Energy unit rates cut in January 2026: should you switch?
If your electricity and gas unit rates are due to fall in January 2026, switching could still reduce your bill — but only if the new deal beats your full cost (unit rates, standing charges and your usage). Compare whole-of-market home energy deals in minutes with EnergyPlus.
- Check whether a January 2026 drop makes your tariff competitive — or if you can do better now
- Compare unit rates and standing charges side-by-side (not just the headline)
- Switch without guesswork: fixed vs variable explained in plain UK terms
- No business energy — home-only comparison
We compare home energy tariffs from a whole-of-market panel. Availability depends on your postcode, meter type and eligibility. Prices can change.
January 2026 unit rate cuts: what it means for your home
When energy unit rates fall (the price you pay per kWh), it’s tempting to assume you should stay put and wait for cheaper bills. In reality, your total cost depends on three things:
- Electricity unit rate (p/kWh)
- Gas unit rate (p/kWh)
- Standing charges (p/day) plus how much energy you use
A January 2026 cut can help, but it doesn’t automatically mean your current tariff will become best value. Some plans reduce unit rates but keep higher standing charges, while others may look cheap but don’t suit your usage pattern (for example, high evening electricity use, electric heating, or a heat pump).
Key takeaway: you should switch if the new tariff reduces your estimated annual cost (or monthly direct debit) after including unit rates, standing charges and any exit fees — not just because the headline unit rate has dropped.
Compare whole-of-market home energy deals
Use the form to compare home energy tariffs across a whole-of-market panel. We’ll match results to your postcode and guide you towards deals that can beat your current costs — including cases where January 2026 unit rates have been cut but standing charges still make a difference.
What you’ll get
- Tariffs filtered for your home, meter type and payment method
- Clear comparison of unit rates and standing charges
- Help choosing between fixed and variable options
- Switch support from quote to confirmation
Already know your tariff name? You can still compare — even a small change in standing charges can impact low-usage homes.
Why switching can still make sense after January 2026 rate cuts
Standing charges vary by supplier
A lower unit rate can be offset by a higher daily standing charge. This matters most if you’re a low-usage household or you’re often away from home.
Your usage pattern might suit a different tariff
If you’ve changed how you heat your home, added an EV, installed solar, or started working from home, the “best” tariff for you may have changed too.
Fixing can protect you from future rises
If you value certainty, a competitive fixed tariff can stabilise costs even when the market is volatile — as long as the total price works for your home.
Intro deals can beat your “new” rate
Even after a unit rate cut, other suppliers may still offer better combinations of rates and charges for your region and meter type.
You can avoid rolling onto a poor deal
If your fixed term ends around January 2026, you may move onto a variable tariff. Comparing early helps you stay in control.
Switching is usually straightforward
In most cases there’s no interruption to supply. Your new supplier handles the process and your meter keeps working as normal.
Tip: If you’re a very low user, prioritise standing charge. If you’re a high user (large home, electric heating, EV), the unit rate often matters more.
How to decide if you should switch after January 2026 cuts
1) Find your current costs
Check your latest bill or app for: unit rates, standing charges, payment method and whether you’re in a fixed term. If you have an exit fee, note it.
2) Compare like-for-like
Use your postcode and choose home tariffs with the same fuel(s) (gas, electricity or dual fuel) and similar payment method (direct debit, prepayment where available).
3) Focus on total annual estimate
Pick the deal with the best overall estimate for your usage, not just the lowest unit rate. Standing charges and your consumption make the difference.
Unit rates vs standing charges (why headlines mislead)
The unit rate is what you pay for each kWh used. The standing charge is a fixed daily amount to cover network costs and keeping your home connected. Two tariffs can have identical unit rates but very different standing charges — and that can swing the best choice depending on how much energy you use.
| Tariff | Electric unit rate | Standing charge | Who it may suit |
|---|---|---|---|
| Tariff A | Lowered in Jan 2026 | Higher | Higher-usage homes may still save |
| Tariff B | Similar | Lower | Lower-usage homes may pay less overall |
That’s why EnergyPlus comparisons highlight both the per-kWh price and the daily standing charge, so you can make a decision that fits your household — not a generic average.
Quick self-check: are you likely to benefit from switching?
- You’re on a variable tariff and your bills feel higher than expected
- Your fixed deal ends around late 2025 or early 2026
- Your home usage changed (EV, heat pump, more time at home)
- Your direct debit has increased despite lower Jan 2026 unit rates
- You’ve never compared standing charges for your region
If two or more apply, a comparison is worth doing now.
When is the best time to switch if rates are lower in January 2026?
If your tariff is ending soon
If your fixed term ends around January 2026, start comparing early. Many suppliers allow you to arrange a switch in advance, helping you avoid automatically moving to a less competitive variable tariff.
If you’re already on a variable tariff
A January 2026 unit rate cut may reduce costs, but it might not be the cheapest available for your region. Comparing now can show whether switching immediately saves more than waiting.
If you’re on a fixed tariff with exit fees
Check the exit fee and compare it to likely savings. If the savings over the remaining term exceed the fee, switching can still be worthwhile. If not, you may be better timing your switch for when your fixed term ends.
If you have a smart meter or Economy 7
Your best tariff may depend on day/night usage. Comparing by postcode and meter type is essential — and the cheapest headline unit rate may not apply to your setup.
Common mistakes people make when unit rates fall
Comparing only the unit rate
A tariff with a slightly higher unit rate but much lower standing charge can be cheaper overall for many homes.
Ignoring exit fees and end dates
Switching mid-fix can be great value — but only if the saving beats the exit fee. Knowing when your tariff ends makes decision-making easier.
Assuming the same deal applies nationwide
Rates and standing charges vary by region and distribution network. Always compare for your postcode.
Not updating your usage estimate
If your household changed (new baby, home working, EV), old estimates may point you to the wrong tariff. Updating usage makes comparisons more accurate.
Simple rule: compare on total cost for your home and timeframe. If you’re unsure, use the EnergyPlus comparison form and we’ll help you interpret the results.
Regional and household factors that can change the “best” tariff
Your postcode region
Standing charges and unit rates can vary across Great Britain due to network costs. Comparing with your postcode is essential.
Meter type
Smart meter, traditional meter, Economy 7, or prepayment can change which deals are available and how your costs are calculated.
Payment method
Direct debit tariffs can differ from pay-on-receipt or prepayment. Always compare using your real payment setup.
Heating and hot water
Gas boiler vs electric heating/heat pump affects which rate matters most. High electricity demand homes often benefit most from optimised unit rates.
Home occupancy
If you’re out most days, standing charges can dominate. If you’re at home more, unit rates often drive the biggest changes.
Green preferences
If you prefer renewable-backed tariffs, you can still compare value — just ensure you’re comparing total cost and terms.
FAQs: January 2026 energy unit rate cuts & switching
Will my bill automatically go down in January 2026?
If your tariff’s unit rates and/or standing charges reduce from January 2026, your costs can fall — but your bill also depends on your usage and how your supplier sets your direct debit. Comparing ensures you’re not missing a cheaper option.
If unit rates have been cut, is it better to stay on a variable tariff?
Not always. Variable tariffs can be competitive after a cut, but a well-priced fixed tariff may still offer better total value or stability. The right choice depends on your household costs and preferences.
Could I pay more by switching at the wrong time?
You could if you choose a tariff that’s a poor match for your usage (or if exit fees outweigh savings). That’s why it’s important to compare total annual cost and check any fees before confirming.
Does switching interrupt my gas or electricity supply?
Switching normally happens in the background. Your energy keeps flowing and your meter keeps recording usage. Your new supplier manages the switch process.
What if I don’t know my current unit rate or standing charge?
That’s common. You can still start with your postcode and details. For best accuracy, grab your latest bill later and check the comparison against your actual rates and charges.
Is EnergyPlus for business energy?
This page and form are for home energy only. If you’re looking for business energy, you’ll need a separate comparison route.
Trust and social proof
“Clear comparison”
“I didn’t realise the standing charge was the issue. The comparison made it obvious and the switch was simple.”
Home energy customer, UK
“Helped me decide fixed vs variable”
“Rates were changing and I wasn’t sure what to do. I compared options and chose the one that suited my usage.”
Home energy customer, Great Britain
Whole-of-market panel
We compare a wide panel of home energy suppliers and highlight eligible tariffs for your postcode and meter type, so you can make a confident decision.
EnergyPlus comparison service
What we’re not
We’re not a supplier and we don’t restore supply or handle faults. For emergencies, contact your network operator. For billing questions, your current supplier remains responsible until your switch completes.
Don’t guess — compare your January 2026 rates against the market
If unit rates have been cut, you might save by staying put — or you might save more by switching. Compare whole-of-market home tariffs and see what’s available for your postcode.
Energy comparisons are estimates based on the information provided and tariff availability in your area. Always review tariff terms, prices and fees before confirming a switch.
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