The October 2026 price-cap increase may prompt households to look at fixed energy tariffs.
A fixed tariff can make the unit price more predictable for an agreed period, but that does not automatically make every fixed deal cheaper.
The right comparison depends on the rates offered, your household's consumption and the terms of the contract.
What is a standard variable tariff?
A standard variable tariff is often described as a default tariff.
For covered customers, Ofgem's price cap limits the amount a supplier can charge through the unit rates and standing charges.
The cap is reviewed every three months.
That means the rates on a standard variable tariff can move when a new cap period begins.
From 1 October to 31 December 2026, Ofgem's headline typical annual figure for a Direct Debit dual-fuel household is £1,723. For details on how this is calculated, see our guide on what the October 2026 energy price cap means.
What is a fixed tariff?
On a fixed tariff, the unit rates are set according to the contract for a defined period.
Ofgem notes that if energy market prices rise, a customer on a fixed tariff continues to pay the agreed unit rate during the fixed period.
The opposite is also important: if variable rates fall, the fixed customer generally continues to pay the contracted rate unless the tariff terms allow a change.
A fixed tariff can therefore offer certainty, but certainty and lowest cost are not the same thing.
Five numbers to compare before fixing
Do not compare tariffs using only an advertised monthly Direct Debit.
Instead, check:
- electricity unit rate
- gas unit rate
- electricity standing charge
- gas standing charge
- your annual electricity and gas consumption
Using your own annual kWh figures makes the comparison much more meaningful.
A household with high gas consumption, for example, will be more sensitive to a difference in the gas unit rate than a household with very low gas use.
Check exit fees
Some fixed tariffs have exit fees if you leave before the contract ends.
That matters because energy prices can change during the fixed period.
Before agreeing to a tariff, check:
- the end date
- exit fees for each fuel
- whether the tariff requires a smart meter
- payment method requirements
- any conditions attached to the advertised price
Do not assume a tariff is flexible simply because it is available online.
Compare the standing charge as well as the unit rate
A lower unit rate can look attractive, but a higher standing charge may offset part of the saving, especially for a low-usage household.
The reverse can also be true.
A fair comparison should use both the unit rate and standing charge over the expected contract period. See our breakdown of October to December 2026 energy unit rates and standing charges to understand current averages.
Use your own annual usage where possible
Ofgem's 2026 Typical Domestic Consumption Values are useful when actual usage is unknown, but your own bill is a better starting point. You can review low, typical and high usage bill examples to see how usage bands compare.
Look for annual consumption in kWh on your latest statement or supplier account.
If the comparison website or supplier allows you to enter your own consumption, use it.
Ofgem also maintains a voluntary code for domestic energy price-comparison services and lists participating comparison websites on its switching guidance.
Do not assume today's cap will stay unchanged
The price cap is updated every three months.
The October 2026 cap applies only until the end of December.
The next cap, covering January to March 2027, is due to be announced by 25 November 2026.
Nobody comparing tariffs should treat the October variable rate as guaranteed for the whole length of a 12-month fixed contract.
A simple neutral decision checklist
Before changing tariff, ask:
- Do I value predictable unit rates?
- What is the total estimated cost using my own annual consumption?
- Are the fixed unit rates above or below my current variable rates?
- What are the standing charges?
- Are there exit fees?
- How long is the fixed period?
- What happens at the end of the contract?
- Am I comfortable if variable rates later fall below my fixed rate?
There is no universal answer that fits every household.
The bottom line
A fixed tariff can reduce uncertainty, while a capped variable tariff gives customers exposure to future cap movements.
The useful comparison is not "fixed versus £1,723".
It is your expected annual consumption multiplied by the actual tariff rates and charges you are being offered.
Sources
See Ofgem energy price cap unit rates and standing charges and Ofgem October to December 2026 price cap announcement. Figures checked on 13 September 2026.