---
title: "Fixed vs. Variable Energy Tariffs in 2026: Which Offers Better Value Amid Market Volatility?"
description: "With energy bills rising, many are asking the same question: Should I fix my tariff or stick with a variable deal? Here are the pros and cons of switching energy tariff."
image: https://blog.loop.homes/hubfs/Loop%20blog%20why%20should%20you%20switch%20tariffs%20main.png
---

[![loop homes](https://blog.loop.homes/hubfs/raw_assets/public/Loop_Homes_January2024/images/logo-tm.svg "loop homes")](https://loop.homes/)

- Smart Meter App 
    - [Features & Benefits](https://loop.homes/loop-smart-meter-app/)
    - [Solar Savings Calculator](https://loop.homes/loop-smart-meter-app/solar-panel-calculator/)
    - [Carbon Footprint Calculator](https://loop.homes/loop-smart-meter-app/carbon-footprint-calculator/)
    - [Green Energy Forecast](https://loop.homes/loop-smart-meter-app/green-energy-forecast/)
    - [Turn Down and Save](https://loop.homes/loop-smart-meter-app/turn-down-and-save/)
    - [App Reviews](https://loop.homes/loop-smart-meter-app/reviews/)
    - [User Stories](https://loop.homes/loop-smart-meter-app/user-stories/)
- [Loop Optimise](https://loop.homes/loop-optimise/)
- [Install Solar Panels](https://loop.homes/install-solar-panels/)
- [Guides ](https://loop.homes/guides/)
- [Blog](https://blog.loop.homes/)
- [About](https://loop.homes/loop-trust-power/)
- Support 
    - [Troubleshooting](https://loop.homes/support/)
    - [My Account](https://www.loophome.app)

[ Sign Up for FREE ](https://www.loophome.app/signup/)

- Smart Meter App 
    - [Features & Benefits](https://loop.homes/loop-smart-meter-app/)
    - [Solar Savings Calculator](https://loop.homes/loop-smart-meter-app/solar-panel-calculator/)
    - [Carbon Footprint Calculator](https://loop.homes/loop-smart-meter-app/carbon-footprint-calculator/)
    - [Green Energy Forecast](https://loop.homes/loop-smart-meter-app/green-energy-forecast/)
    - [Turn Down and Save](https://loop.homes/loop-smart-meter-app/turn-down-and-save/)
    - [App Reviews](https://loop.homes/loop-smart-meter-app/reviews/)
    - [User Stories](https://loop.homes/loop-smart-meter-app/user-stories/)
- [Loop Optimise](https://loop.homes/loop-optimise/)
- [Install Solar Panels](https://loop.homes/install-solar-panels/)
- [Guides ](https://loop.homes/guides/)
- [Blog](https://blog.loop.homes/)
- [About](https://loop.homes/loop-trust-power/)
- Support 
    - [Troubleshooting](https://loop.homes/support/)
    - [My Account](https://www.loophome.app)

- [![loop homes](https://blog.loop.homes/hs-fs/hubfs/raw_assets/public/Loop_Homes_January2024/images/loop_google_play_badge-qig8bfcvrvh957g4esfg7c5r8a263bw5gaizhsrtvk.png?width=155&height=225&name=loop_google_play_badge-qig8bfcvrvh957g4esfg7c5r8a263bw5gaizhsrtvk.png "loop homes")](https://play.google.com/store/apps/details?id=com.trustpower.loop&referrer=utm_source=Website&utm_medium=SmartMeterApp&utm_campaign=Billboard%20)
- [![loop homes](https://blog.loop.homes/hs-fs/hubfs/raw_assets/public/Loop_Homes_January2024/images/loop_app_store_badge-qig8bfcvrvh957g4esfg7c5r8a263bw5gaizhsrtvk.png?width=155&height=225&name=loop_app_store_badge-qig8bfcvrvh957g4esfg7c5r8a263bw5gaizhsrtvk.png "loop homes")](https://apps.apple.com/gb/app/loop-energy-smart-meter-app/id1483586889?utm_source=Website&utm_medium=SmartMeterApp&utm_campaign=Billboard%20)

- [** ](https://blog.loop.homes/fixed-vs.-variable-energy-tariffs-in-2025-which-offers-better-value-amid-market-volatility#)
- <https://twitter.com/loophomes>
- [** ](https://blog.loop.homes/fixed-vs.-variable-energy-tariffs-in-2025-which-offers-better-value-amid-market-volatility#)
- [** ](https://www.facebook.com/loophomes)
- [** ](https://blog.loop.homes/fixed-vs.-variable-energy-tariffs-in-2025-which-offers-better-value-amid-market-volatility#)

1. [Home](https://loop.homes/)
2. [The Loop Blog](https://blog.loop.homes)
3. Fixed vs. Variable Energy Tariffs in 2026: Which Offers Better Value Amid Market Volatility?

![Fixed vs. Variable Energy Tariffs in 2026: Which Offers Better Value Amid Market Volatility?](https://blog.loop.homes/hubfs/Loop%20blog%20why%20should%20you%20switch%20tariffs%20main.png)

 All figures and calculations are correct at the time of publication.

# Fixed vs. Variable Energy Tariffs in 2026: Which Offers Better Value Amid Market Volatility?

Published by [ The Loop Team ](https://blog.loop.homes/author/the-loop-team) on Mar 26, 2026

Energy prices continue to dominate the headlines in 2026. The[ Price Cap](https://blog.loop.homes/understanding-the-energy-price-cap-what-you-need-to-know) is set to fall by 7% in April, dropping the average annual energy bill to £1,641. With ongoing uncertainty in the market, many households are asking the same question: Should I fix my tariff now, or stick with a variable deal? 

Wasted energy makes up 30% of the average energy bill - do something about it! Get more from your smart meter with Loop.

[![Download for FREE](https://no-cache.hubspot.com/cta/default/4794770/3fdbcf98-ff1a-4c35-b95f-880aef378f68.png)](https://cta-redirect.hubspot.com/cta/redirect/4794770/3fdbcf98-ff1a-4c35-b95f-880aef378f68)

#### What are the pros and cons of fixed tariffs?

A fixed tariff locks in your unit rates for a set period, protecting you from future price hikes - but you won’t see the benefits if prices fall. This stability makes it easier to plan and budget. You’ll know exactly what you’re paying for energy each month, regardless of wider market swings. 

However, most fixed tariffs will have an exit fee if you want to switch before the contract has ended. If you spot a better deal and want to switch before the end of your contract, you’ll need to factor these fees into your calculations to see if switching is still worthwhile. 

###### Pros of fixed tariffs:

- Protection from future price increases
- Easier household budgeting

###### Cons of fixed tariffs:

- Exit fees may apply if you leave early
- You won’t benefit if prices fall

![Loop blog why should you switch tariffs 1](https://blog.loop.homes/hs-fs/hubfs/Loop%20blog%20why%20should%20you%20switch%20tariffs%201.png?width=300&height=300&name=Loop%20blog%20why%20should%20you%20switch%20tariffs%201.png)

#### What are the pros and cons of variable tariffs?

Variable tariffs can be beneficial if you value flexibility. Prices will change every 3 months with the price cap, so costs have the potential to rise and fall. It is also easier to switch tariffs or supplier when on a variable contract, as you are not locked in and will not have to pay exit fees. 

Variable tariffs change with the price cap and changes in wholesale prices. Remember, however, that the price cap is only a cap for the amount that suppliers can charge per kilowatt of energy, not an overall cap of how much they can charge you a year. If you use more energy, it is likely that your bill will go over the average annual bill which is currently £1,758 a year.

###### Pros of variable tariffs:

- No exit fees — switch anytime
- Potential to benefit from falling prices

###### Cons of variable tariffs:

- Bills rise if energy prices go up
- Less certainty for budgeting

### Should I fix my energy tariff now?

Choosing to fix your tariff comes down to how much you value certainty versus how much flexibility you want. A fixed tariff locks in your prices for a set period, which is ideal if you want predictable bills. The trade-off is that you won’t benefit if prices drop.

With uncertainty around rising energy prices and the reduction in fixed-term deals, deciding to fix is becoming more complex. Financial expert [Martin Lewis](https://www.moneysavingexpert.com/utilities/are-there-any-cheap-fixed-energy-deals-currently-worth-it/) advises that if you can find a fixed deal that is up to 11% more than the January Price Cap, then you will likely save. However, this is becoming increasingly difficult during this period of uncertainty, as many suppliers are withdrawing their fixed deals

If you are thinking about fixing, and the numbers work for you, then now's the time to start your search for the best energy deal. 

![Planning to switch energy tariff 2 (1)](https://blog.loop.homes/hs-fs/hubfs/Planning%20to%20switch%20energy%20tariff%202%20(1).jpg?width=300&height=300&name=Planning%20to%20switch%20energy%20tariff%202%20(1).jpg)

### Next steps to save on your energy bill:

1. Compare energy tariffs. Services like a switching platform will show you the best energy tariff deals available.
2. Check for exit fees and weigh them against potential savings.
3. Look for fixed deals [**up to 11% more than the January Price Cap**](https://www.moneysavingexpert.com/utilities/are-there-any-cheap-fixed-energy-deals-currently-worth-it/) as they're likely to offer protection and value.

• • •

# Cut Your Energy Bill With Loop

Loop is a FREE energy-saving app that links to your smart meter, analyses your energy use and shows you easy ways to save. On average, Loop users cut their energy use by 15%! *How much could you save? *

[![Download for FREE](https://no-cache.hubspot.com/cta/default/4794770/3fdbcf98-ff1a-4c35-b95f-880aef378f68.png)](https://cta-redirect.hubspot.com/cta/redirect/4794770/3fdbcf98-ff1a-4c35-b95f-880aef378f68)

[Subscribe](https://loop.homes/subscribe/) to our newsletter and become part of the Loop community. Receive regular updates to help you make smart decisions about using less energy.

 

Tags: [Switching](https://blog.loop.homes/tag/switching)

[ Back to blog ](https://blog.loop.homes)

[Share via Facebook ](http://www.facebook.com/share.php?u=https://blog.loop.homes/fixed-vs.-variable-energy-tariffs-in-2025-which-offers-better-value-amid-market-volatility) [Share via Twitter ](https://twitter.com/intent/tweet?url=https://blog.loop.homes/fixed-vs.-variable-energy-tariffs-in-2025-which-offers-better-value-amid-market-volatility&text=Fixed%20vs.%20Variable%20Energy%20Tariffs%20in%202026:%20Which%20Offers%20Better%20Value%20Amid%20Market%20Volatility) [Share via LinkedIn ](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.loop.homes/fixed-vs.-variable-energy-tariffs-in-2025-which-offers-better-value-amid-market-volatility) [Share via Email ](mailto:?subject=https://blog.loop.homes/fixed-vs.-variable-energy-tariffs-in-2025-which-offers-better-value-amid-market-volatility)

## Related Articles

<https://blog.loop.homes/understanding-green-tariffs-how-to-make-the-right-choice>

## [Understanding Green Tariffs: How to Make the Right Choice](https://blog.loop.homes/understanding-green-tariffs-how-to-make-the-right-choice)

 As more people become mindful of their environmental impact, opting for a "green" energy tariff can...

[Read More ](https://blog.loop.homes/understanding-green-tariffs-how-to-make-the-right-choice)

<https://blog.loop.homes/which-tariff-is-right-for-you>

## [Which Tariff is Right for You?](https://blog.loop.homes/which-tariff-is-right-for-you)

 Switching your tariff can feel overwhelming, especially after the energy crisis, when it didn’t...

[Read More ](https://blog.loop.homes/which-tariff-is-right-for-you)

<https://blog.loop.homes/are-batteries-the-future-of-home-energy-0>

## [Are you being over-charged for your energy?](https://blog.loop.homes/are-batteries-the-future-of-home-energy-0)

 Are you one of those rare, super-efficient people who keeps an eagle-eye on their budgeting and...

[Read More ](https://blog.loop.homes/are-batteries-the-future-of-home-energy-0)

[![back to top](https://blog.loop.homes/hubfs/back%20to%20top.svg) ](https://blog.loop.homes/fixed-vs.-variable-energy-tariffs-in-2025-which-offers-better-value-amid-market-volatility#)

![Loop Logo](https://blog.loop.homes/hubfs/raw_assets/public/Loop_Homes_January2024/images/loop-logo-round-corners-white-bgrnd.svg "Loop Logo")

## Take control of your energy bills. Download the FREE Loop app now.

- [![google](https://blog.loop.homes/hs-fs/hubfs/loop_google_play_badge-qig8bfcvrvh957g4esfg7c5r8a263bw5gaizhsrtvk.png?width=199&height=58&name=loop_google_play_badge-qig8bfcvrvh957g4esfg7c5r8a263bw5gaizhsrtvk.png "google")](https://play.google.com/store/apps/details?id=com.trustpower.loop&referrer=utm_source=Website&utm_medium=Footer&utm_campaign=Download%20)
- [![loop_app_store_badge-qig8bfcvrvh957g4esfg7c5r8a263bw5gaizhsrtvk](https://blog.loop.homes/hs-fs/hubfs/loop_app_store_badge-qig8bfcvrvh957g4esfg7c5r8a263bw5gaizhsrtvk.png?width=200&height=58&name=loop_app_store_badge-qig8bfcvrvh957g4esfg7c5r8a263bw5gaizhsrtvk.png "loop_app_store_badge-qig8bfcvrvh957g4esfg7c5r8a263bw5gaizhsrtvk")](https://apps.apple.com/gb/app/loop-energy-smart-meter-app/id1483586889/?utm_source=Website&utm_medium=SmartMeterApp&utm_campaign=Billboard%20)

![loop_powered_by_procode](https://blog.loop.homes/hs-fs/hubfs/loop_powered_by_procode.png?width=200&name=loop_powered_by_procode.png "loop_powered_by_procode")

### About

[About us](https://loop.homes/loop-trust-power/)

[Blog](https://blog.loop.homes/)

[My Account](https://www.loophome.app/)

[Contact us](mailto:support@loop.homes)

[Sign up for FREE](https://www.loophome.app/signup/)

### Follow us

[Facebook](https://www.facebook.com/loophomes)

[X (Twitter)](https://twitter.com/loophomes)

[TikTok](https://www.tiktok.com/@loop.homes)

[Instagram](https://www.instagram.com/loop.homes/)

[YouTube](https://www.youtube.com/@loophomes)

### Stay in the loop

 Subscribe to our newsletter to become part of the Loop community, receive updates and special offers.

Subscribe

© Loop | The leading FREE smart meter app | 2026

[Privacy & Cookies Policy](https://loop.homes/policies/)

 Cookie Settings

![Certificate](https://loop.homes/wp-content/uploads/2026/07/27001-RGB-White.png)

# Stay in the loop

 Subscribe to our newsletter to become part of the Loop community, receive updates and special offers direct to your inbox!

 Close