Should you switch energy supplier? Here's how to tell
Updated 13 March 2026 · 8 min read
The Ofgem price cap is falling to £1,641/year from April 2026. But the cheapest fixed deals are already below that, with some as low as £1,498/year. So should you switch energy supplier right now, or stay where you are?
It depends on what tariff you are on. Here is a straightforward framework to help you decide.
Should you switch right now?
Yes, probably worth switching if:
- You are on a standard variable tariff (SVT) or the price cap rate and fixed deals are cheaper
- You are on an old fixed deal that is more expensive than current offers
- You want price certainty and protection against potential price rises later in 2026
Maybe, check first if:
- You are already on a competitive tariff and the gap between it and the best deals is small
- The difference between fixed deals and the SVT rate is under £50/year for your usage
No, hold off if:
- You are already on a good fixed deal that does not expire soon
- You are in debt to your current supplier (you usually cannot switch until the debt is cleared)
If you are on the SVT and want to check what is available, compare energy deals on MoneySupermarket using your postcode and recent usage.
How much could you save by switching?
The Ofgem Q2 2026 price cap puts a typical dual fuel bill at £1,641/year. Here is how that compares with the cheapest fixed deals available in March 2026:
| Tariff | Typical annual cost | Saving vs price cap |
|---|---|---|
| Ofgem price cap (SVT) | £1,641 | Baseline |
| E.ON Next 14-month fix | ~£1,596 | ~£45/year |
| Outfox the Market fix | ~£1,524 | ~£117/year |
| Fuse Energy 13-month fix | ~£1,498 | ~£143/year |
Prices based on typical dual fuel usage (Ofgem medium figures) as of March 2026. Your actual savings depend on your usage and postcode. Deals change frequently.
If you are on an older fixed deal at a higher rate, the savings could be even larger. The only way to know for sure is to compare using your actual usage figures.
Fixed vs variable tariffs in Q2 2026
The price cap has been falling: from £1,758 in Q1 2026 down to £1,641 in Q2. That is good news if you are on the SVT. But it raises a question: should you fix now, or ride the variable rate down?
Here is the trade-off:
- Fixed deals lock in a rate for 12 to 14 months. If wholesale prices rise and the cap goes back up in Q3 or Q4 2026 (Cornwall Insight forecasts suggest this is possible), you are protected. The downside: if prices keep falling, you are stuck paying more than the cap.
- Variable (SVT) follows the price cap each quarter. If the cap keeps dropping, your bills drop too. But if it rises, your bills rise with it. No certainty either way.
Right now, the best fixed deals are priced below the Q2 cap. That means you get a lower rate and price certainty. That combination does not always exist, so it is worth acting on while it does.
How the price cap works
The Ofgem price cap sets the maximum unit rate and standing charge suppliers can charge on their standard variable tariff. For Q2 2026:
The cap changes every quarter. It does not limit what you pay overall. If you use more energy, you pay more. It just limits the per-unit rate and standing charge on the default tariff.
Suppliers can (and do) offer fixed deals below the cap. That is where the savings are.
What to look for when comparing tariffs
- Unit rate vs. standing charge. A low unit rate is not much use if the standing charge is high. Compare the total annual cost, not just the headline rate. See our guide to what standing charges are and why they matter.
- Exit fees. Some fixed tariffs charge a fee (typically £25 to £50 per fuel) if you leave early. Others do not. Check before you sign up.
- Contract length. One-year fixes are most common. Two-year deals give you longer price certainty but lock you in.
- Green tariffs. Some tariffs claim to be 100% renewable. The details vary. Some suppliers buy renewable certificates (REGOs) rather than actually generating green energy. If this matters to you, check how the supplier backs its claims.
How to switch energy supplier: step by step
- 1Find a recent bill or check your smart meter. You need your current tariff name, annual usage in kWh (gas and electricity), and your postcode. If you do not know your usage, your supplier's app or website will have it.
- 2Compare deals. Use an Ofgem-accredited comparison site like MoneySupermarket, Uswitch, or Compare the Market. Enter your details and filter by total annual cost.
- 3Pick a deal and sign up. Choose the tariff that suits you. Check the exit fee and contract length. The new supplier handles everything from here.
- 4Wait for the switch. It takes a maximum of 5 working days. Your energy supply is never interrupted. You will not lose gas or electricity during the switch.
- 5Submit a final meter reading to your old supplier (unless you have a smart meter, which sends readings automatically). This ensures your final bill is accurate.
Smart meter note: If you have a SMETS1 smart meter, it may temporarily lose its "smart" functionality when you switch and behave like a traditional meter until it is re-enrolled. SMETS2 meters (the newer type) usually keep working through a switch. Either way, your energy supply is not affected.
Switching is not the only way to cut your bill
Tariff switching saves you money on the rate you pay. But the amount you use matters just as much. A poorly insulated home wastes energy regardless of which supplier you are with. Find out what uses the most electricity in your home and where you can cut back.
Check your home's EPC to see what improvements are recommended for your property. Some of the most effective changes, like loft insulation or draught-proofing, cost very little. Others, like a heat pump or solar panels, have significant government grants available.
See what your home is costing you
Enter your postcode to see your EPC rating, estimated energy costs, and where you could save.
Check your homeSome links on this page are affiliate links. If you switch through them, we may earn a commission at no extra cost to you. See our affiliate disclosure.