Cheapest 2-year & long fixed energy deals in the UK (July 2026)
With the Ofgem price cap rose to £1,862 a year from 1 July 2026, the leading 18-month and 2-year fixes still beat the cap. Compare So Energy, Outfox and OVO, see exit fees, and get a whole-of-market quote for your postcode and meter.
- Best 18-month fixes: So Energy £1,612 and Outfox £1,624; best 2-year fix: OVO £1,705
- All beat the £1,862 July 2026 price cap - check exit fees before you commit
- Get an estimated quote in minutes (no obligation)
Prices are typical dual-fuel direct-debit estimates and vary by region, payment method, meter type and supplier terms. Always check the tariff information label before switching.
Fast answer: the cheapest sub-cap fixes in July 2026
For a typical dual-fuel direct-debit household, the cheapest 18-month fixes right now are So Energy 18-month (£1,612) and Outfox the Market 18-month (£1,624). The cheapest true 2-year fix is OVO 2-year Fixed (£1,705). All three beat the £1,862 Ofgem price cap that applies from 1 July 2026. Prices vary by region, payment method, meter type and your annual kWh, so there isn't one universal cheapest deal for everyone - compare for your postcode.
Cheapest 18-month fixes
- So Energy 18-month - £1,612/yr
- Outfox the Market 18-month - £1,624/yr
- Both below the £1,862 July cap
Cheapest 2-year fix
- OVO 2-year Fixed - £1,705/yr
- Locks today's price for 24 months
- Check the per-fuel exit fee
12-month context
- E.ON Next Fixed v53 - £1,602 (cheapest 12M)
- Octopus 12M Fixed v18 - £1,632 (zero exit fee)
- EDF Essentials Plus 12M - £1,649
Editor's note: The price cap is a unit-rate cap on default tariffs, not a cap on fixed deals or a total-bill cap. A fix can sit above or below the cap-equivalent level; right now the leading fixes are below it. "Cheapest" here means the lowest total estimated annual cost for your usage.
Best fixed energy deals, July 2026 (vs the £1,862 July cap)
These are leading whole-of-market fixes for a typical dual-fuel direct-debit home. Figures are estimated typical annual costs and undercut the new £1,862 Ofgem cap (1 July - 30 Sep 2026, announced 27 May 2026). The cap in force until 30 June 2026 is £1,649.
| Tariff | Term | Typical annual cost | Exit fee | vs £1,862 cap |
|---|---|---|---|---|
| E.ON Next Fixed v53 | 12 months | £1,602 | £25/fuel | -£260 |
| So Energy 18-month | 18 months | £1,612 | Check label | -£250 |
| Outfox the Market 18-month | 18 months | £1,624 | Check label | -£238 |
| Octopus 12M Fixed v18 | 12 months | £1,632 | £0 (zero) | -£230 |
| EDF Essentials Plus 12M | 12 months | £1,649 | £25/fuel | -£213 |
| OVO 2-year Fixed | 24 months | £1,705 | Check label | -£157 |
| British Gas Fixed | 12 months | £1,719 | Check label | -£143 |
Exit fees as a guide: Octopus £0; E.ON Next and EDF £25 per fuel (about £50 for a dual-fuel home). "Check label" means confirm the current per-fuel exit fee on the tariff information label before switching. Annual costs are typical dual-fuel direct-debit estimates and change as suppliers update tariffs.
Find the cheapest 18-month or 2-year fix for your home
We'll show available fixed tariffs you may be eligible for, then rank them by estimated annual cost. If you have a recent bill, you'll get a more accurate estimate.
To get the most accurate "cheapest" result:
- Use the bill payer's details (or the named account holder)
- Enter the postcode for the supply address (not your mailing address)
- If you're on Economy 7 or prepay, mention it when you speak to us after submitting
What happens after you submit
- We match your postcode to your regional price area and show eligible 18-month and two-year fixes.
- We sort by estimated annual cost and highlight key terms (standing charge, exit fees).
- You choose whether to proceed. Switching is free and typically completes in around 5 working days; you can switch even without a smart meter.
Get your quote (no obligation)
Should you fix for 2 years in 2026?
A 2-year fix like OVO at £1,705 locks in a price roughly 8% below the £1,862 July cap for a full 24 months. With the cap up 13% from July - driven by higher wholesale gas prices - longer certainty has clear appeal. But it isn't automatically the cheapest route: an 18-month fix (So Energy £1,612, Outfox £1,624) or even a 12-month fix (E.ON Next v53 £1,602, Octopus 12M £1,632 with zero exit fee) costs less per year today. The trade-off is term length versus flexibility and exit-fee exposure.
A 2-year fix may suit you if
- You want the longest budgeting certainty and to stop tracking the market
- You expect wholesale gas (and the cap) to stay high or rise further
- You'll stay in the property for the full term
A shorter fix may suit you if
- You want the lowest annual cost today (12-month fixes are cheaper now)
- You might move home or want flexibility - Octopus 12M has a zero exit fee
- You expect prices to fall and don't want to be tied in with exit fees
Exit-fee reality check: a 2-year fix only pays off if you keep it. If you leave early, most longer fixes charge a per-fuel exit fee (as a guide, E.ON Next and EDF charge about £25 per fuel, roughly £50 dual fuel; Octopus 12M charges £0). Weigh any saving against the fee before locking in for 24 months.
How to choose the cheapest fixed energy deal (UK)
A fix can be "cheapest" on paper but still cost more for your household if the standing charge is high or if you use electricity mostly at night (Economy 7). Here's a practical way to compare.
Step 1: Compare using your kWh (not just £/month)
Monthly Direct Debit is often set to smooth payments across the year. Two tariffs with the same £/month can still differ once a supplier recalculates based on readings. Use annual consumption in kWh from your bill where possible.
Step 2: Check standing charges (especially for low use)
Standing charges vary by region. For reference, the July 2026 cap sets electricity standing charge at 57.19p/day and gas at 29.04p/day on average. A slightly higher unit rate can be cheaper overall if the standing charge is lower.
Step 3: Confirm your meter type and tariff suitability
- Single rate: one electricity unit rate all day
- Economy 7: day and night rates (best if you use a large share overnight)
- Prepayment: prices and eligibility can differ; some fixes exclude prepay meters
Step 4: Read the key terms: exit fees, term length, billing
Most fixed tariffs include exit fees (Octopus 12M is a notable £0 exception). Check whether they apply per fuel and whether they reduce near the end of the term. Also confirm billing and payment requirements (e.g., online-only or Direct Debit only) and the fixed term - 12, 18 or 24 months.
Two realistic scenarios (with numbers)
These examples show why the cheapest unit rate isn't always the cheapest bill. Figures are illustrative and exclude any discounts/cashback; your actual prices depend on your region and tariff.
Scenario A: Low-use flat, single rate electricity
- Assumed use: 1,800 kWh electricity/year, no gas
- Tariff 1: 22p/kWh + 70p/day standing
- Tariff 2: 24p/kWh + 50p/day standing
Estimated annual cost: Tariff 1 = (1,800×£0.22) + (365×£0.70) ≈ £651. Tariff 2 = (1,800×£0.24) + (365×£0.50) ≈ £615. Cheaper overall: Tariff 2 (despite the higher unit rate).
Scenario B: Family home, dual fuel, higher use
- Assumed use: 3,100 kWh electricity/year and 12,000 kWh gas/year
- Deal A: electricity 25p/kWh + 60p/day; gas 6.5p/kWh + 33p/day
- Deal B: electricity 27p/kWh + 50p/day; gas 6.2p/kWh + 40p/day
Estimated annual cost: Deal A ≈ £1,634. Deal B ≈ £1,656. Cheaper overall: Deal A (lower combined standing charges outweighed the slightly higher gas unit rate in Deal B).
Quick comparison: what you should look at (before picking "cheapest")
| Check | Why it affects the cheapest deal | Best for | Watch out for |
|---|---|---|---|
| Estimated annual cost | Combines unit rates + standing charges using your kWh. | Most households | If your kWh estimate is off, ranking can change. |
| Standing charge | You pay it every day regardless of use. | Low-use homes | Higher standing charge can erase "cheap" unit rates. |
| Meter type | Economy 7 and prepay are priced differently. | E7 users / prepay customers | A single-rate tariff may be worse for heavy overnight use. |
| Exit fees | Leaving early can cost ££ and stop you switching when prices fall. | Those who value certainty | Fees can apply per fuel and per account. |
| Payment method | Direct Debit often has cheaper pricing than standard credit. | Most switchers | If you can't pay by DD, you may see fewer "cheap" fixes. |
Decision checklist: who a longer fix suits (and who it doesn't)
Often suits you if:
- You want predictable rates for budgeting
- You expect to stay in the property for the term
- You'd rather avoid tracking market changes
May not suit you if:
- You might move or change tenancy soon
- You want flexibility to switch quickly
- The tariff has high exit fees
Moving home? Many suppliers will let you transfer a fixed tariff to a new address, but it's not guaranteed (and depends on meter compatibility and supplier coverage). Always ask before committing.
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Costs, exclusions and common pitfalls (so "cheapest" stays cheapest)
Fixed tariffs can be good value, but small details can change the outcome. These are the most common issues UK households run into when searching for the cheapest deal.
Exit fees
Most fixed deals charge an early termination fee (E.ON Next and EDF about £25 per fuel; Octopus 12M £0). It may apply per fuel and could reduce near the end of the term. Check before switching.
Direct Debit assumptions
Many "cheap" tariffs are priced for monthly Direct Debit. If you pay on receipt of bill, standard credit rates can be higher and fewer deals may appear.
Economy 7 mismatch
If you have Economy 7 but switch to a single-rate tariff (or vice versa), your costs can rise. Confirm your meter setup and usage split.
Standing charge shock
A low unit rate can hide a high standing charge. This matters most for low users and electric-only flats.
Eligibility limits
Some tariffs are online-only, require paperless billing, or exclude certain meter types (including some prepay setups).
"Fixed" doesn't fix everything
A fixed tariff typically fixes unit rates and standing charges, but other elements (like VAT rules or government interventions) may change. Always read the terms.
Before you switch: 60‑second sanity check
- Do the prices shown match your payment method (Direct Debit vs standard credit vs prepay)?
- Are you comparing the right meter type (single-rate vs Economy 7)?
- Have you checked the exit fees on your current tariff?
- Is the tariff dual fuel or single fuel (and is that what you want)?
FAQs about the cheapest fixed energy deals (UK)
What is the cheapest two-year fixed energy deal in the UK right now?
In July 2026 the cheapest true 2-year fix is OVO 2-year Fixed at around £1,705 a year for a typical dual-fuel direct-debit home. If an 18-month term works for you, So Energy 18-month (£1,612) and Outfox 18-month (£1,624) are cheaper. All beat the £1,862 July price cap. Your exact cheapest deal depends on postcode, meter type and annual kWh.
Should I fix my energy for 2 years in 2026?
A 2-year fix such as OVO at about £1,705 locks in a price roughly 8% below the £1,862 July cap and protects you from further rises. It suits you if you want certainty and plan to stay put. A 12-month fix (E.ON Next v53 £1,602, Octopus 12M £1,632 with zero exit fee) can be cheaper today if you'd rather keep flexibility.
Do two-year fixed energy tariffs have exit fees?
Most do. As a guide for July 2026, Octopus charges no exit fee on its 12-month fix, while E.ON Next and EDF charge around £25 per fuel (about £50 dual fuel). OVO and other longer fixes typically apply a per-fuel exit fee. Always check the tariff information label before you switch.
Are two-year fixed deals cheaper than the July 2026 price cap?
Yes. The Ofgem price cap rose to £1,862 a year for a typical dual-fuel direct-debit household from 1 July 2026, a 13% increase on the £1,649 cap in force until 30 June. Every leading fix this month undercuts it - So Energy £1,612, Outfox £1,624 and OVO £1,705. The cap is a unit-rate cap on default tariffs, not a cap on fixed deals.
Can I switch if I'm in a fixed deal already?
Usually yes, but you may pay exit fees. Some suppliers waive exit fees in a set window near the end of the tariff. Check your current tariff information or ask your supplier before switching.
How long does an energy switch take in the UK?
Switching is free and for most households completes in around 5 working days, though it can take longer for complex meter setups or data mismatches. You can switch even without a smart meter, and your supply won't be interrupted during a switch.
Does my postcode really change the price?
Yes. Standing charges and unit rates vary across Great Britain because of regional network costs and tariff structures. Northern Ireland has a separate market; availability and switching processes differ there.
Do I need a smart meter to get the cheapest fix?
Not always. Some tariffs are available with traditional meters, while others may require a smart meter (or offer extra features if you have one). If you have Economy 7 or a prepay setup, meter type matters more for eligibility and pricing.
What information should I have ready to compare accurately?
Your postcode, whether you have gas and electricity, your payment method, and ideally your annual usage in kWh (from a recent bill). If you don't have usage, we can estimate it - but results may be less precise.
Trust, methodology and sources
Page accountability
- Written by
- EnergyPlus Editorial Team
- Reviewed by
- Energy Specialist
- Last updated
- July 2026
How we assess "cheapest" on this page
Because tariffs vary by customer circumstances, the headline figures (So Energy £1,612, Outfox £1,624, OVO £1,705 and the £1,862 cap) are typical dual-fuel direct-debit estimates. We explain how to find the cheapest option for your situation and what changes the result.
- Primary metric: lowest estimated annual cost (unit rates + standing charges) for your usage.
- Inputs that change outcomes: postcode (region), meter type (single-rate/Economy 7/prepay), payment method, dual fuel vs single fuel.
- What we don't do: we don't assume a tariff is available to all customers; eligibility and credit checks can apply.
- Limitations: tariff availability can change daily; supplier estimates can differ; your Direct Debit can be adjusted after meter readings.
Important: Always read the tariff information label / key facts before you agree. If anything looks unclear (e.g., exit fees or end dates), ask for confirmation in writing.
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