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

How to Compare Energy Prices Correctly (UK 2026 Consumer Guide)

Many UK households think they're comparing energy prices correctly — but end up switching to a tariff that looks cheaper and costs more. This guide shows you the right way.

Common Comparison Mistakes

  • Focusing only on unit rates
  • Ignoring standing charges
  • Trusting national "cheapest" lists
  • Comparing without postcode or usage data

The 11-Step Correct Comparison Method

1

Always Compare by Postcode

Energy prices in the UK are regionally priced. Your postcode affects:

  • Unit rates
  • Standing charges
  • Available suppliers
  • Network costs

Key Fact:

Two identical households in different areas can pay very different prices.

Any comparison that doesn't ask for your postcode is inaccurate.
2

Use Realistic Annual Energy Usage

Your annual usage is just as important as your postcode. Energy prices are calculated per kWh used.

If you estimate incorrectly:

  • Cheap tariffs can look expensive
  • Expensive tariffs can look cheap

Typical UK Usage (Guide Only)

Low Usage

Flats, single occupants

Medium Usage

Small families

High Usage

Large households, electric heating

3

Compare Total Annual Cost — Not Headlines

The most common mistake is comparing unit rates or standing charges only.

Your energy bill formula:

(Unit rate × usage) + (standing charge × 365)

A tariff with low unit rates but high standing charges can cost more than one with slightly higher unit rates but lower standing charges.

4

Understand Standing Charges vs Unit Rates

Standing Charges

  • Fixed daily cost
  • Paid even if you use zero energy
  • Crucial for low-usage homes

Unit Rates

  • Cost per kWh
  • Matter most for high-usage households
  • Usage-based pricing

Correct comparison balances both, based on your usage.

5

Fixed vs Variable Tariffs — Know the Difference

Fixed Tariffs

  • Prices locked for 12–24 months
  • Often cheaper than price cap
  • May include exit fees
  • Best for long-term savings

Variable Tariffs

  • Track the Ofgem price cap
  • No exit fees
  • Usually more expensive long-term
  • Best as short-term option
6

Don't Be Misled by the Energy Price Cap

The price cap:

  • Is not the cheapest tariff
  • Only applies to variable tariffs
  • Does not limit fixed deals

Important:

Many fixed tariffs in 2026 are priced below the cap. Comparing against the cap alone is not enough.

7

Compare Electricity and Gas Together — and Separately

Dual fuel tariffs can offer convenience, but:

  • They are not always the cheapest
  • Electricity and gas prices behave differently

Always compare both options to see which is truly cheaper.

8

Check Contract Terms and Exit Fees

A tariff may look cheap but include:

  • Long contract terms
  • High exit fees
  • Expensive renewal pricing

Always check:

  • Contract length
  • Exit fees
  • What happens after the fixed period ends
9

Careful with "Cheapest Supplier" Claims

There is no single cheapest energy supplier in the UK. Prices vary by:

  • Postcode
  • Usage
  • Tariff type
  • Time of year

Warning:

Any site claiming a universal cheapest supplier is misleading.

10

Understand Green vs Standard Energy Pricing

In 2026:

  • Green electricity often costs the same
  • Many renewable tariffs are cheaper than standard ones
  • Fixed green tariffs frequently beat the price cap

Don't assume green energy is more expensive — compare properly.

11

Special Meter Considerations

If you have:

  • A prepayment meter
  • Economy 7
  • An EV or smart tariff

Important:

You must compare tariffs designed for your meter type. Standard comparisons may not apply.

Do You Need Contact Details to Compare Energy Prices?

You can view energy prices instantly without providing contact details. Basic price comparisons are available immediately.
Contact details are needed to receive a tailored quote, confirm eligibility, or complete a switch.

Basic contact details are required by suppliers, in line with Ofgem rules. All comparisons follow strict UK data protection standards.

Why UtilityKing Helps You Compare Energy Prices Correctly

Compares prices by postcode — regional accuracy matters
Uses realistic usage assumptions based on your household
Ranks by total annual cost not just unit rates or standing charges
Shows savings clearly with transparent comparisons

No misleading shortcuts. Just accurate comparison.

Compare Energy Prices Correctly & Save £100s

Comparing energy prices correctly can save hundreds per year — but only if you use postcode-based data, compare total annual cost, and understand tariff structures.

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