Switching Energy Supplier in 2026/27 — Is It Worth It Under the Price Cap?
Whether switching energy supplier still saves money now most default tariffs sit near the Ofgem price cap, and how to compare fixed deals for 2026/27.
Why Switching Still Matters Even With a Price Cap
The Ofgem price cap protects customers on default tariffs from being charged more than the capped unit rates and standing charges, but it doesn't mean every tariff on the market sits exactly at that level. Suppliers competing for new customers can and do offer fixed-term deals priced below the current cap, particularly during periods of relatively stable or falling wholesale costs, so there can still be a genuine saving available from actively comparing and switching rather than remaining on a default tariff by default.
Default Tariff vs a Fixed Deal
| Option | What it means |
|---|---|
| Staying on the default (standard variable) tariff | Rate follows the Ofgem cap, resetting quarterly; no long-term commitment |
| Switching to a fixed-term deal | Rate locked for the contract term; may be below or above the current cap depending on the offer and timing |
A default tariff offers the flexibility of no fixed-term commitment and automatic protection from exceeding the cap, but doesn't guarantee the lowest available rate — a fixed deal can offer a lower rate for price certainty over the contract term, though it locks you in (subject to any exit fee) even if the cap were to fall below your fixed rate during that period, which is the trade-off inherent in fixing.
Exit Fees and Timing a Switch
Fixed-term energy deals sometimes include an early exit fee for leaving before the contract term ends, designed to discourage customers from switching away shortly after signing up for a fixed rate. Most suppliers waive this fee in the final weeks before a fixed deal's natural end date specifically to make it easy to shop around and switch ahead of automatically rolling onto a default tariff, so timing a switch to align with your existing deal's end date (or checking whether you're already within the fee-free window) is worth doing before committing to pay an exit fee unnecessarily.
Smart Meter Compatibility When Switching
Concerns about smart meters losing their "smart" functionality after switching supplier were a genuine issue with some earlier generation meters, which could revert to requiring manual readings if the new supplier's systems weren't compatible with the meter's specific technology. This compatibility problem has been substantially addressed for most meters now in use, though it's still reasonable to ask a prospective new supplier directly whether your specific meter model will retain full smart functionality after a switch, particularly if you're on an older first-generation device.
Comparing Your Options Before Switching
- Check your current tariff — default (capped) or fixed-term — and any applicable end date
- Compare available fixed deals against the current price cap level for your usage
- Check for any early exit fee on your existing deal and whether you're within a fee-free switching window
- Confirm smart meter compatibility with a prospective new supplier if you have an older meter
Use the energy bill and electricity cost calculators below to compare your current tariff cost against alternative deals.
Frequently asked questions
Is switching energy supplier still worthwhile now that the price cap limits default tariffs?
It can still be worthwhile — the price cap sets a ceiling for default tariffs, but fixed-term deals from various suppliers can sometimes be priced below the cap level when suppliers are competing for new customers, so comparing available fixed deals against your current default tariff rate is still worth doing periodically, even though the gap has generally narrowed compared to the pre-cap era.
What happens if I don't switch and just stay on my supplier's default tariff?
You'll pay the capped default tariff rate, which resets every quarter in line with Ofgem's review, and while it's no longer possible to be charged above the cap on a default tariff, you may be missing out on a cheaper fixed deal if one happens to be available below the current cap level.
Are there exit fees for switching away from a fixed-term energy deal early?
Some fixed-term deals include an early exit fee if you leave before the term ends, though this is generally waived in the final weeks before the deal's end date to allow switching without penalty ahead of automatically rolling onto a default tariff — it's worth checking your specific contract's terms before switching mid-term.
Does switching supplier affect my smart meter functionality?
Most modern smart meters continue to work in smart mode after switching supplier, but some older or first-generation smart meters have historically lost smart functionality (reverting to manual-read mode) when the customer switched to a different supplier, though this compatibility issue has been substantially resolved for most meters now in use.
Try the calculators
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