Energy prices remain one of the biggest household expenses in the UK, and for many homes, they are also one of the easiest bills to reduce. Electricity and gas costs can vary significantly depending on your supplier, tariff type, location, and usage.
Despite this, millions of households are still overpaying simply because they have not compared energy prices recently. The UK energy market has stabilised compared to the extreme volatility seen in previous years, but prices continue to change regularly.
The unit rate is the price you pay for each kilowatt-hour (kWh) of electricity or gas you use. Electricity typically has a higher unit rate than gas, but most homes use far more gas overall, especially for heating.
Key point: Always compare unit rates alongside standing charges for a true cost picture.
A fixed daily cost that covers network maintenance, meter costs, and government levies. Standing charges vary by region and supplier and can make a substantial difference to your total annual bill.
Important for: Low-usage households, where standing charges form a larger percentage of the total bill.
When comparing: The total annual cost is far more important than any single component.
Fixed tariffs lock in your unit rates and standing charges for a set term, usually 12 or 24 months. They offer stability and protection against price rises.
Pros:
Cons:
Variable tariffs change in line with market conditions and supplier pricing decisions. The most common example is a standard variable tariff (SVT).
Pros:
Cons:
In most cases, households save more on a competitive fixed tariff, particularly if moving from a standard variable tariff.
Energy prices are not the same across the UK. Your location affects your bill because of regional electricity and gas distribution networks.
Regional network maintenance and upgrade costs vary, affecting standing charges.
Different Distribution Network Operators (DNOs) charge suppliers varying rates.
Suppliers may adjust prices regionally based on competition and market share.
Remote areas may have higher costs due to transportation and infrastructure challenges.
This is why comparing energy prices by city or postcode gives far more accurate results than national averages.
To get a genuine comparison that reflects what you will actually pay, follow these steps:
Base comparisons on your actual electricity and gas consumption from recent bills, not estimates.
Look at the full annual figure including standing charges, not just unit rates or promotional rates.
Review contract length, exit fees, and renewal terms to avoid unexpected costs.
Price matters, but billing accuracy, customer support, and complaint handling also count.
Avoid comparisons that only highlight unit rates or promotional discounts without showing the full cost over a year.
Green energy tariffs are no longer niche or expensive. Many suppliers now offer competitive renewable options.
For households looking to reduce their carbon footprint, switching to a green tariff can now be done without paying a premium.
Many households miss out on savings due to simple mistakes:
Assuming loyalty equals better pricing, when often existing customers pay more than new ones.
Focusing only on unit rates while ignoring significant daily standing charges.
Staying on expensive standard variable tariffs after a fixed deal ends.
Not comparing deals annually or when circumstances change.
A quick comparison once a year is usually enough to avoid overpaying.
In most cases, yes. Customers moving from standard variable tariffs to competitive fixed deals often save hundreds of pounds per year. Even switching between fixed deals can yield significant savings, especially if your current tariff is ending.
At least once every 12 months, or when your current tariff is due to end. Energy prices change regularly, and new deals appear constantly. Setting a calendar reminder for your tariff end date ensures you never miss potential savings.
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 credit score.
Yes, in most cases. Tenants can usually switch as long as they pay the energy bills directly and the meter is not part of a communal system. Check your tenancy agreement, but most landlords allow switching as it doesn't affect the property itself.
Comparing electricity and gas prices remains one of the simplest and most effective ways to reduce household costs. With suppliers competing aggressively and green tariffs becoming more affordable, there has rarely been a better time to review your energy deal.
Even if you are happy with your current supplier, checking the market ensures you are not overpaying and gives you leverage when your tariff ends.
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