British Gas has launched a new innovative two-year energy tariff called 'Fix & Fall', which allows households to fix their energy bills for two years while enabling them to still benefit if energy costs drop in the meantime.
Unlike conventional fixed-rate energy deals that set a fixed kWh charge per unit of gas and electricity, as well as a fixed daily standing charge (an amount paid daily, no matter how much energy you use), British Gas 'Fix & Fall' introduces a hybrid model designed to automatically adjust if energy prices fall.
How does the British Gas 'Fix & Fall' tariff work?
The 'Fix & Fall' tariff allows households to lock in a set price for the gas and electricity that you use, as well as the daily standing charge, for a two-year period, offering protection against potential wholesale market spikes.
However, customers can still benefit if energy prices drop after the first 12 months of signing up to the new tariff. This means that the tariff’s pricing will be reviewed in line with Ofgem’s cap at that point in time.
The energy price cap, set by the UK's independent energy regulator Ofgem, sets the maximum price that energy suppliers can charge per kilowatt per hour (kWh) and it applies to standard variable and default tariffs. Importantly, the energy price cap does not normally apply to fixed energy tariffs.
Under the terms of the British Gas 'Fix & Fall' tariff:
- If, after 12 months, the energy price cap is lower than the current price cap, the cost of energy under the 'Fix & Fall' will automatically be reduced.
- The comparison is based on average annual energy usage of a typical household, not your personal energy use.
- Any savings will be capped at £50 over 12 months for typical use, which means that you may save more or less based on your actual usage.
Importantly, the cost of energy under the ‘Fix & Fall’ tariff won’t increase if the energy price cap rises after the first 12 months. However, if the regulatory energy price cap falls after the first 12 months, customers are automatically transitioned to a lower rate.
Gary Booker, Managing Director of British Gas, commented: “With Fix & Fall, we want to give customers the real peace of mind that we know they want. Their prices won’t go up for the next two years, but if prices do fall in the next year, then we’ll automatically lower the rates.”
As an additional feature, households signed up to this tariff can participate in the supplier's 'PeakSave' scheme. This incentive provides half-price electricity between 11am and 4pm on Sundays for users who shift their high-energy consumption habits to off-peak weekend hours.
How does the "Fix & Fall" tariff compare to the Ofgem Price Cap and other tariffs?
The energy regulator, Ofgem, calculates the Energy Price Cap quarterly by analysing wholesale costs over rolling three-month timeframes. The energy price cap is usually expressed as an annual figure, based on the average dual-fuel household bill. The latest energy price cap is set at £1,641 and will remain in place until 30th June 2026. However, on 1st July 2026, the energy price cap will increase to £1,862, a rise of £221. This is the price cap that will be referenced for new customers at the launch of the British Gas ‘Fix & Fall’ tariff. Major energy suppliers now provide energy price cap forecasts that stretch as far as mid 2027. Early predictions suggest it could rise a further 4-5% to around £1,925 per year by October 2026.
While the British Gas ‘Fix & Fall” tariff offers a safeguard against these projected increases, it may not represent the absolute cheapest tariff available on the market. The table below outlines how the 'Fix & Fall' tariff context sits against other products currently available in the market.
| Energy Supplier & Tariff | Estimated Annual Bill (Average Use) | Tariff Type |
| British Gas ‘Fix & Fall’ | £1,758 | Fixed Deal for 24 months |
| Outfox Energy - Price Cap Tracker 12M Dual | £1,610 | Tracker Deal |
| Outfox Energy -24-month fixed Dual | £1,695 | Fixed Deal for 24 months |
| Ofgem Price Cap | £1,641.00 (rising to £1,862 from 1st July 2026) | N/A |
Scroll to view full table - Correct at 27.05.26 - Figures based on average usage in the South East of England (Gas = 11,500 kWh per year, Electricity = 2,700 kWh per year)
Is the 'Fix & Fall' tariff right for your household?
The 'Fix & Fall' tariff introduces helpful structural flexibility into a fixed-rate market that is typically rigid. It is primarily suited for risk-averse consumers who value long-term financial certainty but want protection against overpaying if wholesale costs drop significantly during their second year.
The Pros
- Two-year protection: It guarantees your underlying rates will not increase for 24 months, shielding you from volatile market surges.
- Downside adjustment: It removes the primary drawback of standard fixing by passing on up to £50 in savings if the cap declines after year one.
- PeakSave integration: The ability to access half-price electricity on Sundays offers tangible savings for households that can adapt their appliance usage.
The Cons
- Higher initial pricing: The baseline cost may be higher than the cheapest fixed rates currently available from smaller competitors like Home Energy or Outfox Energy.
- Delayed flexibility: The downward price protection does not kick in until after the first 12 months have passed, meaning early market drops will not benefit the consumer.
- Savings Cap: Any automatic savings made as a result of a fall in the energy price cap after 12 months will be capped at £50 over 12 months for a typical dual fuel bill, which means that you may save more or less based on your actual usage.
- Exit fees: As with the vast majority of two-year fixed commitments, an exit fee of £75 per fuel type (gas and electricity) will be applied unless you are switching to another British Gas fixed-rate tariff. This is higher than the exit fee of £50 per fuel type applicable on other British Gas fixed- rate tariffs.
The verdict:
Ultimately, whether the British Gas ‘Fix & Fall’ tariff is the right choice depends heavily on your personal attitude to risk and how much you value peace of mind. With Ofgem's price cap confirmed to jump to £1,862 in July 2026, and early forecasts suggesting it could exceed £1,925 by the autumn due to ongoing wholesale market volatility, opting for a fixed-rate energy tariff will offer protection against future price hikes. The British Gas ‘Fix & Fall’ tariff offers this protection, although it isn't the cheapest fixed-rate energy tariff in the market, while allowing the possibility for your energy bills to drop in the future if the energy price cap falls. However, the amount of any potential saving in the event that wholesale energy prices tumble is capped under the terms of the British Gas 'Fix & Fall' tariff.
If you are considering the British Gas 'Fix & Fall' tariff, before committing, take a moment to check your current energy bills to see exactly what you are paying per kWh and compare the costs against the new British Gas ‘Fix & Fall’ tariff. Then look at the other best fixed-rate energy tariffs available in the market. Also, consider whether the £75 exit fee is a dealbreaker. If you are unsure whether you should fix your energy tariff, read our article 'Should I fix my energy prices?'.
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