Last updated: January 2026
Reviewed by: UK Energy Markets Analyst
Regulator: Ofgem

Compare Gas & Electricity Prices: 2026 UK Savings Guide

Why 2026 Is Crucial for Energy Price Comparison

Gas and electricity prices remain one of the biggest financial pressures on UK households. While the extreme volatility of earlier years has eased, energy costs are still far higher than historic norms, and pricing differences between suppliers have widened again.

In 2026, the gap between households on competitive fixed tariffs and those on default or legacy plans can easily exceed £300–£500 per year. Many consumers are still overpaying simply because they have not compared gas and electricity prices recently or are unsure how to do it properly.

Understanding UK Gas and Electricity Pricing in 2026

Unit Rates

Unit rates are what you pay per kilowatt-hour (kWh) of energy used. Electricity has a higher unit rate than gas, but gas is usually consumed in larger quantities, especially in homes with gas central heating.

2026 average: 24-30p/kWh electricity, 6-9p/kWh gas

Standing Charges

Daily fixed costs that apply regardless of usage. These cover network maintenance, metering, and government/regulatory costs. They vary significantly by region and can disproportionately affect low-usage households.

2026 average: 40-60p/day electricity, 20-40p/day gas

Tariff Structures

  • Fixed tariffs – Prices locked for 12–24 months
  • Standard variable tariffs (SVTs) – Prices can change, usually higher
  • Tracker/flexible tariffs – Linked to market movements

In 2026, suppliers are competing aggressively on fixed deals, especially for new customers.

Average UK Energy Costs in 2026

£850–£1,050 Electricity per year
£900–£1,200 Gas per year
£1,750–£2,200 Combined dual fuel

Households on older standard variable tariffs often pay at the top end or above these ranges.

Potential Savings from Comparing Energy Prices

How Much Could You Save?

On a Standard Variable Tariff

£250–£500/year

The biggest opportunity for cost reduction. Standard variable tariffs are typically the most expensive option available.

Fixed Deal Recently Ended

£150–£350/year

Many households don't realize they've automatically rolled onto higher rates after their fixed period ends.

Haven't Switched in 2+ Years

£300+/year

Loyalty rarely equals better pricing in today's energy market. Regular comparison is essential.

Even households with "good deals" often find meaningful savings when comparing total annual costs.

Dual Fuel vs Separate Suppliers: What's Best?

Option Advantages Best For
Dual Fuel Tariffs One bill and account, often small discounts, simpler switching process Most households, especially those seeking convenience
Separate Suppliers Can sometimes be cheaper, access to specialist tariffs, regional competition benefits Areas with strong competition, low gas usage households, green energy seekers

Fixed vs Variable Tariffs: 2026 Comparison

Fixed Tariffs

  • Price certainty for budgeting
  • Protection against market rises
  • Often cheaper than default tariffs
  • Best for families and larger households
  • Recommended for most consumers

Variable Tariffs

  • Rarely cheapest long-term option
  • Can increase with little notice
  • Best used as short-term stopgaps
  • Suitable for those planning to move soon
  • Higher risk for budgeting

Location Significantly Affects Prices

Gas and electricity prices vary by region due to differences in network costs and standing charges. This is why comparing prices by city or postcode gives more accurate results than national averages.

Regional variations can change your annual bill by £100-£200 even with identical usage.

Green Energy: Cost Comparison in 2026

In many cases, green energy does not cost more in 2026. Renewable electricity tariffs have become increasingly competitive, and many suppliers now offer:

For environmentally conscious households, switching to green energy is now often possible without paying extra.

Frequently Asked Questions About Energy Switching

How often should I compare energy prices?

At least once every 12 months, or when your fixed tariff ends. Energy prices change regularly, and new deals appear constantly. Setting a calendar reminder ensures you never miss potential savings.

Will switching affect my credit score?

No. Switching energy suppliers does not impact your credit rating. Credit checks for energy switching are "soft searches" that aren't visible to other lenders and don't affect your score.

Can renters switch energy suppliers?

Yes, in most cases. If you pay the energy bills directly and have a separate meter, you have the right to choose your supplier. Check your tenancy agreement, but most landlords allow switching as long as you return to the original supplier when moving out if required.

Is it worth switching for small savings?

Yes. Even saving £10–£20 per month adds up to £120–£240 annually. The switching process is quick and free in most cases, making even modest savings worthwhile. Small regular savings are better than no savings at all.

How Much Could You Save in 2026?

For many UK households, comparing gas and electricity prices in 2026 can result in hundreds of pounds in annual savings. With competitive fixed tariffs returning and green options becoming more affordable, staying on an old deal is one of the easiest ways to overpay.

Even if you've compared before, prices change constantly. Taking a few minutes to check the latest deals ensures you're not paying more than you need to.

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