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Written by: EnergySwitch editorial team · Last reviewed: 11 October 2026
Short answer: a fixed energy deal is cheaper than the price cap only if its unit rates and standing charges, applied to your usage and after any exit fee, come to less than the capped rates would. Put your quote into the calculator below and it compares the two in pounds over the length of the fix. It uses Ofgem’s GB average Direct Debit cap rates for 1 October to 31 December 2026.
| Price cap | Fixed deal | |
|---|---|---|
| Electricity, per year | ||
| Gas, per year | ||
| Total per year | ||
| Over 12 months, incl. exit fee |
This is an estimate, not a quote. Price cap rates change every three months and differ by region, so a cap-based figure assumes today’s GB average rates stay the same for the whole period. Check your own regional rates on your bill or Ofgem’s regional table.
How the fix vs price cap calculator works
For each fuel, the yearly cost is kWh used × unit rate, plus 365 days × daily standing charge. The calculator works that out twice: once with the price cap rates and once with your fixed quote. It then scales both to the number of months you choose and adds any exit fee from your current deal to the fixed side.
| Price cap, 1 Oct – 31 Dec 2026 (GB average, Direct Debit) | Unit rate | Standing charge |
|---|---|---|
| Electricity (no VAT this period) | 26.32p per kWh | 54.83p per day |
| Gas (VAT at 5% included) | 7.97p per kWh | 29.68p per day |
With Ofgem's medium usage of 2,500 kWh of electricity and 9,500 kWh of gas, these rates add up to about £1,724 a year. Ofgem quotes £1,723 for a typical Direct Debit home; the small gap is most likely rounding in the published averages. The usage presets are Ofgem's 2026 typical domestic consumption values: low 1,600 / 6,000 kWh, medium 2,500 / 9,500 kWh and high 3,800 / 14,000 kWh (electricity / gas).
The cap is set per unit and per day, not as a maximum bill, so the more energy you use, the more you pay. For the full rates, history and who the cap covers, see our energy price cap guide.
What the calculator can't see
- Future cap changes. Ofgem resets the cap every three months. A fix protects you if the cap rises and costs you if it falls; nobody knows which in advance.
- Your region. Cap rates differ by region. For exact figures use your bill or Ofgem's regional rates.
- Standing charges vs unit rates. Low users feel standing charges most. Our standing charges guide explains the October 2026 changes.
- Timing. If you're weighing up fixing before winter, read should I fix my energy deal before winter 2026, and see how to find the cheapest energy deals for your usage.
Sources
- Ofgem, changes to the energy price cap between 1 October and 31 December 2026 (26 August 2026), and the summary letter, including the zero VAT rate on electricity from 1 October 2026 to 31 March 2027.
- Ofgem, review of typical domestic consumption values (2026 values, used from 1 July 2026).
This calculator gives an estimate for information only. It is not a quote or financial advice and does not compare named suppliers.
Frequently asked questions
Is a fixed energy deal cheaper than the price cap right now?
It depends on the quote and on how much energy you use. Enter your yearly kWh and the unit rates and standing charges from a fixed quote, and the calculator compares them with Ofgem's current GB average Direct Debit cap rates. A fix with a lower unit rate but a higher standing charge can suit a high user and cost a low user more, so compare with your own usage rather than a headline figure.
What price cap rates does the calculator use?
Ofgem's GB average Direct Debit rates for 1 October to 31 December 2026: 26.32p per kWh and 54.83p a day for electricity, and 7.97p per kWh and 29.68p a day for gas. The electricity figures include no VAT and the gas figures include VAT at 5%. Rates in your region will be a little higher or lower.
Should I enter my quote's rates with or without VAT?
Enter them as shown on your quote. Household quotes usually include VAT, so leave the box unticked. If your quote shows rates before VAT, tick the box and the calculator adds VAT at the current domestic rates: 0% on electricity, which is zero-rated in Great Britain from 1 October 2026 to 31 March 2027, and 5% on gas.
Does the calculator include exit fees?
Yes, if you add one. Any exit fee for leaving your current fixed deal early is added to the fixed-deal side of the comparison over the months you choose. It does not include exit fees on the new deal, because you only pay those if you leave it early.
Why might my real bills differ from the estimate?
The cap changes every three months, so the cap side assumes today's rates stay the same for the whole period, which they will not. Ofgem is due to announce the January to March 2027 cap by 25 November 2026. Rates also vary by region and meter type, your usage will not match the estimate exactly, and the zero VAT rate on electricity is scheduled to end on 31 March 2027. Treat the result as an estimate, not a quote.
How much energy does a typical home use?
Ofgem's typical domestic consumption values, used since 1 July 2026, are 2,500 kWh of electricity and 9,500 kWh of gas a year for a medium user. Low use is 1,600 kWh of electricity and 6,000 kWh of gas, and high use is 3,800 kWh and 14,000 kWh. Your bill or annual statement shows your actual usage, which is more accurate.
