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Whether switching energy is worth it right now depends on two things: what you're paying today, and how available fixed deals compare with the Ofgem price cap. Here's how to work it out for your home, with the latest cap figures and the questions to ask before you fix.
Key takeaways
- Know your current tariff: check whether you're on a fixed deal or the variable tariff covered by the Ofgem price cap.
- The cap for 1 October to 31 December 2026 is equivalent to £1,723 a year for a typical dual-fuel household paying by Direct Debit, according to Ofgem.
- The cap limits unit rates and standing charges, not your total bill, so your costs depend on your usage.
- Compare fixes by estimated annual cost, and check exit fees before switching from a fix.
Know your current tariff
Check if you're on a fixed deal or the variable tariff covered by the Ofgem price cap. Your bill or app shows your tariff name, end date (for fixes), unit rates and standing charges.
The current price cap
According to Ofgem, the cap from 1 October to 31 December 2026 is equivalent to £1,723 a year for a typical dual-fuel household paying by Direct Debit, up 4% from £1,663 in the previous quarter. Ofgem bases this on "typical" use of 2,500 kWh of electricity and 9,500 kWh of gas a year.
| Detail | What it means |
|---|---|
| Cap period | 1 October to 31 December 2026 |
| Typical annual equivalent | £1,723 (Direct Debit, dual fuel) |
| Change from previous quarter | Up 4% from £1,663 |
| What's capped | Unit rates and standing charges |
| What isn't capped | Your total bill, which depends on usage |
Compare fixes
A fixed deal may cost more or less than the cap over time. Compare the estimated annual cost.
Questions to ask before fixing
- How does the fixed deal's estimated annual cost compare with the cap for your usage?
- How long is the fix, and what are the exit fees?
- Are there extras, like smart meter requirements or bundled services?
- Would you be comfortable if the cap fell below your fixed rate?
Exit fees
Check exit fees before switching from a fix. Suppliers can't charge exit fees in the last 49 days of a fixed deal, so that's often the best time to switch.
Rules change
Ofgem reviews the cap every three months, and it limits the unit rates and standing charges, not your total bill. Check the latest figures on Ofgem's site. The next cap, for January to March 2027, is usually announced in late November.
Step by step: work out if switching saves you money
- Find your annual usage in kWh on your bill or app.
- Note your current unit rates and standing charges.
- Use an Ofgem-accredited comparison site to see fixed deals for your usage.
- Compare the estimated annual cost with your current tariff.
- Factor in exit fees and how long you'd be locked in.
Other ways to cut energy costs
- Pay by Direct Debit, which is usually cheaper than paying on receipt of bill.
- Submit regular meter readings, or get a smart meter, to avoid estimated bills.
- Check for help schemes: the Warm Home Discount and supplier hardship funds help some households.
- Reduce usage: small changes like lower flow temperatures on combi boilers can help. Follow official guidance.
Switching made simple
If you decide to switch, the new supplier arranges it, and Ofgem says switches should take five working days. See how to switch energy and broadband.
Bottom line
If a fixed deal is cheaper than the cap for your usage, has no or low exit fees, and gives you peace of mind, it may be worth switching. If fixes are more expensive than the cap, staying on the variable tariff may be better for now. There's no guaranteed right answer, because future cap levels aren't known in advance.
Smart meters and time-of-use tariffs
If you have a smart meter, you may be able to choose a time-of-use tariff, with cheaper electricity at certain times. These can save money if you can shift usage, such as charging an electric car overnight, but can cost more if most of your use is at peak times. Compare carefully using your actual usage data.
If you're struggling to pay
If you're worried about energy bills, contact your supplier early. Ofgem rules require suppliers to offer support, such as affordable payment plans. Charities like Citizens Advice can help you check if you qualify for grants or schemes. Don't ignore arrears, as acting early gives you more options.
Fixed deal ending soon?
Your supplier must contact you before your fixed deal ends. If you do nothing, you'll usually move to its standard variable tariff, covered by the price cap. That's not necessarily bad, but it's worth comparing options at that point.
Frequently asked questions
What is the Ofgem price cap for October 2026?
From 1 October to 31 December 2026, Ofgem says the cap is equivalent to £1,723 a year for a typical dual-fuel household paying by Direct Debit, up 4% from £1,663.
Does the price cap limit my total energy bill?
No. It limits unit rates and standing charges on variable tariffs. Your total bill depends on how much energy you use.
Is it better to fix or stay on the price cap?
It depends on how available fixes compare with the cap for your usage and how much certainty you want. Compare estimated annual costs and exit fees.
When can I leave a fixed energy deal without an exit fee?
Suppliers can't charge exit fees in the last 49 days of a fixed deal.
Sources
Official sources this article relies on, checked October 15, 2026. Rules and prices change, so confirm details at the source.
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