Is a 2-year fixed energy tariff cheaper than the price cap?
Compare whole-of-market fixed deals vs the Ofgem price cap for your home, and see whether a 24-month fix could cut your bills or add risk.
- Personalised comparison using your postcode and usage
- Check estimated monthly cost vs the cap (and what happens when the cap changes)
- See exit fees, unit rates and standing charges clearly before you switch
Home energy only. Estimates depend on your region, meter type and usage. Always check tariff terms and any exit fees before switching.
The short answer: sometimes — but it depends on rates, fees and future cap changes
A 2-year fixed energy tariff can be cheaper than the Ofgem price cap if the supplier’s unit rates and standing charges work out lower for your region and meter type — and if any exit fees don’t wipe out the saving. However, a long fix can also cost more if the cap falls or if your circumstances change.
What most people miss: the price cap is not a cap on your total bill. It limits the maximum unit rate and standing charge for typical tariffs. Your actual bill depends on how much energy you use.
Use the form to get a quick, whole-of-market comparison for your home and see the estimated cost difference.
What you’ll see in your results
- Estimated monthly and annual cost based on typical usage for your household size
- Unit rates (p/kWh) and standing charges (p/day)
- Tariff length, any exit fee, and whether it’s fixed or variable
- Options for electric-only, gas-only and dual fuel
Get your comparison
Fill in a few details and we’ll show suitable home energy tariffs available for your postcode, including 2-year fixes.
Tip: If you’re already on a fixed tariff, check your exit fee and end date. A small saving on unit rate might not be worth a large fee.
Quick glossary (so the comparison makes sense)
- Unit rate: what you pay per kWh of gas or electricity.
- Standing charge: a daily fixed cost for having a supply.
- Price cap: Ofgem’s limit on unit rates and standing charges for typical standard variable tariffs (SVTs) in Great Britain.
- Fixed tariff: rates are locked for a set period (e.g. 24 months), often with exit fees.
When a 2-year fix can be cheaper than the price cap
There isn’t one right answer for everyone. A 24-month fixed deal is more likely to beat the cap when the numbers line up for your home and you value stability.
You find rates below the cap today
Some fixed tariffs price under the current cap-equivalent level for your region. If your quoted unit rates + standing charges are lower, you can save straight away.
You want predictable bills
Fixing can reduce the stress of cap changes. While your usage still changes your bill, the price per unit stays the same for the fixed period.
You plan to stay put
Two-year fixes can come with exit fees. If you’re likely to move home, switch again soon, or pay down debt before changing, flexibility may matter more.
You’re coming off an expensive tariff
If you’re on an SVT or an older fix, comparing now can uncover newer deals with better rates, especially if your supplier hasn’t automatically moved you to a competitive option.
You can avoid exit fees
Many suppliers allow you to switch near the end of a fixed tariff without paying an exit fee. Timing your move can make the saving real.
Your tariff fits your meter and payment method
Rates can differ for credit, direct debit and prepayment, plus smart vs traditional meters. The cheapest option for one setup may not be for another.
Practical rule: If a 2-year fixed tariff is only slightly cheaper than the cap today, consider whether a future cap drop (or an exit fee) could erase the benefit. Your comparison results should show the key numbers to check.
Price cap vs 2-year fixed tariffs: what’s the difference?
To decide whether a 24-month fix is cheaper, you need to compare like-for-like: unit rates, standing charges, tariff terms and how often the cap changes.
| Feature | Ofgem price cap (SVT typical) | 2-year fixed tariff |
|---|---|---|
| What’s capped/fixed | Maximum unit rate and standing charge suppliers can charge on capped tariffs. | Your tariff’s unit rate and standing charge are locked for the fixed term. |
| How often it can change | Cap level is reviewed periodically; your SVT price can change when the cap changes. | Doesn’t change during the fixed period (unless stated otherwise in terms, e.g. VAT or policy changes). |
| Budget certainty | Medium: price follows the cap; bills still vary with usage. | High: your rates remain stable; bills still vary with usage. |
| Exit fees | Usually none. | Common on longer fixes; check the amount and when it applies. |
| Who it suits | People who prefer flexibility or are waiting for better fixed deals. | People who want stability and are happy committing for longer. |
How to judge “cheaper” properly
- Compare the full tariff costs, not just headlines. Look at electricity and gas unit rates plus standing charges (and whether it’s dual fuel or separate contracts).
- Use your likely usage. A low standing charge with a slightly higher unit rate can suit high users, while the opposite can suit low users.
- Factor in exit fees. If you might switch within 24 months, consider the “worst case” where you pay the fee.
- Think about cap movement risk. If the cap falls, you could end up paying more on a long fix; if it rises, fixing can protect you.
- Check what happens at the end. Many fixed tariffs move to a supplier’s SVT after expiry—set a reminder to compare again.
Important: The Ofgem price cap applies in Great Britain (England, Scotland and Wales). Northern Ireland has a different energy market and regulator arrangements, so prices and tariff availability can differ.
Costs, exit fees and common pitfalls (read before you fix for 2 years)
1) Exit fees can turn a saving into a loss
Many 24-month fixes include an exit fee per fuel. If you might move home, change payment method, or want to switch early, check:
- How much the exit fee is (per fuel)
- Whether it reduces near the end of the contract
- Whether you can switch in the last few weeks without a fee
2) Standing charge differences matter
A “cheaper” unit rate can be offset by a higher standing charge. This is especially important for:
- Small flats and low-usage households
- Second homes (where allowed) or long periods away
- Electric-only homes using little day-to-day electricity
3) “Cheaper than the cap” needs a timeframe
A fix can be cheaper today, but the cap can move. A two-year deal is a bet on stability. If you’re unsure, compare 1-year fixes and no-exit-fee options too.
4) Watch for end-of-tariff rollovers
When a fixed deal ends, many suppliers move you to their standard variable tariff. That price will typically track the cap level. Set a reminder to compare again near the end date to avoid overpaying.
A simple check you can do in 30 seconds
If the estimated annual saving from a 2-year fix is less than the exit fees you’d pay to leave early, ask yourself whether you’re happy to stay for the full term. If not, consider flexible tariffs or shorter fixes.
Why your region and meter type change the answer
Energy prices aren’t the same everywhere. The price cap varies by region, and suppliers set tariffs that reflect network costs and other factors. That’s why two households can get different results for the same tariff name.
Regional pricing
Your distribution region affects standing charges and unit rates. Always compare using your postcode rather than national averages.
Payment method
Direct debit, credit and prepayment can be priced differently. If you’re changing how you pay, the “cheapest” 2-year fix may change too.
Smart vs traditional meters
Some tariffs are only available with a smart meter, and time-of-use options can benefit households with flexible usage patterns.
Make it specific to your home
A whole-of-market comparison using your postcode is the quickest way to see whether a 2-year fix beats the current cap-equivalent pricing for your area.
Compare deals for my postcodeFAQs: 2-year fixed tariffs and the price cap
Is the price cap the cheapest tariff?
No. The cap limits what suppliers can charge for certain variable tariffs, but fixed tariffs can be below that level. The cheapest option depends on your region, meter type and usage.
Does a 2-year fix protect me if the cap rises?
Usually, yes: your unit rates and standing charges stay fixed for the term. If the cap rises and SVTs become more expensive, a fixed deal can look better in hindsight.
What if the cap falls while I’m fixed?
You could pay more than someone on a capped SVT. Switching out early may mean paying an exit fee, so consider the trade-off before committing to 24 months.
Are 2-year fixed tariffs suitable for prepayment meters?
Sometimes. Availability can be more limited, and pricing can differ. A whole-of-market comparison helps you see what’s actually available for your meter and postcode.
Will fixing reduce my bill automatically?
Not automatically. Fixing only locks the rates; your bill still depends on usage. The best approach is to compare costs and then manage consumption where you can.
How quickly can I switch?
Switching time varies by supplier and circumstances. Your new supplier will normally handle the process, and you’ll keep your supply during the switch.
Not sure what you’re on today? Many households are on a standard variable tariff (often tracked to the cap) after a fix ends. Check your latest bill or online account, then run a quick comparison.
Trusted, whole-of-market comparison for UK homes
Clear tariff details
We focus on the numbers that matter: unit rates, standing charges, term length and exit fees—so you can decide if a 2-year fix truly beats the cap for your home.
Home-focused support
Comparisons tailored to domestic customers, including common scenarios like moving home, coming to the end of a fix, or switching from a supplier’s SVT.
No disruption to supply
Switching supplier shouldn’t interrupt your energy. Your supply continues as normal while the admin changes in the background.
What customers say
“The comparison made it clear how the standing charge changed the total cost. I chose a fix that worked out cheaper for my flat.”
“I was about to lock in for two years, but the exit fee changed my mind. The breakdown helped me pick a more flexible option.”
Testimonials are illustrative of typical experiences; savings vary by tariff, region and household usage.
See if a 2-year fix beats the price cap for your postcode
Get a whole-of-market comparison for your home and check the rates, standing charges and exit fees in one place.
Remember: the best tariff is the one that fits your usage, not just the headline rate.
Before you commit to 24 months, check:
- Exit fee per fuel
- Standing charge
- End-of-tariff rollover
- Whether your meter type is eligible
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