Should I fix my energy or stay on the Price Cap?

How to check if it's worth fixing your energy

Before you switch to a fix (or any other tariff), you need to understand how the Price Cap will dictate what you pay if you were to stick on a price-capped tariff. Bear in mind this only really applies to one-year fixes – it's a much harder decision if you want to fix for longer. 

1. If you're not on a fix, you're almost certainly on a price-capped tariff, so that's what you need to compare against

   Almost every household is currently on a standard tariff with prices dictated by the Energy Price Cap. For a household with typical usage, paying by Direct Debit, it's currently set at £1,755 a year.

   But remember, the Cap is not a cap on how much you pay – it only limits standing charges and gas and electricity unit rates. See Price Cap FAQs for full info or see the full region-by-region rates in our Price Cap rates guide.

   Yet that's not the full story as the Price Cap changes every three months, so you need to know how it's likely to change over the next year...

2. The Price Cap will rise by 0.2% on 1 January

   The most important thing to understand is that price-capped tariffs are variable, and the prices change every three months in line with the Cap.

   So when considering if it's worth switching to a fixed deal, you need to look at what is expected to happen over the course of the next year. A fix that looks decent now could end up costing you more over the next year if energy prices drop.

   Energy Price Cap - confirmed changes and future predictions

   Time period	Price Cap on typical use (1)
   CURRENT PRICE CAP 1 October 2025 to 31 December 2025 Confirmed	UP 2% £1,755 a year
   NEW PRICE CAP 1 January 2026 to 31 March 2026 Confirmed	UP 0.2% £1,758 a year
   1 April 2026 to 30 June 2026 Weak prediction (2)	DOWN 6% £1,651 a year
   1 July 2026 to 30 September 2026 Crystal ball-gazing (2)	DOWN 1% £1,628 a year

   Based on a dual-fuel household paying by Direct Debit. (1) 2,700 kilowatt hours of electricity, 11,500 kilowatt of gas. (2) Average according to the latest predictions (on week beginning 8 December 2025) from EDF, British Gas and E.on Next's Price Cap Forecasting Services.

3. '£150' to be cut from energy bills from April 2026

   From 1 April 2026, households in England, Scotland and Wales will see their energy bills cut by £150 a year on average, the Chancellor has confirmed in the Autumn Budget.

   This is the average saving per household. In practice, the reduction will come from cheaper unit rates (so higher users will save more as they use more, lower users less). So from April:

   • Electricity: Unit rates to be reduced by 3.37p/kWh (3.54p including VAT)

   • Gas: Unit rates to be reduced by 0.31p/kWh (0.35p including VAT).

   This will definitely apply to the Price Cap, but Martin Lewis has urged the Government to pass these savings onto those on fixed tariffs too.

   Between now and when this change happens is the high-use winter period, so this is the most important time to be on the lowest possible rate. Waiting for a predicted 5% cut in April 2026 isn't worth it when you can fix now at 13% less. Use our Cheap Energy Club comparison to speedily find your winner.

4. Martin's rule of thumb for when it's worth switching

   Some of this is crystal-ball gazing and averaging, but if the predictions above are right, our best guess is...

   It's predicted that over the next year you'll pay roughly 4% LESS than the October Price Cap on a price-capped tariff.

   This is based on current published Price Cap predictions, which are changing all the time.

   So if you find a fix that's:

   • at least 4% cheaper than the October Price Cap, you're very likely to save.

   • more than the October Price Cap, you're unlikely to save - because the Price Cap is expected to fall.

   We've full details of the current deals below. You can use our Cheap Energy Club comparison tool to see the top deals for you plus a bespoke prediction of what you'd pay likely on the Cap over the next year.

5. Over the last year, the cheapest fix would have ALWAYS beaten the Price Cap

   While past performance is no predictor of the future, as our infographic below shows, at every point over the last year, on average, you'd have been better off getting the cheapest 12 month fix than going on the Price Cap:

   

Top energy deals

We've a list of the top standalone energy deals below. Savings are compared against the new Price Cap, which began on 1 October. Yet what you'll pay varies by region and usage, so it's best to get a bespoke comparison. You can use our Cheap Energy Club to see the top fixes for you. 

Fixing isn't your only choice to save

For most, locking into a cheap fix is the simplest and safest way to guarantee a saving, but there are alternatives. We've full info on the alternatives to fixing below, but in brief, these include: 

• Discounted Price Cap tariffs – these are variable tariffs that typically offer a fixed discount on the Price Cap for 12 months.

• Cheaper variable tariffs – these are standard variable tariffs, so they are still controlled by the Price Cap, but some providers have set their rates below the max allowed by Ofgem. These include Home Energy, which is 11% cheaper than the Price Cap, and Octopus Energy, which offers a £15 saving on the maximum standing charge costs allowed under the Cap.

• 'Tracker' tariffs – such as Octopus Tracker, where the rates change every day, and Agile Octopus, where the rates changes every half-hour, based on wholesale energy prices (what providers pay for gas and electricity).

• Electric vehicle energy tariffs – specifically designed for those with electric vehicles (EVs), EV energy tariffs tend to offer cheaper off-peak rates for charging your vehicle, usually overnight, and higher peak rates for all other usage. See what EV tariffs are available.

Is it worth fixing for longer? 

Until recently longer fixes were relatively costly, but there are now some decent 18-month fixes. Yet no analysts predict the Price Cap rate more than about a year out, as the market is too volatile. So there's an element of uncertainty here. 

Yet longer fixes can currently be as cheap as the one-year deals, so if you want longer-term peace of mind, they look strong. You can see how these longer tariffs stack up for you in our Cheap Energy Club. 

What are the alternatives to fixing?

If you don't want to fix you energy tariff, there are other options, including...

1. Do nothing – stick on the Price Cap

   Around 65% of homes in England, Scotland and Wales are on standard variable tariffs set on or near the maximum level they can be under regulator Ofgem's Price Cap. This cap changes every three months.

2. Cheaper variable tariffs that undercut the Price Cap

   While firms are unable to charge those on standard tariffs more than the Price Cap, they can charge less if they wish to. There are several variable tariffs to switch to that can work out cheaper than the current Price Cap.

   Variable tariffs that discount the Price Cap

   These variable tariffs change with the Price Cap every three months, but give you a discount on either the Price Cap unit rates or the standing charges, so a household will always pay less than the Cap over 12 months when on one of these tariffs.

   • Where the tariff gives a discount off the Price Cap standing charges, this will be a fixed amount for 12 months. Your unit rates will match the Price Cap for your region. These are particularly good for low to medium energy users.

   • Where the tariff places a discount on the Price Cap unit rates, your actual discount will vary depending on your usage. Your standing charges will be the same as the Price Cap standing charges for your region.

   If you're not willing to fix, and you'd just end up sticking on a price-capped standard variable tariff, these are worth considering. They all last for 12 months and are available to new and existing customers. You can see how these compare to other tariffs in our Cheap Energy Club.

   Discounted Price Cap tariffs

   Provider and tariff name	Price Cap discount on dual fuel tariff	Payment method	Exit fees
   Tariffs that discount Price Cap unit rates - better for higher users
   Outfox Energy's Outfox the Price Cap	£100 off unit rates (on average) (1)	Direct Debit only	£50 per fuel
   E.on Next Pledge	£50 off unit rates (on average)	Direct Debit only	None
   So Energy So Green	£50 off unit rates (on average)	Direct Debit only	£50 per fuel
   Tariffs that discount Price Cap standing charges - better for low users
   EDF Simply Tracker*	£50 off standing charges	Direct Debit, credit or prepay	£25 per fuel
   Scottish Power's Cap Tracker	£15 off standing charges	Monthly/quarterly Direct Debit, credit/cash	None

   Updated 30 September 2025. All of these tariffs last for 12 months and require a smart meter. (1) Only available as a dual-fuel tariff.

   See Martin's explanation of E.on Next tracker from The Martin Lewis Money Show Live on Tuesday 13 December 2024. While the rates for the tariff will have changed since then, the principle remains the same. 

   

   

   Martin Lewis explains how Eon's tracker tariff works

   Watch: Martin Lewis explains how E.on Next's tracker tariff works and why it's worth considering

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   There are standard variable tariffs cheaper than the Price Cap

   There are a handful of standard variable tariffs that are cheaper than the Price Cap, including: 

   • Home Energy's Fair Variable tariff is a variable dual-fuel or electricity-only Direct Debit-only tariff that's currently 11% cheaper than the Price Cap. As it's a variable tariff there are no exit fees, so you can switch to a better deal if its prices rise – and there are no guarantees if or when that might happen.

     Home Energy is a small and fairly new supplier, with little feedback on its customer service, but you will see them in our Cheap Energy Club comparison. As it's a variable tariff, with no fixed end date, the rates and standing charges are governed by the Price Cap, so you'll never pay more than that if you choose to switch to this tariff.

   • Octopus Energy's Flexible Octopus is another variable tariff that's cheaper than the Price Cap, but only by a few quid. Octopus discounts its standing charges on this tariff (but charges the Price Cap for unit rates), making it on average about £15 cheaper than the Price Cap. Co-op Energy, which is now part of Octopus Energy, offers the same tariff. You can see how Octopus and Co-op Energy's tariffs compare in our Cheap Energy Club.

   • Fuse Energy Variable Import is a dual-fuel tariff that's 3% cheaper than the Price Cap. Fuse also offers lower standing charges than the maximum allowed under the Cap.

     Plus it's a fairly new firm with no track record. If you're interested in switching, see the current rates in our Cheap Energy Club and read our need-to-knows below.

   If you're thinking of switching to Fuse, it's worth bearing the following in mind before you make the move:

   • You can manage your account online or via its app. You can download Fuse Energy's app to get a quote, start a switch and manage your account. It's available on the Apple App Store and Google Play Store. Alternatively, you can sign up and manage your account directly from the web. Customer service is also mostly handled through the app, though the firm told us customers can also email it on support@fuseenergy.com. Potential customers can check their rates (based on their postcode) on the firm's website before committing.

   • You pay by Direct Debit based on the energy you used the previous month. Fuse uses variable Direct Debits, where you just pay for what you use month by month. The advantage of this is you won't build up too much credit; the disadvantage is you'll need more cash in the winter months as your usage isn't smoothed out across the year.
     

     Fuse also doesn't currently support any other type of Direct Debit, nor does it support standard credit (where you pay by card, cash or cheque on receipt of a bill) or prepayment (where you top up your meter before using any energy).

   • Customers are able to make one-off top-ups to their account to build credit ahead of the winter

   • It supports Economy 7. Households that have a multi-rate meter can join Fuse's Economy 7 tariff. See our Economy 7 guide for details.

   Need-to-knows before you decide to switch to Fuse Energy

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   The Octopus Tracker tariff – prices change daily based on wholesale rates

   The Octopus Tracker tariff is available to existing Octopus customers (though others can just switch first to its standard tariff, then to this) with dual-fuel, electricity-only and gas-only options.

   

   Rates change daily depending on wholesale costs (and where you live), which makes it more of a gamble. Octopus says it's been cheaper than its standard tariff about 75% of the time between January and July this year - though the key is, it is variable, so there's uncertainty to what you pay.

   You WILL need to keep a close eye on the rates in case wholesale prices rise.
   
   If it does start to get expensive, you can just switch back to Octopus' price-capped standard tariff (though it may take two weeks and you can't go back to the Tracker for nine months afterwards).

   Plus, so Octopus can change the rates daily and keep charging you the right amount, you'll need to get a smart meter (if you don't already have one) to be on this tariff.

   Currently, two thirds of homes have their energy prices controlled by regulator Ofgem's Price Cap. These are largely based on wholesale energy prices, and only change every three months, so there's a big time-lag between changes in wholesale prices and any change to the actual rates we pay. 

   Yet Octopus Tracker follows wholesale costs on a daily basis, and prices are reflected in the rates you pay the next day, so it gives quicker access to falling prices. But if wholesale prices start to climb, so too will the rates you pay. You'll need to be willing to keep tabs on the changing unit rates to ensure it's still competitive. 

   Octopus Tracker also has a £1-a-kilowatt-hour maximum cap on electricity and 30p-a-kilowatt-hour maximum cap on gas, so if prices do rise rapidly, there is a limit on what you would pay for each unit of energy you use.

   How much one week's energy would cost

   	Gas	Electricity	Total (2)
   Octopus Tracker (1)	Unit rate: 4.87p a kilowatt hour (kWh) Standing charge: 28.88p a day	Unit rate: 22.85p a kWh Standing charge: 49.74p a day	£28
   Energy Price Cap from 1 October 2025	Unit rate: 6.21p a kWh Standing charge: 34.05p a day	Unit rate: 25.64p a kWh Standing charge: 53.00p a day	£33

   (1) Average of the daily rates in the West Midlands on 22 to 28 September 2025. (2) Calculated using regulator Ofgem's typical-use figures for West Midlands: 11,500kWh for gas and 2,700kWh for electricity.

   While rates can be cheaper, they can spike suddenly if wholesale costs rise

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   How much one week's energy would cost

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3. 'Time of use' tariffs – good for those who can control peak usage, not just for electric vehicle charging

   

   Time of Use (TOU) tariffs work very similarly to Economy 7, where you pay a different rate for your electricity depending on when, during the day, that you use it.

   Many time of use tariffs are currently aimed at electric vehicle (EV) owners. Most Electric vehicle (EV) energy tariffs give cheaper off-peak electricity rates at night - allowing households to charge their vehicles at a lower rate when there's less demand on the grid - and higher peak rates during the day.

   Yet some energy suppliers have started offering time of use tariffs to a wider audience, without the need for an EV. So if you can shift your usage outside of peak periods, these tariffs could help you save on your energy bills.
   
   Read Martin's blog on why consumers need to be protected before Time of Use Tariffs take over.

   Agile Octopus

   On Octopus Energy's Agile Octopus tariff the rates you pay change every 30 minutes, every day, based on wholesale energy prices nationwide demand - with cheaper rates at certain times of the day when demand is lower.
   
   While mainly aimed at those with EVs, solar panels and batteries or storage heaters, any one can get it, so if you can shift your use out of high use periods - such as in the evenings - it could be worth considering.

   This means quicker access to falling prices – but if wholesale rates start to climb, so too will the rates you pay. 

   The tariff has a £1-a-kilowatt-hour maximum cap, so if prices do rise rapidly, there's a limit on what you would pay for each unit of electricity you use.

   If you want to leave Agile Octopus, you can switch to the Octopus standard tariff at any time without charge, but you can't move back to Agile or to any other of its smart tariffs within 30 days (however, with Octopus Tracker, you can't go back to that for nine months).

   Agile Octopus is the only tariff in the UK that passes 'negative' prices to customers – through what the firm calls 'Price Plunge' events. These happen occasionally, whenever more electricity is generated than consumed, meaning wholesale prices drop below zero for a short period.

   Price Plunge events don't happen frequently, but when they do, customers are notified by text, so you can take advantage of being paid to use electricity.
   

   Agile Octopus tariff is electricity-only, so you'll need a separate gas tariff if you have gas. It's for existing customers only, so if you're not already with Octopus, you'll need to move to its standard variable tariff first.

   You'll also need to get a smart meter that gives half-hourly meter readings, so if you don't already have one, or you don't want (or can't get) one, it's not for you.

   Changes in wholesale prices are reflected in the rates you pay almost immediately

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   You can GET PAID to use electricity on Agile Octopus

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   Who can get Octopus Agile?

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   E.on Next Smart Saver

   The E.on Next Smart Saver tariff offers three different electricity rates throughout the day, including 'peak' (4pm-7pm), 'off-peak' (5am-4pm and 7pm-2am) and 'super off-peak' (2am-5am).

   While the super-off peak rates are much cheaper than current Price Cap rates, the peak rates are around 50% more, so it's likely only to be worth it if you can avoid using electricity in the evenings, and shift your usage to during the night.
   
   The rates are fixed for 12 months, but there are no early exit fees, so you can switch to another tariff or supplier if you find this isn’t working for you.

   Below are the average E.on Next Smart Saver tariff electricity rates:

   E.on Smart Saver - average unit rates and standing charges

   	Electricity	Gas
   Super off-peak (1)	16.34p/kWh	6.16p/kWh
   Off-peak (2)	21.97p/kWh	6.16p/kWh
   Peak (3)	39.99p/kWh	6.16p/kWh
   Daily standing charge	54.22p per day	29.82p per day

   Updated 12 November 2025. (1) 2am to 5am. (2) 5am to 4pm and 7pm to 2am. (3) 4pm to 7pm.

   E.on Next Smart Saver offers three electricity rates throughout the day

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   EDF FreePhase Dynamic and FreePhase Static

   EDF's FreePhase Dynamic and FreePhase Static tariffs offers three different rates through the day. EDF call the different periods 'Red' (4pm-7pm), 'Amber' (6am-4pm and 7pm-11pm) and 'Green' (11pm-6am). 'Green' is when the rate is cheapest, 'Red' is when it's the most expensive.

   The FreePhase Dynamic tariff moves in-line with wholesale electricity prices, while the FreePhase Static offers fixed unit rates for 12 months. Both are electricity-only tariffs, but you can pair it with any gas tariff, and standing charges are 48.03p per day. There are no exit fees, so you can ditch and switch if you find they work out more expensive.

   In addition, both versions of the tariff offer periods of free electricity when wholesales prices go negative - usually when there is a lot of renewable energy being generated and demand is low. EDF will send you a text alert before a free period starts so you can make the most of the free energy. The daily standing charge still applies.

   For the Dynamic tariff, prices for the next day will be published on EDF’s FreePhase Dynamic price tracker. The unit rate is capped at 75p/kWh, even if wholesale prices go higher.

   EDF FreePhase Static - average rates

   	Average rate
   Green (1)	17.05 p/kWh
   Amber (2)	22.07 p/kWh
   Red (3)	38.39 p/kWh

   Updated 13 November 2025. (1) 11pm to 6am. (2) 6am to 4pm and 7pm to 11pm. (3) 4pm to 7pm.

   EDF FreePhase Dynamic tariff

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   EDF FreePhase Static tariff

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What to do if you're struggling to pay your energy bills

There are three key areas you can focus on:

• Have you got all the help you qualify for? Our What to do if you're struggling to pay your energy bills guide covers everything you can do and where to get help, and has info on all the cost of living support schemes.

• Check you're paying the right amount. You can use our Energy Price Cap Calculator to see how much you'll pay from October.

• Try to cut your energy usage. There are lots of ways to easily reduce what you use. See our Energy saving tips, or the Energy mythbusters guide for less clear-cut issues, and our Heat the human guide.