What to Do When Your Fixed Energy Tariff Ends in 2026

What Happens When Your Fixed Energy Tariff Ends

When your fixed energy tariff expires, your supplier will automatically roll you onto their standard variable tariff (SVT), which is typically more expensive than the deal you've been on and subject to market changes.^[2][3] Your supplier must contact you around 49 days before your contract expires with renewal options, but if you take no action, you'll end up on the SVT.^[3]

This automatic rollover often means higher bills, so it's worth taking action before your fixed deal ends. The good news is that you have options, and with some planning, you can secure a better rate.

Steps to Take in the Weeks Before Your Contract Expires

Here's exactly what you should do as your fixed tariff approaches its end date:

1. Check Your Renewal Notice

About a month before your contract ends, review any fixed or variable tariffs your current supplier has offered you.^[2] This renewal notice will show you what rates you'll pay if you stay with your current provider.

2. Compare Whole-Market Deals

Don't just accept your supplier's renewal offer. Use comparison sites to find fixed tariffs that are cheaper than the SVT or current price cap. As of late 2025 and early 2026, several competitive fixed deals are available:

3. Contact Your Supplier About Government Savings

Make sure any fixed deal you consider will pass on the £150 government bill cut scheduled for April 2026.^[1] This is important when comparing the true cost of different tariffs.

4. Switch Within the Rules

If you switch in the last 49 days of your contract, you won't pay exit fees.^[3] This gives you flexibility to move to a better deal without penalty.

5. Act Early for Budget Certainty

Fixed tariffs provide budget stability, while variable ones fluctuate with market conditions.^[2][3] If you prefer predictable bills, securing a competitive fixed rate early makes sense.

Services like Lodo can handle the switching process for you, comparing deals and managing the paperwork so you don't have to spend hours researching options yourself.

Understanding the Current Energy Price Cap

The energy price cap sets maximum rates for standard variable tariffs. Here are the current and upcoming levels:

• 1 January - 31 March 2026: £1,758 per year for a typical dual-fuel household (up 0.2%)^[3][5][9]
• 1 April - 30 June 2026 (predicted, Ofgem announces 25 February): Down to £1,620-£1,637 (6.9-9.3% fall) due to government policy changes^[1][4][7]

While SVTs are capped at these maximum levels, some suppliers offer cheaper variable options. For example, Octopus Energy provides a £10 standing charge discount on some tariffs.^[4]

What This Means for Your Bills

The average UK household uses approximately 2,700 kWh of electricity and 11,500 kWh of gas annually, which works out to about 11.4 kWh of electricity per day.^[2] To put this in perspective, if you're on a fixed tariff charging 20p per kWh plus a 30p daily standing charge, using 10 kWh per day would cost £2.30 daily.

Comparing New Fixed Deals Against the Price Cap

Current fixed deals are saving customers £200+ per year compared to cap-capped SVTs, even accounting for the predicted price cap fall.^[1][5] If you value budget certainty, locking in these rates makes sense, especially before winter arrives.

Some flexible fixed deals with no exit fees allow you to switch again if prices drop further.^[1][6] Alternatively, discounted cap tariffs (such as those 14% below the cap) provide a middle ground between fixed certainty and variable flexibility.^[4]

Should You Switch Suppliers or Stay Put?

The decision to switch suppliers or renew with your current provider depends on what deals are available to you:

Reasons to Stay

Renewing with your current supplier is simpler and avoids the switching process. Some suppliers, like British Gas, allow free switches between their fixed tariffs, giving you flexibility without changing providers.^[3]

Reasons to Switch

Switching is often worthwhile if you can access cheaper fixed rates elsewhere.^[4] Just make sure to avoid high exit fees unless you're within the final 49 days of your contract.^[3][6]

If you're currently on an SVT or your fixed deal is ending, switching typically saves money when you compare whole-market options.^[6]

British Gas vs Octopus Energy: What's the Difference?

British Gas emphasizes stability and free internal switches between their fixed tariffs.^[3] Octopus Energy often offers more competitive rates for switchers, including cap-beating variable deals with features like £10 standing charge savings and innovative EV tariffs.^[4]

Considering an EV Energy Tariff for the First Time

If you're new to electric vehicles or considering an EV energy tariff, these specialist rates typically offer lower charges during off-peak hours, perfect for overnight charging. Suppliers like Octopus Energy are known for their EV-friendly tariffs that align with off-peak usage patterns.

Before switching to an EV tariff, compare the rates against standard fixed deals. EV tariffs work best for households with high overnight electricity usage, but they may not beat broad cap savings for those with lower EV usage patterns.^[4]

Consider your charging habits, average kilowatts per day usage, and whether the off-peak savings outweigh any higher peak rates.

Key Points About Energy Prices and Switching

When researching energy prices direct from suppliers, remember that many of the best fixed deals require Direct Debit payments.^[1] This is particularly true for competitive tariffs from suppliers like Ecotricity and So Energy.

Energy prices fluctuate regularly, so always verify the latest rates. Ofgem's price cap announcement on 25 February will provide updated data for comparing against available fixed deals.^[1][7]

While services like good energy reviews can provide insights into supplier performance, focus primarily on rates, contract terms, and customer service quality when making your decision.

Frequently Asked Questions