Cheapest fixed energy tariff in January 2027 (UK)
Find a fixed deal that actually fits your home: based on your postcode, meter type and payment method. We explain what “cheapest” really means, what to watch for, and how to compare fairly.
- Whole-of-market comparison for UK homes (not business)
- Clear caveats: unit rates, standing charges, exit fees and eligibility
- Quick quote form to see today’s options for your address
Figures are estimates and vary by region, meter type and payment method. Always check tariff terms and exit fees before switching.
Fast answer: what’s the “cheapest fixed tariff” in January 2027?
There isn’t one single cheapest fixed energy tariff for the whole UK in January 2027. “Cheapest” depends on your region (distribution area), meter type (credit / prepay / smart), payment method (Direct Debit vs pay on receipt), and your usage (kWh per year).
The practical way to find the cheapest fixed deal for your home is to compare total estimated annual cost (unit rates + standing charges) for your postcode, then check the key terms (exit fees, price changes, contract length, and eligibility).
What to look at first
- Estimated yearly cost for your usage
- Electricity unit rate (p/kWh) and standing charge (p/day)
- Gas unit rate + standing charge (if you have gas)
Fixed doesn’t always mean “no change”
Most fixed tariffs lock your unit rates/standing charges for the term, but some costs can still change (for example, VAT rules or charges passed through under the tariff’s terms). Always read the tariff information label.
When fixed is most useful
If you value bill predictability, are comfortable with a contract, and the fixed deal is competitive versus flexible options available to your home.
Key takeaway: the “cheapest fixed tariff” is the one with the lowest estimated annual cost for your postcode and usage after you account for standing charges, exit fees, and any eligibility restrictions.
Compare fixed deals for your home (January 2027)
Enter a few details and we’ll show fixed tariffs that match your home’s setup. You’ll be able to compare estimated annual cost, contract length, and key terms.
Why we ask for postcode: energy prices vary by region (standing charges and unit rates differ across Great Britain). We use postcode to map you to the right distribution area.
What happens after you compare?
- We show fixed tariffs available to your home and highlight key differences.
- You choose a tariff and confirm your details.
- Your new supplier contacts you; switching is typically handled for you.
For consumer protections and switching basics, see Ofgem’s guidance on switching energy supplier: Ofgem: switching energy supplier.
Get your fixed tariff options
Fixed vs flexible: a quick comparison (UK homes)
Use this table to decide whether you should focus on the cheapest fixed tariff, or consider flexible tariffs too. Terms vary by supplier and by product, so treat this as a guide.
| Feature | Fixed tariff | Flexible / variable tariff | What to check |
|---|---|---|---|
| Price certainty | Typically fixed unit rates/standing charges for the contract term | Prices can change (often with notice) | Whether rates/standing charges are fully fixed; when changes can occur |
| Exit fees | Common on fixed deals | Often none (but not always) | Fee amount (per fuel) and any fee-free window near end of term |
| Who it suits | Households wanting stability and happy to commit | Households wanting flexibility and no contract lock-in | Your likelihood of moving home or changing meter/payment setup |
| Common “gotchas” | Competitive unit rate but high standing charge; exit fees | Price rises; harder to budget month-to-month | Standing charge level, contract length, and eligibility for your meter type |
Decision checklist: when a fixed tariff is likely to suit you
- You want predictable rates for budgeting.
- You expect to stay in the property for the contract term.
- You can meet any eligibility (e.g. Direct Debit, smart meter requirements).
- The estimated annual cost is competitive after standing charges.
When “cheapest fixed” might not be best
- You may move home soon (exit fees can apply).
- You’re on prepayment and the deal isn’t available for your meter type.
- You use very little energy: a low unit rate can be outweighed by high standing charges.
- You want the freedom to switch quickly if market prices fall.
Costs, exclusions and common pitfalls (January 2027 fixed deals)
1) Standing charges can dominate
If you’re a low user (small flat, away often), a tariff with higher standing charges can cost more overall even if the unit rate looks “cheaper”. Compare annual estimated cost, not just p/kWh.
2) Exit fees (often per fuel)
Fixed dual fuel deals may charge exit fees for both gas and electricity. If you might switch again soon, factor this in. Exit fees and fee-free windows vary.
3) Eligibility rules
Some tariffs are limited to Direct Debit, online billing, certain meter types (e.g. smart), or new customers only. A “headline” cheap fix may not be available to you.
4) Your usage assumptions matter
A tariff that’s cheapest at 3,100kWh electricity and 12,000kWh gas (typical benchmarks) might not be cheapest for your home. If you have an EV, heat pump, or electric heating, your usage profile can be very different.
5) Pay-on-receipt can be pricier
Some suppliers price Direct Debit lower than paying on receipt of bill. If you prefer paying on receipt, filter comparisons accordingly so you’re not misled by Direct Debit-only pricing.
6) Timing and switching process
If your current fixed tariff is ending, check whether you’ll be moved to a standard variable tariff and when you can switch without fees. Keep records of meter readings at switch time.
Consumer support: If you’re struggling to pay, or need help with billing, Citizens Advice has step-by-step support: Citizens Advice: energy. If you think your supplier has treated you unfairly, you can also check Ofgem’s advice resources: Ofgem: energy advice for households.
Two realistic scenarios (with worked estimates)
These examples show why the “cheapest fixed tariff” can differ by household. Numbers are illustrative and use simplified maths.
Scenario A: Small flat, electricity-only, low usage
- Assumptions
- Electricity use: 1,800kWh/year. Payment: Monthly Direct Debit. Single-rate meter. (Standing charges and unit rates vary by region.)
- Tariff 1 (low unit rate, higher standing charge)
- Unit: 24p/kWh, Standing: 60p/day
- Tariff 2 (higher unit rate, lower standing charge)
- Unit: 26p/kWh, Standing: 45p/day
- Estimated annual cost
- Tariff 1: (1,800×£0.24)=£432 + (365×£0.60)=£219 → £651/year
Tariff 2: (1,800×£0.26)=£468 + (365×£0.45)=£164.25 → £632.25/year
Even though Tariff 1 has the lower unit rate, Tariff 2 is cheaper overall for a low user because of the lower standing charge.
Scenario B: 3-bed home, dual fuel, higher usage
- Assumptions
- Electricity: 3,800kWh/year. Gas: 14,000kWh/year. Monthly Direct Debit. Standard credit meters.
- Tariff X (slightly higher standing charge, lower unit rates)
- Elec: 25p/kWh + 55p/day. Gas: 6.2p/kWh + 32p/day.
- Tariff Y (lower standing charge, higher unit rates)
- Elec: 26.5p/kWh + 48p/day. Gas: 6.8p/kWh + 28p/day.
- Estimated annual cost
- Tariff X: Elec £950 + SC £200.75 + Gas £868 + SC £116.80 → £2,135.55/year
Tariff Y: Elec £1,007 + SC £175.20 + Gas £952 + SC £102.20 → £2,236.40/year
For a higher-usage home, the lower unit rates outweigh the higher standing charge, making Tariff X cheaper overall.
Important: These scenarios exclude any discounts, fees, or special features. Real tariffs may include different standing charges by region, time-of-use pricing, or different rates for prepayment. Use your own usage (or a recent bill) for best accuracy.
FAQs: cheapest fixed energy tariffs (UK, January 2027)
1) Why can’t you name one cheapest fixed tariff for everyone?
Because UK energy pricing varies by region and customer type. The cheapest tariff for a London flat on Direct Debit may be different from the cheapest tariff for a prepayment customer in the North West. Your annual usage also changes which deal is best once standing charges are included.
2) What does “fixed” mean on an energy tariff?
Usually it means your unit rates and standing charges are set for a defined term (for example 12 or 24 months). Always check the tariff terms and the tariff information label for any circumstances where charges could change.
3) Do fixed tariffs have exit fees in the UK?
Many do, but not all. Exit fees can apply per fuel (gas and electricity separately). Check your contract length, the fee amount, and whether there’s a fee-free period near the end of the tariff.
4) I’m on a prepayment meter. Can I get the cheapest fixed tariff?
Sometimes, but options can be more limited and priced differently. Some tariffs are not available for prepayment meters, or require specific smart prepay setups. Compare using the correct meter type so you only see eligible deals.
5) Is dual fuel always cheaper than splitting gas and electricity suppliers?
Not always. Some suppliers price competitively for dual fuel, but you can sometimes find a cheaper combination using different suppliers. The key is comparing total annual cost for each fuel and factoring in any discounts or fees.
6) What should I do if my fixed deal ends around January 2027?
Check your end date and any exit-fee window. If your fix ends, you may be moved to your supplier’s standard variable tariff (SVT). Comparing ahead of time can help you avoid rolling onto a potentially higher-priced option, but make sure you won’t pay exit fees for switching early.
7) How do I compare tariffs fairly if I don’t know my usage?
Best option: use a recent bill (it shows kWh used). If you don’t have one, use your online account, or ask your current supplier. You can use typical consumption benchmarks as a rough starting point, but your results will be less accurate.
8) Will switching affect my supply or require engineering work?
In most cases, supply continues as normal and there’s no visit needed. If you need a meter change (for example moving to smart prepay or a specific tariff requirement), the supplier will explain any appointments. For general switching guidance, see: GOV.UK: switch energy supplier.
How we assess “cheapest” (our methodology)
What we compare
- Estimated annual cost based on your inputs (usage, region, meter, payment method)
- Unit rates (p/kWh) and standing charges (p/day) for gas and/or electricity
- Tariff type and term length (e.g. 12/18/24 months fixed)
- Exit fees and key eligibility rules (where provided)
Assumptions & limitations
- All prices are time-sensitive and can change quickly.
- Tariff availability can depend on credit checks, smart meter status, and supplier criteria.
- Estimated annual costs depend heavily on accurate kWh usage.
- Some tariffs may include features (rewards, bundled services) that don’t reduce energy cost directly.
Editorial trust signals
- Written by
- EnergyPlus Editorial Team
- Reviewed by
- Energy Specialist
- Last updated
- June 2026
Sources (UK): We reference official and consumer-support guidance, including Ofgem, Citizens Advice (energy), and GOV.UK (switch supplier).
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