221 a year to a typical bill, or about £18 a month if sustained across a full year (Ofgem, 27 May 2026). The rise is driven mainly by higher wholesale gas costs feeding into Ofgem’s cap calculation, which is why gas prices can influence electricity costs as well. Because the cap is recalculated every quarter using updated wholesale values, this rise is not necessarily permanent, and the direction of the October 2026 and January 2027 caps is uncertain.

We covered the mechanics of an earlier cap change in our breakdown of the 2025 price cap rise, and the same methodology applies to the July 2026 period.

Is it better to fix for 12 or 24 months?

Choosing between a 12-month and a 24-month fix depends on how much price certainty you want against the risk of being locked above a falling cap. A 24-month fix gives longer protection from cap rises and shields you through two winters, which suits households that want budgeting certainty and expect prices to stay high or climb. A 12-month fix keeps you flexible, so if the cap falls sharply you can re-fix or return to a cheaper variable rate sooner. Where two-year deals are only marginally more expensive than one-year deals, the longer term can be the more comfortable choice for a bill-conscious household; where the two-year rate carries a clear premium, you are effectively paying for insurance against future rises. Weigh the price gap between the two terms against your own view of where wholesale gas prices are heading, and always check the exit fee before committing to a longer lock-in.

See the cheapest fixed price energy deals

Should I abandon a cheaper fix I’m already on?

Leaving a fixed deal you are already on rarely makes sense if your current fixed rate is lower than any new fix on offer, because the deal you hold is already protecting you from the cap. If your existing fix sits below the July 2026 cap and below available new fixes, staying put is usually the cheaper option, even with prices rising around you. The exception is when your current fix is ending soon and you want to lock in a new rate before it expires and you roll onto the standard variable tariff. Before switching, add up any exit fee your current deal charges, a typical fixed tariff applies an exit fee per fuel if you leave early, so a small headline saving on a new deal can be cancelled out. Switching for a difference of only a few pounds a month while paying an exit fee is usually not worth it.

If you are with a specific supplier, check the terms first, for example our guide on British Gas exit fees and switching explains how early-exit charges are applied.

How do I know which tariff I’m currently on?

You can find out which tariff you are on by checking a recent energy bill, your online account, or the annual statement your supplier sends. The tariff name appears near the top of the bill or statement, and the wording tells you the type: a “standard variable” or “default” tariff moves with Ofgem’s price cap every quarter, while a “fixed” tariff names an end date after which you revert to the variable tariff. If your bill shows an end date and a fixed price guarantee, you are on a fix; if it does not and your rates track the cap, you are on the standard variable tariff. Households that have never actively switched are almost always on the default tariff, which is the one exposed to every cap change. Knowing your tariff type is the first step, because the fixing decision only applies to the roughly 19 million homes on default and variable deals that the cap affects (Ofgem).

For a fuller checklist of what to review before you switch, see our guide on what matters beyond just price on energy tariffs.

Find your best energy tariff

What should you check before fixing energy prices?

Before fixing energy prices, check the unit rates and standing charges, the exit fee, the contract length, and how the fixed cost compares against the cap for your usage. A low headline price can hide a high standing charge, and a long fix can trap you above a falling cap if there is a steep exit fee.

• The fixed unit rates and standing charges for both gas and electricity, compared against the current cap rates of 26.11p per kWh electricity and 7.33p per kWh gas.
• The exit fee, usually charged per fuel, so you know the cost of leaving early if the cap falls below your fix.
• The contract length and end date, so you are not surprised by rolling onto the standard variable tariff.
• Whether the deal is dual-fuel or single-fuel, and whether you pay by Direct Debit, which usually attracts the lowest rates.
• Your annual usage in kWh, so the comparison reflects your household rather than the typical figure.

To sanity-check against variable rates, our lists of the cheapest electricity tariffs and cheapest gas tariffs show current single-fuel options alongside dual-fuel deals.

• UK Energy Price Cap Rise April 2025: Key Details & Savings
• How Fixed Tariff Pricing is Affected by the Energy Price Cap
• Dual Fuel Energy Tariffs – Top 20 Cheapest Deals UK
• Compare Electricity Tariffs – Top 20 Cheapest Deals
• British Gas Exit Fees & Switching Guide: Avoid Extra Charges

Information correct as of 27 July 2026. Prices, tariffs, policy details and providers change frequently, so please check the latest details before making a decision. This article is for general information only and does not constitute financial advice. Free Price Compare is authorised and regulated by the Financial Conduct Authority (FCA).