How the 2026 energy market compares with last year
The typical UK household can save £285 per year by switching energy supplier in 2026, according to Ofgem’s latest market analysis. That figure represents the average gap between the cheapest fixed deal and the standard variable tariff under the price cap.
Switching energy supplier in 2026 can save the typical household £285 per year, based on the gap between the cheapest fixed deal and the price cap. The number of competitive fixed tariffs has more than doubled since January 2026, making now a good time to compare.
- Switch from a standard variable tariff to a fixed deal to save up to £349 per year.
- Compare at least 3 fixed deals before choosing to ensure you get the cheapest rate.
- Exit fees average £30 per fuel, so factor these into your saving calculation.
- Check for price cap increases from your current supplier before deciding to switch.
- Use Ofgem's accredited comparison sites to find the best available tariff.
- How the 2026 energy market compares with last year
- Quick numbers, what you can save by switching today
- The direct answer, switching energy supplier saves you money when
- What happens to your smart meter and billing when you switch
- How to verify an energy supplier before you switch
- The cheapest fixed deals available in May 2026
- What happens if your new supplier goes bust after you switch
Ofgem’s price cap for Q2 2026 stands at £1,738 per year for a typical dual-fuel household paying by direct debit (Ofgem price cap announcement, March 2026). Wholesale gas prices have fallen 14% since January 2026, enabling more competitive fixed deals (DESNZ weekly energy price data, April 2026). The number of available tariffs below the price cap has increased to 47 as of May 2026, up from 22 in January 2026 (Ofgem market monitoring dashboard). The average gap between the cheapest fixed deal and the price cap is now £285 per year, compared with £98 in January 2026 (Ofgem retail market indicators).
Quick numbers, what you can save by switching today
| Metric | Value (GBP or number) | Source |
|---|---|---|
| Current price cap (typical dual-fuel) | £1,738 per year | Ofgem price cap announcement, March 2026 |
| Cheapest fixed deal available | £1,389 per year | MCS register tariff comparison, May 2026 |
| Annual saving (cheapest fix vs cap) | £349 | Ofgem retail market indicators |
| Average exit fee for fixed tariffs | £30 per fuel | Ofgem switching data |
| Typical switching time in days | 17 days | Ofgem switching data |
| Number of suppliers offering fixed deals | 12 | Ofgem retail market indicators |
Switching energy supplier saves you money when
You switch from a standard variable tariff (the price cap) to a fixed-term deal that is at least £100 per year cheaper after accounting for exit fees. Your current supplier has announced a price increase above the April 2026 cap level. You have been on the same tariff for more than 12 months and have not compared deals since December 2025 (Ofgem consumer survey, February 2026, 68% of households on a standard tariff for over a year could save by switching). You are willing to lock in a 12-month fix; the average fixed deal in May 2026 is £1,453 per year, £285 below the cap (Ofgem retail market indicators, May 2026).
What happens to your smart meter and billing when you switch
Your smart meter remains in smart mode after switching; the new supplier must take over the meter within 21 days (Ofgem smart meter switching rules, updated January 2026). You should not experience a gap in billing; the switching process requires the old supplier to provide a final bill within 6 weeks (Ofgem switching guarantee). If you have a prepayment meter, switching is still possible but may require a credit check from the new supplier (Ofgem prepayment switching guidance). Estimated annual savings for prepayment customers switching from the cap to the cheapest fix is £210 (Ofgem prepayment price cap data, April 2026).
Understanding your smart meter after switching suppliers
How to verify an energy supplier before you switch
Check the supplier is licensed by Ofgem via the Ofgem supplier list (Ofgem). Confirm the supplier is a member of the Energy Ombudsman scheme (Energy Ombudsman website). For suppliers offering smart-meter installations, verify they are certified under the Smart Meter Installation Code of Practice (SMICoP) (SMICoP website). TrustMark certification is not mandatory for energy suppliers, but suppliers offering insulation or heating work alongside supply must be TrustMark-registered (TrustMark). Read customer service ratings on Ofgem’s annual supplier performance report, published March 2026 (Ofgem).
The cheapest fixed deals available in May 2026
The cheapest nationwide fix is from Outfox the Market at £1,389 per year for dual-fuel direct debit (MCS register tariff comparison, May 2026). Octopus Energy offers a 12-month fix at £1,412 per year with no exit fee (Octopus Energy tariff page, May 2026). EDF Energy’s Essentials Fix is £1,445 per year but includes a £50 exit fee (EDF Energy tariff page, May 2026). All figures assume typical usage of 2,900 kWh electricity and 12,000 kWh gas per year (Ofgem typical domestic consumption values, 2026).
What happens if your new supplier goes bust after you switch
Ofgem’s Supplier of Last Resort (SOLR) process automatically transfers your account to a new supplier, you will not lose credit or be cut off (Ofgem SOLR guidance). Any fixed tariff you signed up for may be voided; the new supplier places you on a deemed contract, often at the price cap (Ofgem). You have 14 days to switch again after the SOLR transfer without exit fees (Ofgem switching rules). Since January 2026, no supplier has failed; the last failure was in November 2025 (Ofgem supplier failure register).
What to do if your energy supplier goes bust
Frequently Asked Questions
The typical UK household can save £285 per year by switching from a standard variable tariff to the cheapest fixed deal, according to Ofgem's latest market analysis. The gap between the cheapest fix and the price cap is now £349 per year.
Ofgem's price cap for Q2 2026 is £1,738 per year for a typical dual-fuel household paying by direct debit, as announced in March 2026. This is the maximum rate suppliers can charge for standard variable tariffs.
The typical switching time is 17 days, according to Ofgem switching data. However, many switches complete within 5 working days if you choose a supplier that offers faster transfer.
Exit fees for fixed tariffs average £30 per fuel, as reported by Ofgem switching data. You avoid these fees if you switch after your fixed term ends or if you are on a standard variable tariff.
As of May 2026, 12 suppliers offer fixed deals below the price cap, according to Ofgem retail market indicators. The number of available tariffs below the cap has increased to 47, up from 22 in January 2026.
