Fixed vs variable energy tariffs (2026)
With the price cap rising 13% in July, should you fix your rate or stay variable? Here is how to decide - and compare deals.
Compare dealsWhich should you choose?
A fixed tariff locks your unit rates and standing charge for the term, giving certainty. A variable tariff follows the price cap, so it falls if wholesale prices drop but rises when the cap goes up - as it does on 1 July 2026.
With the cap increasing and competitive fixes available below it, many households are choosing to fix. Compare the whole market on your usage to see your best option.
Fixed vs variable at a glance
| Feature | Fixed | Variable |
|---|---|---|
| Rate | Locked for the term | Tracks the price cap |
| If the cap rises | Protected | Bill goes up (e.g. +13% in July) |
| If the cap falls | No benefit unless you switch | Bill falls automatically |
| Exit fees | Some have none | None |
FAQs
Fixed or variable in 2026?
With the cap up 13% from 1 July 2026, a fixed deal below the cap gives certainty and can save money; variable benefits only if prices fall later.
Is a fixed tariff cheaper than the cap?
Some are - several fixes are priced below the cap, with no exit fees, so you can fix and still leave for a better deal.
What happens to variable after July?
A standard variable tariff follows the cap, which rises 13% on 1 July 2026, so variable bills go up unless wholesale prices ease.
See if fixing saves you money
Compare fixed and variable deals on your usage today.
No obligation. Reviewed 5 June 2026.
Back to Energy Comparison