Cheapest Fixed Energy Deals 2026: Octopus vs E.ON Next

Last updated: Thursday 29 October 2026 (Europe/London).
Next update: when Ofgem announces the January–March 2027 cap (due by 25 November 2026), or sooner if fixed prices move.
By: Switch Editorial Team, Switch Squid Ltd

As of 9 October 2026, Ofgem’s price cap is £1,723 a year for a typical dual-fuel home paying by Direct Debit, and the cheapest route below it is a cap-tracking tariff such as E.ON Next Pledge, which E.ON Next prices about £50 a year under the cap at average use. If you want a fixed price instead, Octopus 18M Fixed works out at about £1,789 a year on average across Great Britain’s 14 regions, about £66 above the current cap but below every January 2027 forecast we track (£1,999 to £2,084).

Your own quote depends on your postcode, meter and how much energy you use, so treat these figures as a starting point. The buttons on this page open MoneySuperMarket’s home energy comparison, where you can enter your postcode for live quotes. SwitchSquid may earn a commission if you switch through them.

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Option 1: E.ON Next Pledge (below the cap)

E.ON Next’s Next Pledge is a 12-month fixed-term tracker. Its rates move when the Ofgem cap is reviewed, but E.ON Next says they always stay below the cap. At average dual-fuel use the saving is about £50 a year (£25 per fuel, taken off the unit rates). Against the current £1,723 cap that works out at roughly £1,673 for a typical home, though your region and usage will change the figure.

There’s no fee to move to another E.ON Next tariff, and a £25 exit fee per fuel if you leave for another supplier. You’ll need to pay by Direct Debit and have a smart meter fitted where possible. The catch: because it tracks the cap, your bill still rises in January if the cap does. Check the live price on E.ON Next or through MoneySuperMarket before you switch.

Option 2: Octopus 18M Fixed (about £1,789)

Octopus Energy re-priced its fixed tariffs on 9 October 2026. Using Octopus’s published Direct Debit rates at typical use (2,500 kWh of electricity and 9,500 kWh of gas a year), we averaged the 14 regions. Octopus 18M Fixed comes out at about £1,789 a year (roughly £1,728 to £1,859 depending on region; London about £1,768), with a £75 exit fee per fuel. The 12-month version, Octopus 12M Fixed, averages about £1,896.

That 18-month fix costs about £66 more than the current £1,723 cap. It only pays off if the cap rises as forecast in January and stays higher for long enough to make up the difference. These are our own averages from Octopus’s published rates, not quotes, so get a price for your postcode before you decide.

The £1,723 cap: what it is and isn’t

Ofgem’s typical bill for 1 October to 31 December 2026 is £1,723 for a dual-fuel home paying by Direct Debit, based on 2,500 kWh of electricity and 9,500 kWh of gas a year. The average rates behind it are roughly 26.32p/kWh for electricity with a 54.83p a day standing charge, and 7.97p/kWh for gas with a 29.68p a day standing charge. Electricity VAT is 0% from 1 October 2026 to 30 June 2027 (extended at the Budget, GOV.UK says).

The cap limits unit rates and standing charges, not your total bill. If you use more energy, you pay more. Region, meter type and payment method all move the figure too.

Where January 2027 could land

Ofgem will confirm the January–March 2027 cap by 25 November 2026. As of 9 October, Cornwall Insight forecasts £1,999.28 (30 September) and uSwitch’s average of British Gas, EDF and E.ON Next predictions is £2,084 for January and £2,074 for April–June 2027 (as of 8 October). These are forecasts, not Ofgem figures. Our January 2027 price cap forecast guide compares them in full.

Weighing a below-cap tracker against a fix? Our guide to tracker vs fixed energy below the price cap sets E.ON Next Pledge, British Gas Fixed Tracker and Octopus 18M Fixed side by side.

Cap, tracker or fix: October 2026 comparison

Question	Stay on the cap (standard variable)	Below-cap tracker (E.ON Next Pledge)	18-month fix (Octopus 18M Fixed)
Typical yearly cost now	£1,723 (Ofgem, Oct–Dec 2026)	About £50 a year under the cap at average use	About £1,789 (14-region average; London about £1,768)
If January’s cap is £2,084 (uSwitch average)	£2,084	Still about £50 under the cap	Unchanged at about £1,789
How prices move	Every quarterly Ofgem review	Follows the cap, staying below it	Unit rates and standing charges fixed for the term
Best for	People who expect prices to fall and will re-compare	People who want a guaranteed discount without locking in	People who want certainty through winter and beyond
Exit fees	None	£25 per fuel to leave E.ON Next	£75 per fuel

Compare fixed energy deals (MoneySuperMarket)

A fix locks your unit rates and standing charges for the term
Check exit fees before you choose
Compare the yearly total against the price cap figures in this guide

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How to find the cheapest fix for your home

Find your real usage. Your annual statement shows your kWh for the last 12 months. Using it instead of the typical figures gives a far more accurate comparison.
Work out your current yearly cost. Use the rates on your latest bill or app, not the national average.
Compare at least three fixed quotes and a tracker for the same usage and payment method.
Add exit fees if you’d be leaving an existing fix early. Most suppliers let you leave without a fee in the last 49 days of a fixed term.
Check single-fuel deals too. Dual fuel isn’t automatically cheaper once two standing charges are added up.
Fix only if the yearly total wins for your meter and your appetite for risk.

Direct Debit, prepayment and Economy 7

The £1,723 figure is for dual fuel on Direct Debit. Prepayment, standard credit and Economy 7 each have their own cap levels. If you’re on Economy 7, compare multi-rate fixes and check how much you use at peak and off-peak times. A cheap overnight rate won’t help if most of your heating or car charging happens during the day.

Standing charges and regions

Standing charges can decide a comparison. Two single-fuel fixes can look cheap on unit rates and still cost more than one dual-fuel deal once both daily charges are added. Regional network costs also mean a London price isn’t a Glasgow price, which is why the Octopus 18M average above runs from about £1,728 to £1,859 depending on where you live.

What “cheapest” should mean

The cheapest deal is the one with the lowest yearly total for your meter, payment method and usage once fees are included. A deal that tops a comparison table for someone else may not win for you. That’s why we quote figures we can check against the supplier’s own published rates and point you to a postcode comparison for the rest.

A tariff won’t replace draught-proofing, radiator valves or a serviced boiler. With the heating coming on, a sensible thermostat schedule can matter as much as a small difference in unit rates.

Check dual-fuel deals for your address (MoneySuperMarket)

Gas and electricity from one supplier, with both standing charges in the total
Have your yearly kWh for each fuel ready
Suppliers should switch you within five working days, and your supply is not interrupted

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FAQ

What is the cheapest fixed energy deal in 2026?

It depends on your postcode and usage. Of the deals we can check against suppliers’ own rates, Octopus 18M Fixed averages about £1,789 a year across the 14 regions as of 9 October 2026. E.ON Next Pledge isn’t a fix but stays about £50 a year below the cap at average use. Compare quotes for your address to see which is cheapest for you.

Is the Ofgem price cap £1,723?

Yes. £1,723 is Ofgem’s typical yearly bill for a dual-fuel home paying by Direct Debit from 1 October to 31 December 2026. It caps rates, not your total bill, so you’ll pay more if you use more.

Is a fixed deal above the cap worth it?

It can be. Octopus 18M Fixed costs about £66 more than the current cap, but every January 2027 forecast we track is higher, between £1,999 and £2,084. If the cap rises as forecast, the fix could save money over 18 months. If wholesale prices fall instead, it may cost more.

Should I fix before Ofgem’s November announcement?

Get a quote now. If a fix for your postcode beats your current yearly cost once exit fees are included, fixing protects you from January’s forecast rise. If nothing beats it, a below-cap tracker or waiting until 25 November are both reasonable choices.

What exit fees should I expect?

Octopus 18M Fixed charges £75 per fuel if you leave early. E.ON Next Pledge charges £25 per fuel if you leave for another supplier and nothing to move to another E.ON Next tariff. Standard variable tariffs have no exit fee.

Does the electricity VAT cut change the maths?

Electricity VAT is 0% from 1 October 2026 to 30 June 2027 (extended at the Budget, GOV.UK says), and it applies to fixed and variable tariffs alike. Ofgem’s £1,723 figure already reflects it. Use your own bill and a live quote rather than the national average.

Sources

Ofgem, energy price cap 1 October to 31 December 2026: ofgem.gov.uk
E.ON Next, Next Pledge tariff: eonnext.com
Octopus Energy, published rates for Octopus 18M Fixed (9 October 2026 version): api.octopus.energy
uSwitch, energy price cap guide (supplier predictions as of 8 October 2026): uswitch.com
Cornwall Insight, January forecast (30 September 2026): cornwall-insight.com

Related guides: fixed versus standard variable, energy exit fees and our home energy guides. This guide covers household energy only.

Affiliate disclosure: SwitchSquid may earn a commission if you switch through MoneySuperMarket. It doesn’t change the figures we quote or the order of options on this page.