Energy comparison should be simple: compare prices, switch supplier, save money. Yet millions of UK households still overpay every year — not because comparison tools don't work, but because energy pricing is misunderstood. This guide answers the most common questions properly, with full explanations — not shortcuts.
Average annual overpayment
Typical switch time
Never switched suppliers
Million households overpaying
When you compare energy prices, you are not just comparing suppliers. You are comparing:
True energy comparison is about total annual cost, not advertised rates. Two households on the same tariff can pay very different amounts depending on usage patterns.
A unit rate is the cost per kilowatt-hour (kWh) of energy used. While important, unit rates alone are misleading because:
A tariff with a low unit rate but high standing charge may be more expensive overall than one with a higher unit rate but lower fixed costs.
A standing charge is a daily fixed fee paid regardless of energy usage. It covers:
Even households that barely use energy still pay standing charges. For low-usage households, standing charges can make up more than half of the total bill, which is why "no standing charge" tariffs sometimes work better — but only in specific situations.
Energy prices vary by region because:
This is why postcode-accurate comparison is essential. A tariff that is cheapest in London may not be cheapest in the North or Scotland.
Fixed Tariffs lock in your unit rates and standing charges for a set period. They provide price certainty, protection from market increases, and easier budgeting. They are usually best for households that value stability.
Variable Tariffs change prices when the supplier decides (with notice). They offer flexibility and no exit fees, but prices can rise at any time and they rarely offer the cheapest long-term cost.
Most households save more on fixed tariffs, especially in volatile markets.
The Ofgem energy price cap limits the maximum amount suppliers can charge per unit for customers on standard variable tariffs.
Important clarifications:
If you are on a fixed tariff, the price cap does not protect you — but fixed tariffs can still be cheaper.
In 2026, not necessarily.
Many renewable tariffs:
Green energy is no longer a premium product — comparison matters more than labels.
If you do nothing:
Many households overpay for years simply by staying put.
Switching energy supplier is:
There is:
The biggest risk is not switching at all.
Yes. You can:
Contact details are only required when:
Reputable platforms (like UtilityKing) do not require contact details just to browse.
Yes, unless energy is included in your rent.
If you pay energy bills directly to a supplier, you have the right to switch regardless of renting status. You do not need landlord permission to switch suppliers, but you cannot switch if your landlord pays the energy bills directly.
You should compare:
Energy markets change — the best deal today may not be best next year.
Yes.
Smart meters improve accuracy but are not required for:
However, some tariffs (EV, time-of-use) require smart meters.
Without a smart meter, comparison uses estimated or historical usage — still effective for most households.
No. Switching energy supplier does not affect your credit score.
Energy suppliers may perform a soft credit check during switching, but this does not impact your credit rating. Unlike mortgages or credit cards, energy switching is not recorded as credit activity.
Business energy:
Business customers should compare earlier and more frequently to avoid expensive deemed rates.
Only if you switch mid-contract.
Exit fees typically range from £25–£75 per fuel. If you wait until your contract ends, there are no exit fees. Many households still save money even after paying exit fees — calculate the saving before deciding.
The Ofgem energy price cap is widely misunderstood. Here's what it really means for your bills.
Key takeaway: The price cap is a safety net, not a savings tool. Fixed tariffs below the cap are often cheaper.
"The cheapest tariff is always the best."
The best tariff is the one with the lowest total annual cost for your usage. A cheap headline rate with high standing charges or peak rates can be more expensive overall.
"Will prices drop if I wait?"
No one can time the market consistently. Comparison beats waiting. The best time to switch is when you find a competitive fixed deal that works for your usage.
"All comparison sites are the same."
Some are independent, some are owned by suppliers, some only show certain tariffs. Transparency matters — check how they're funded and whether they show the whole market.
"Switching takes weeks and risks interruption."
False. Switching takes 5 working days on average. There is no interruption to supply, no engineer visit, and your meter doesn't change.
| Feature | Fixed Tariff | Variable Tariff |
|---|---|---|
| Price certainty | ||
| Exit fees | ||
| Price cap protection | ||
| Best for | Stability, budgeting, long-term savings | Flexibility, short-term stays |
| Typical savings | £100–£400 vs SVT | Usually more expensive long-term |
Verdict: Fixed tariffs are cheaper for the vast majority of households. Variable tariffs only make sense if you need flexibility or can't commit to a contract.
Compare 40–60 days before your contract ends. You can switch immediately when you find a better deal — don't wait until the last day.
Energy prices vary by region. Always use postcode-accurate comparison tools — a cheap tariff in your neighbour's area may not be available to you.
Mark your calendar. When your fixed deal ends, you'll be rolled onto a standard variable tariff — usually much more expensive.
If you start working from home, buy an EV, or install solar, your optimal tariff changes. Re-compare after major life changes.
Energy comparison works — but only when done correctly. The biggest savings come from understanding tariffs, comparing total annual costs, matching tariffs to usage, and reviewing regularly.
✅ SMART COMPARISON CHECKLIST
Stop guessing — start saving • No contact details required to browse • Ofgem accredited