Cheapest fixed energy tariff under the October price cap (UK)
Find out whether a fixed deal is genuinely below the October Ofgem price cap for your home, and compare whole-of-market options by postcode, meter type and payment method.
- Clear checks for whether a fix is under the cap (like-for-like)
- UK-specific caveats: standing charges, region, meter type, payment method, exit fees
- Two realistic cost scenarios with numbers and assumptions
Price cap figures and tariffs change. Results depend on your region, meter type and payment method. We show estimated costs and key terms before you switch.
Fast answer: what counts as the cheapest fixed tariff under the October cap?
In the UK, a fixed tariff is only meaningfully “under the October price cap” if its total estimated annual cost (unit rates and standing charges) comes out lower than the cap level for your region, meter type and payment method—using the same consumption assumptions.
Important: The Ofgem price cap is not a cap on your total bill and it doesn’t apply to fixed tariffs. It limits what suppliers can charge on standard variable tariffs (including default tariffs), based on typical use.
Key takeaways (UK-specific)
- Like-for-like matters: compare your exact setup (single-rate vs Economy 7; credit vs prepay; smart vs traditional meter where relevant).
- Standing charges can wipe out a “cheap” unit rate, especially for low users and flats.
- Exit fees and price change clauses can matter more than a tiny p/kWh difference.
- The “cheapest” fixed tariff for you may be different from a headline deal advertised nationally because tariffs vary by region.
If you want the quickest safe next step
Use your postcode and meter type to compare whole-of-market fixed tariffs and see estimated annual costs before you switch.
If you’re checking an offer you’ve been sent
Ask for (or look up) the unit rates, standing charges, term length, and exit fees. Then compare to the cap on a like-for-like basis.
Compare fixed tariffs under the cap (for your home)
The cheapest fixed tariff under the October cap depends on your postcode region, payment method (monthly Direct Debit vs prepay), and meter type (single rate vs Economy 7). Use the form to get a tailored view of what’s available.
What you’ll see: estimated annual cost, unit rates, standing charges, tariff length, exit fees, and key eligibility notes (e.g., Economy 7 only, smart prepay, new customers).
When a fixed deal is most likely to beat the cap
- You’re on a standard variable tariff and you can find a fix with a lower estimated annual cost after standing charges.
- You can pay by monthly Direct Debit (often the best-priced payment method, though not always).
- You’re willing to commit for 12 months (or longer) and you’re comfortable with potential exit fees.
When it may not be worth fixing
- You expect to move home soon, or you’ll likely switch again quickly (exit fees can outweigh savings).
- You’re a very low user (standing charges dominate, so “cheap unit rates” may not help much).
- You have Economy 7 but most of your usage is daytime (the day rate can be much higher).
Get a fixed tariff quote
Trust note: EnergyPlus is whole-of-market. Availability varies by supplier and eligibility (credit checks, smart meter requirements for some tariffs, regional availability, and payment method).
How to check a fixed tariff is genuinely “under the October cap”
- Confirm your comparison baseline: the October Ofgem price cap applies to standard variable tariffs. It’s published by Ofgem and varies by region, payment method, and meter type.
- Collect the tariff facts: electricity unit rate(s), gas unit rate, electricity standing charge, gas standing charge, tariff end date, and any exit fees.
- Compare on total estimated annual cost: use the same annual consumption figures for both the cap baseline and the fixed deal (see our assumptions below).
- Check the fine print: look for “fixed unit rates and standing charges”, any price adjustment clauses, and whether the deal is for new customers only.
- Sanity-check standing charges: if standing charges are high, the deal may be worse for low users even if the unit rate looks great.
Quick rule of thumb: a fixed tariff can be “under the cap” in one region and “over the cap” in another because regional standing charges and unit rates differ.
Comparison table: what to look at (not just p/kWh)
Use this table to compare a fixed deal against your current tariff (often SVT) and the October cap baseline. It’s designed to prevent the most common “looks cheap, costs more” mistakes.
| What you’re comparing | Why it matters | What to do |
|---|---|---|
| Standing charges (gas & electric) | You pay these daily regardless of use. They can make a “cheap” tariff expensive for low usage. | Compare the daily p/day for both fuels and estimate annual impact (p/day × 365). |
| Unit rates (p/kWh) | This is where most of your bill usually sits—especially for higher-use homes. | Multiply your estimated annual kWh by the unit rate(s) and add standing charges. |
| Meter type (single rate vs Economy 7) | Economy 7 can be cheaper only if enough usage is overnight. | If on E7, check day and night rates and your typical split (e.g., 65/35). |
| Payment method | Prices can differ for Direct Debit vs prepay in some cases and tariffs may be restricted. | Compare like-for-like. Don’t compare a DD quote to a prepay baseline. |
| Exit fees & contract length | A tariff can be cheaper per month but costly to leave if prices drop or you move. | Check fees per fuel and whether they apply per meter / per property. |
| Eligibility (new customer, smart meter, online only) | Some of the cheapest fixes have eligibility rules that can block switching. | Confirm requirements before applying (especially smart prepay and export tariffs). |
Decision checklist: a fixed tariff under the cap is likely right for you if…
- You want bill predictability for the fixed term.
- The quote shows a lower estimated annual cost than your current SVT.
- Standing charges are reasonable for your usage level.
- You’re comfortable with any exit fees and contract length.
It may not suit you if…
- You plan to switch again soon (or may move) and the exit fees are high.
- You’re a very low user and the tariff has high standing charges.
- You have Economy 7 but don’t use much electricity overnight.
- The tariff is “fixed” but includes a clause that can still change charges.
Two realistic scenarios (with numbers)
These are illustrative examples to show how “under the cap” can work in practice. Your actual rates depend on region and tariff terms.
Scenario A: typical dual-fuel household (Direct Debit)
- Assumptions
- Medium-use home: 2,700 kWh electricity + 11,500 kWh gas per year (Ofgem’s typical domestic consumption values).
- Example fixed quote: electric 23.0p/kWh + 52p/day; gas 5.9p/kWh + 29p/day.
- Estimated annual cost (illustrative)
- Electric usage: 2,700 × £0.23 = £621
- Electric standing: 365 × £0.52 = £190
- Gas usage: 11,500 × £0.059 = £679
- Gas standing: 365 × £0.29 = £106
- Total estimated: £621 + £190 + £679 + £106 = £1,596/year
If the October cap baseline for that region/meter/payment works out higher than £1,596 for the same usage, this fix would be “under the cap” on a like-for-like basis.
Scenario B: low-use flat (standing charges dominate)
- Assumptions
- Low-use home: 1,600 kWh electricity + 6,000 kWh gas per year.
- Two example fixed quotes (illustrative):
- Deal 1 (low unit, high standing): electric 22.0p/kWh + 62p/day; gas 5.7p/kWh + 35p/day.
- Deal 2 (slightly higher unit, lower standing): electric 23.2p/kWh + 49p/day; gas 6.1p/kWh + 27p/day.
- Estimated annual totals
- Deal 1: (1,600×£0.22)+(365×£0.62) + (6,000×£0.057)+(365×£0.35) ≈ £1,052/year
- Deal 2: (1,600×£0.232)+(365×£0.49) + (6,000×£0.061)+(365×£0.27) ≈ £1,012/year
What this shows: for lower usage, a tariff with lower standing charges can win even if the unit rate is slightly higher.
Numbers caveat: Examples exclude any one-off credits, sign-up bonuses, or additional services. VAT is typically included in domestic tariffs; always check the tariff information label or quote breakdown.
Costs, exclusions and common pitfalls (UK)
This is where many “cheapest fixed tariff” comparisons go wrong. Use these checks to avoid switching into a deal that looks good on a headline rate but doesn’t fit your household.
1) Exit fees and switching again
Many fixed deals include exit fees (often per fuel). If wholesale prices fall or a better deal appears, exit fees can reduce or wipe out the benefit of switching.
Tip: If you’re likely to move within the term, check what happens when you move (some suppliers let you take the tariff; others may require a new contract).
2) Standing charges are a big deal
If you live alone, are rarely at home, or have electric-only heating efficiency measures, standing charges can form a surprisingly large share of your annual cost.
Quick check: Multiply standing charge (p/day) by 365 and compare across tariffs before you get excited by a low p/kWh.
3) Economy 7 misunderstandings
Economy 7 can be great if you use storage heating or run appliances overnight. If most usage is daytime, the higher day rate can outweigh cheaper night usage.
Tip: If you don’t know your day/night split, check a few recent bills or your smart meter app (if you have one).
4) Payment method and eligibility
Some tariffs are available only if you pay by monthly Direct Debit, manage your account online, or meet certain eligibility criteria (including credit checks).
5) “Fixed” doesn’t always mean everything is fixed
Most fixed tariffs lock unit rates and standing charges for a term, but always read the tariff wording. Some may allow changes in specific circumstances.
6) Timing your switch
Switching usually completes within days, but can take longer in certain cases (meter issues, debt, complex setups). Don’t leave it to the last moment if you’re trying to lock in a rate.
Reminder: The cap changes by period. A fixed tariff that’s “under the cap” in October may not be under a future cap level. Focus on what you’ll pay over your likely time on the tariff, not only the headline comparison date.
FAQs: cheapest fixed tariffs vs the October price cap
Does the Ofgem price cap apply to fixed tariffs?
No. The price cap limits charges on standard variable tariffs (including default tariffs). Fixed tariffs can be priced above or below the cap. That’s why it’s important to compare the estimated annual cost like-for-like.
Why do “cheapest fixed tariffs” differ by postcode?
Energy prices vary by region because of network costs and how charges are set. Suppliers publish different unit rates and standing charges across regions, so a tariff that’s cheapest in one area might not be in another.
Can a tariff be under the cap for electricity but not gas?
Yes. Dual-fuel comparisons can be misleading because gas and electricity rates (and standing charges) move differently. Always check the total for both fuels if you’re switching both, and watch for separate exit fees.
What if I have a prepayment meter—can I still get a fixed tariff?
Sometimes, yes—particularly with smart prepayment offers. Availability varies by supplier and may depend on your meter type and any outstanding balance. Compare prepay tariffs like-for-like because pricing and eligibility can differ from Direct Debit deals.
Is it better to fix for 12 months or longer?
It depends on your priorities. Longer fixes can give more certainty but may have higher exit fees or keep you locked in if prices fall. For many households, the best choice is the tariff with the lowest estimated annual cost that you’re comfortable staying on for most of the term.
Do I need a smart meter to get the cheapest fixed tariff?
Not always. Some tariffs are available to any meter type; others are linked to smart features (like smart prepay or time-of-use pricing). If a deal requires a smart meter, the supplier should make that clear before you switch.
How do I know my current tariff and rates?
Check your latest bill (or online account) for the tariff name, unit rates and standing charges. If you can’t find them, your supplier can provide your tariff information. Having the rates makes it easier to judge whether a fixed deal is truly better for you.
Could I pay more even if the tariff is “under the cap”?
Yes. The cap comparison is based on an assumed level of consumption. If your usage is higher (or your day/night split differs on Economy 7), your actual cost can be higher. That’s why we focus on estimated annual cost using your likely consumption when possible.
Trust, methodology and sources
Page details
- Written by
- EnergyPlus Editorial Team
- Reviewed by
- Energy Specialist
- Last updated
- June 2026
How we assess “cheapest fixed tariff under the October cap”
We assess affordability using a like-for-like estimated annual cost approach, because UK tariffs are made up of unit rates and standing charges, and the Ofgem cap is expressed through typical-use pricing.
- We compare totals, not headlines: unit rates + standing charges across gas and electricity.
- We account for household setup: postcode region, meter type (single rate vs Economy 7), and payment method (Direct Debit vs prepay where applicable).
- We use transparent assumptions: examples use Ofgem’s typical domestic consumption values (TDCVs) unless otherwise stated.
- We flag key terms: exit fees, tariff length, eligibility restrictions, and any non-standard conditions.
Limitations: Tariffs can change daily; availability can be supplier- and customer-specific (credit checks, meter compatibility, and account history). The “cheapest” option may not be available to every household at the time of comparison.
Check today’s fixed tariffs under the cap for your postcode
Get a tailored comparison that includes standing charges, exit fees and eligibility notes—so you can switch with confidence.
Note: The secondary button links to FAQs. If you prefer to speak to your current supplier about your existing tariff, they can confirm your current rates and contract status.
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