What is a fix-and-fall energy tariff in the UK? (2026 guide)

A fix-and-fall (or "price-fall guarantee") tariff locks in a fixed price for the term but also tracks down if the Ofgem cap drops below your fixed rate. In 2026 a small number of suppliers offer one. Here is when it beats a standard fix.

  • How fix-and-fall works in plain English
  • Suppliers offering it in May 2026 (E.ON Next, OVO, So Energy variants)
  • Worked numbers: when fix-and-fall beats a normal 12-month fix
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Estimates and product features are accurate at May 2026. Availability and rules vary by supplier.

Fast answer (May 2026)

A fix-and-fall tariff sets a fixed unit rate and standing charge for a contract term (usually 12 months), but with a downward-only tracking mechanism: if the Ofgem default tariff cap drops to a lower level than your fixed price during the term, the supplier reduces your price to that lower level (sometimes the cap itself, sometimes cap minus a discount).

In short: you get the upside of a fix (protection from cap rises) plus partial upside if the cap falls. The price for that is a slightly higher starting rate than the cheapest plain fix, and (for some products) a longer cooling-off period or specific exit rules.

As of late May 2026, only a handful of suppliers offer one — E.ON Next Pledge, OVO Greener Energy Drop Promise, and So Energy Bluebell Tracker Plus are the main UK examples.

How fix-and-fall works in 2026

  1. You sign up at the fixed rate — say 24.8p/kWh electricity and 5.9p/kWh gas, with a standing charge fixed for 12 months.
  2. Ofgem announces a new quarterly cap (1 Jan, 1 Apr, 1 Jul, 1 Oct).
  3. The supplier compares your fixed rate to the new cap rate for your region.
  4. If the new cap is lower, your unit rate drops to the cap rate (or cap minus a stated discount) from the cap effective date. Standing charge usually drops too.
  5. If the new cap is higher, you stay on your fixed price. Your price never goes up during the term.

Some variants only adjust at one fixed checkpoint (e.g. October cap). Others let prices fall any quarter. Always read the product summary.

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We will pull live fix-and-fall and conventional fixes side-by-side so you can see whether the small premium is worth it for your usage and region.

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  • Each product clearly labelled with the "fall" mechanism
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Fix-and-fall tariffs available in May 2026

Supplier / tariff Term Fall mechanism Exit fee
E.ON Next — Pledge Fixed 12m12 monthsFalls to cap if cap is lower at any quarterly review£25/fuel
OVO — Greener Energy Drop Promise12 monthsFalls to cap minus 2% if cap drops£50/fuel
So Energy — So Bluebell Tracker Plus12 monthsReviewed at Jul + Oct caps only£0

Octopus and EDF do not offer fix-and-fall in May 2026 — Octopus Tracker is fully variable; EDF Ensure is a cap-following tracker without an upper limit.

Scenario A — Cap falls in October

Assumptions: Plain 12-m fix at £1,668/yr (typical use). Fix-and-fall starts at £1,705/yr. October cap drops 4%, so the fix-and-fall re-prices to ~£1,608 for Oct–Dec.

  • Plain fix annual cost: £1,668
  • Fix-and-fall annual cost: ~£1,665 (after Q4 drop)
  • Roughly level — fix-and-fall wins by ~£3/yr

Scenario B — Cap stays flat all year

Assumptions: Plain fix at £1,668; fix-and-fall at £1,705 with no quarterly trigger.

  • Plain fix annual cost: £1,668
  • Fix-and-fall annual cost: £1,705
  • Plain fix wins by £37/yr — the "fall" insurance never paid off.

Rule of thumb: fix-and-fall pays off if the cap is expected to drop >3% within the contract term. Forecasters in May 2026 expect a small July drop but a winter rise, so the maths is close.

Fix-and-fall FAQs

No. A tracker (like Octopus Tracker or EDF Ensure) can move up and down with wholesale prices or the cap. Fix-and-fall has a fixed ceiling — it can only fall.
It depends on the product. E.ON Next Pledge re-prices both unit rate and standing charge to the cap. OVO and So Energy products vary — read the product summary.
No. Exit fees are linked to ending the contract early, not to cap movement. Suppliers must waive exit fees in the final 49 days of any fixed deal.
Currently rare. E.ON Next runs a Pledge PPM variant in some regions; OVO and So Energy are credit-only for the fix-and-fall range as of May 2026.
Yes if you accept any exit fee. Octopus customers can sometimes move between Octopus tariffs without exit costs. Always check fee terms in your contract.
Only if the cap falls. The cap-minus-X% mechanism gives you a guaranteed gap below cap when it triggers, but the starting price is often slightly higher to compensate.

How we assess this

Last updated
May 2026

Product features are based on supplier-published terms as at 22 May 2026. Cost scenarios use the Q2 2026 Ofgem cap (TDCV household), and Cornwall Insight's central forecast for the rest of the term.

Sources

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Updated on 25 May 2026