Are energy unit rates expected to drop in 2026?

Some forecasts suggest electricity and gas unit rates could ease in 2026, but prices are not guaranteed and can change with wholesale markets, policy costs and network charges. The best approach is to compare what you pay today with the real savings available from switching now, rather than waiting on predictions.

Should I switch my energy tariff now or wait until 2026?

If you can switch to a cheaper tariff today, you start saving immediately. Waiting only makes sense if you’re on a highly competitive deal or if exit fees would outweigh the savings. A quick quote lets you see potential savings and decide with confidence.

What matters more: unit rate or standing charge?

Both affect your bill. The unit rate drives the cost of the energy you use, while the standing charge is a daily fixed cost. Low users often benefit from a lower standing charge; higher users usually benefit more from a lower unit rate. Compare the full estimated annual cost, not just one number.

How do I know if switching will actually save me money?

Compare your current tariff’s unit rates, standing charges and any exit fees to a new tariff’s total estimated annual cost based on your usage. If you don’t know your exact usage, use your latest bill or an estimate. You can also request a personalised quote from Energy Plus to see savings clearly before you commit.

Is it safe to switch energy suppliers?

Yes. Switching is regulated in the UK and your energy supply won’t be interrupted. Your new supplier handles the switch and you’ll typically receive a final bill from your old supplier after the changeover.

How long does it take to switch to Energy Plus?

In most cases, switching completes within a few working days. You’ll be kept informed of key dates, and your supply stays on throughout the process.

Will I pay an exit fee if I switch now?

Some fixed tariffs include exit fees, while many variable tariffs do not. Check your current tariff terms or your latest bill. If there is an exit fee, compare it against the savings you’d make by switching—if the savings exceed the fee, switching can still be worthwhile.

Can I switch if I’m in debt to my current supplier?

Often, yes—especially if you agree a repayment plan. If you have a prepayment meter or certain debt levels, there may be extra steps. If you’re unsure, contact Energy Plus for guidance before starting a switch.

What information do I need to get an Energy Plus quote?

Have your postcode and either your annual usage (kWh) or a recent bill to hand. If available, your MPAN (electricity) and MPRN (gas) help ensure the quote is accurate.

What’s the best way to act if unit rates drop later?

If prices fall, you can review your tariff again at that time. If you choose a tariff with no or low exit fees, you may keep flexibility to switch later. The key is to avoid overpaying today while waiting for uncertain future reductions.

Energy unit rates are expected to fall in 2026 — should you switch now?

If UK energy bill unit rates drop in 2026, it can be tempting to wait. But the best choice depends on your current tariff, how prices are changing, and what protection you want from sudden rises. Compare whole-of-market home energy deals with EnergyPlus and see whether switching today could reduce your costs or give you more certainty.

Check if a fixed tariff could beat today’s Standard Variable Tariff (SVT)
See your estimated annual cost across whole-of-market home energy options
Understand exit fees, switching timelines and when waiting may make sense

Compare tariffs & switch Read the 2026 guide

Home energy only. Switching typically completes in around 2 working days for eligible switches. Always check tariff terms, standing charges and any exit fees before you change.

Compare home energy tariffs and decide whether to switch

Searches for “energy bill unit rates dropping 2026 should I switch” usually come down to one question: will waiting save more than switching now? The honest answer is: it depends on the gap between your current costs and the best available deals today, plus how much price certainty matters to you.

EnergyPlus is a whole-of-market comparison service for UK households. Fill in the form to see options available for your postcode, including fixed and variable tariffs (availability varies by supplier and region). We’ll show estimated annual costs using your usage info, and highlight key terms such as unit rates, standing charges and exit fees.

Tip: Even if unit rates fall later, switching can still make sense if you’re currently on a costly SVT, or if a fixed deal includes low standing charges and no (or low) exit fees.

Get your personalised comparison

Complete the form and we’ll show available home energy tariffs for your area.

Important: Predictions about 2026 prices aren’t guarantees. Use comparisons to make decisions based on the best information available today, and focus on your personal usage and tariff terms.

If unit rates drop in 2026, should you switch now or wait?

When headlines say unit rates are dropping in 2026, it usually refers to expectations around wholesale costs, policy changes, or potential movements in Ofgem price cap levels. For households, your actual bill is affected by:

Unit rate (pence per kWh): what you pay per unit of gas or electricity you use.
Standing charge (pence per day): a daily fixed cost, even if you use little energy.
Your consumption: how many kWh you use across the year (often higher in winter).
Your tariff type: fixed vs variable, and whether you’re on a SVT.
Regional network costs: can vary by area, affecting rates and standing charges.

Switching now can make sense if…

You’re on a Standard Variable Tariff and available fixes are meaningfully cheaper.
You want budget certainty through winter, even if prices fall later.
The tariff has no exit fees (or low exit fees), so you can move again if rates drop.
Your current tariff is ending soon and you’ll be rolled onto a SVT.

Waiting can make sense if…

You’re already on a competitive fixed tariff with reasonable rates.
You’d face a high exit fee for leaving before the end date.
You can tolerate short-term price movement and prefer to reassess later.
You’re planning a home change (moving house) and want minimal admin.

Practical approach: Compare today, then choose a tariff that suits your risk level. Many households look for a fix that is competitive now, and ideally flexible enough to switch again if 2026 pricing improves.

Why UK households switch energy tariffs (even when rates might fall)

Lower total annual cost

It’s not just the unit rate. A tariff with a slightly higher unit rate but a lower standing charge (or vice versa) can work out cheaper depending on your usage.

Price certainty

A fixed deal can protect you against unexpected price rises, helping you plan. This matters most if your household budget is tight.

Avoiding SVT rollovers

When a fixed tariff ends, many customers are moved onto a supplier’s SVT. Comparing before the end date can prevent bill shock.

Better tariff features

Depending on the deal, you may find improved customer support options, app features, or flexible payment arrangements.

A clearer view of your usage

Comparing encourages you to estimate your annual kWh usage, which can reveal opportunities to cut consumption and reduce bills.

Regional price differences

Energy pricing can vary by region. A whole-of-market comparison helps you see what’s genuinely available where you live.

Unit rates, standing charges and the Ofgem price cap: what to focus on

If you’re trying to decide whether to switch before potential 2026 falls, focus on your total expected annual cost rather than a single headline rate. Here’s a practical way to think about it.

Cost element	What it means	Why it matters if rates drop
Unit rate (kWh)	What you pay per unit of energy used.	If you lock into a fix, you may not benefit from future unit-rate drops until you switch again.
Standing charge	A daily fixed charge, regardless of usage.	Even if unit rates fall, a high standing charge can keep bills higher—especially for low-usage homes.
Ofgem price cap (SVT)	A limit on what suppliers can charge for SVT/default tariffs (it’s a cap on rates, not your total bill).	If the cap level falls, SVT prices may reduce—but fixed tariffs may or may not track that movement.
Exit fees	A charge for leaving a fixed tariff early (not always applied).	A tariff with high exit fees can make it harder to benefit from later drops if you want to move in 2026.

Quick calculation mindset: Compare (unit rate × your kWh usage) + (standing charge × 365). That’s closer to your real-world annual cost than focusing on a single p/kWh figure.

Switching checklist: what to check before you decide

Use this checklist to decide whether switching now is a good move—even if you believe unit rates may fall in 2026.

Find your current tariff details
Check your latest bill or online account for your unit rates, standing charges, and tariff end date.
Estimate your annual usage (kWh)
Use your bills, smart meter app, or supplier account history. If unsure, use your last 12 months.
Check for exit fees
If you’re on a fixed tariff, see whether leaving early costs money and when the fee stops applying.
Compare like for like
Look at electricity and gas rates separately (and payment method), then compare annual costs for your usage.
Choose your risk level
Prefer certainty? Consider fixed. Prefer flexibility? Consider tariffs with low/no exit fees, or re-check deals regularly.
Switch and take a meter reading
When you switch, submit an accurate meter reading (or ensure smart meter readings are up to date) to avoid billing issues.

Moving home soon? You can still compare, but you may prefer a tariff with more flexibility to avoid admin if you move before the end of a fixed term.

Ready to see real options for your home? Use the comparison form and we’ll show what’s available.

Common mistakes when switching based on predicted 2026 price drops

Only comparing unit rates

Some tariffs look great on p/kWh but have higher standing charges. Your usage level determines which structure is cheaper overall.

Ignoring tariff end dates

If your fix ends soon, you could be moved onto a SVT. Comparing early gives you control and time to choose.

Overestimating certainty of forecasts

Forecasts can change. Focus on what you can control: your current tariff, your usage, and the best deal available now.

Choosing a fix with costly exit fees

If prices do fall in 2026, a high exit fee can reduce or remove the benefit of switching again. Always check the terms.

FAQs: energy unit rates dropping in 2026

Will my bill definitely be cheaper in 2026?

Not guaranteed. Bills depend on unit rates, standing charges, your usage, and your tariff. Predictions can change with wholesale prices and policy factors.

If I fix now, can I switch again in 2026?

Usually yes, but some fixed tariffs include exit fees. A flexible fix (or a deal with low/no exit fees) can make switching later easier.

How long does switching take in the UK?

Many switches can complete quickly (often around 2 working days for eligible switches), but timings can vary. Your supply won’t be interrupted.

Do I need a smart meter to switch?

No. You can switch with or without a smart meter. You’ll typically be asked for a meter reading during the process.

What if I use very little energy?

Standing charges can matter more for low-usage households. Compare tariffs using your usage profile so you don’t overpay on fixed daily costs.

Is this page for business energy?

No. This guidance and the comparison form are for home energy in the UK. If you need business energy, use the relevant business service.

Still unsure? Compare tariffs for your postcode to see what switching would look like for your home.

Trust signals: why households use EnergyPlus

Whole-of-market comparison

We compare available home energy options so you can make a decision based on real tariffs, not headlines.

Clear explanations

We help you understand unit rates, standing charges, tariff terms and what they mean for your bill.

Simple switching journey

Give a few details, see your options, and take the next step when you’re ready.

“Clear, no-nonsense comparison and it helped me understand standing charges.”

— UK homeowner, online enquiry

“I was waiting for prices to drop, but the comparison showed I could save now.”

— UK household, tariff comparison

Testimonials are representative feedback and may not reflect every customer’s experience. Savings vary by supplier, region, usage and tariff availability.

Don’t guess what 2026 will bring — compare your options today

If unit rates fall later, you can still benefit by choosing the right tariff now (especially if it’s competitive and flexible). Use our whole-of-market comparison to see what’s available for your home.

See estimated annual costs based on your details
Understand unit rates, standing charges and key terms
Start switching with confidence

Compare tariffs (takes minutes)

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Updated on 14 Feb 2026