{"id":7143,"date":"2017-03-26T11:19:05","date_gmt":"2017-03-26T10:19:05","guid":{"rendered":"http:\/\/www.finder.com\/uk\/?page_id=7143"},"modified":"2025-12-02T16:29:06","modified_gmt":"2025-12-02T16:29:06","slug":"energy","status":"publish","type":"page","link":"https:\/\/www.finder.com\/uk\/energy","title":{"rendered":"Compare energy suppliers"},"content":{"rendered":"

We\u2019ve seen energy bills fall due to cuts in the energy price cap. For a typical household that uses gas and electricity and pays by direct debit, the cap dropped on 1 July 2024 from \u00a31,690 to \u00a31,568 per year \u2013 a reduction of \u00a3122, or around 7%. That\u2019s a long way from the eye-watering \u00a33,280 price cap on 1 April 2023, but is still a significant sum and it may rise again later in 2024.<\/p>

You may already be on the cheapest deal, but some households can cut their bill by switching, so it\u2019s worth checking.<\/p>

Here we\u2019ve set out what you need to know, from the types of tariffs to a step-by-step guide to switching.<\/p>

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\n \n \n <\/circle>\n <\/path>\n <\/svg>\n <\/span>\n Energy jargon explained<\/span>\n <\/h4>\n
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Tariff.<\/strong> A tariff is a pricing plan that energy providers use to charge customers for their electricity and gas use. The price you pay for your energy use will depend on the tariff you sign up for, like a mobile phone plan.
Kilowatt-hour (kWh).<\/strong> A kilowatt-hour is the unit of energy that suppliers use to bill households for their energy use. Each energy tariff will charge customers an amount per kWh used.
Standing charge.<\/strong> Energy suppliers also typically charge a fixed daily fee for providing you with energy, no matter how much you use. This is charged for each energy source, so if you have gas and electricity you\u2019re charged 2 separate standing charges. Customers who pay by monthly direct debit will usually receive a bill listing 2 amounts: the cost of energy used and the total standing charge for that period.<\/p>\n <\/div>\n <\/div>\n<\/div>\n

What types of electricity and gas tariffs are there?<\/h3>

We\u2019ve set out the key need-to-knows for the different types of energy deals available, including any fees involved.<\/p>

Standard tariff<\/h4>

This type of energy tariff, sometimes called a standard variable rate (SVR) or \u201cdefault\u201d tariff, is one where the unit price you pay for your energy can go up and down with the energy market. You\u2019re not locked into a contract, so if you find a cheaper tariff elsewhere<\/a> you can switch without any exit fees. But these tariffs are rarely the cheapest deal.<\/p>

Fixed tariff<\/h4>

This locks in the unit price of your energy for a period of time: 1, 2, 3 or even 5 years. This can be a way to guard against future price increases caused by fluctuations in the energy market. However, you\u2019ll typically be hit with a penalty fee if you want to switch before your fixed contract period is up.<\/p>

Dual fuel tariffs<\/h4>

This just means you\u2019re getting electricity and gas from the same supplier. Sometimes referred to as \u201cbundling\u201d, dual fuel energy tariffs can be cheaper, as suppliers have even more reason to want you to stay.<\/p>

Time-of-use tariff<\/h4>

Designed to encourage you to use energy at times when supply is cheaper, these charge different unit rates depending on the time of day you use energy. Economy 7 is an example. These plans charge less for energy consumed at off-peak periods, usually a 7-hour period from late at night to the early hours of the morning, hence the \u201c7\u201d in the name.<\/p>

Pre-payment tariffs<\/h4>

These tariffs are for those who have a pre-payment meter and pay in advance for gas and electricity by topping up their meter using prepay tokens, cards or a key. This is typically one of the most expensive ways to power your home.<\/p>

\u201cGreen\u201d energy tariffs<\/h4>

A \u201cgreen\u201d tariff can be 1 of 2 things: Either the supplier will promise to match your usage with generation from renewable sources of energy, or it will contribute towards environmental schemes on your behalf.<\/p>

Feed-in tariffs<\/h4>

This is where you\u2019ve installed solar panels or wind turbines at your property, and the energy suppliers pay you for the energy you produce. There are no longer any new feed-in tariffs available on the market, but existing customers with feed-in tariffs can switch suppliers without losing the payments they receive from selling energy back to the national grid.<\/p>

How to choose the best energy deal<\/h3>
  1. Shop around every year.<\/strong> Many households have no idea how much they can save by switching<\/a> energy provider. Keeping an eye on the latest tariffs can help you save potentially hundreds a year.<\/li>
  2. Make a note of when your current tariff ends. <\/strong>If you\u2019re on a fixed tariff, it\u2019s a great idea to check what deals are available with other suppliers via comparison sites shortly before your current fix ends. This way you can switch over quickly and start saving sooner.<\/li>
  3. Get your details right.<\/strong> When using comparison sites, it\u2019s helpful to get your household details as accurate as possible. Some sites have helpful options to estimate how much energy you\u2019re likely to use based on the type of building you live in and how many people are in your household. But calculating your actual energy use based on past meter readings can give you a more accurate forecast of how much a particular tariff will cost you.<\/li>
  4. Find the right tariff for your usage.<\/strong> If you\u2019re usually out of the house at work during the day, it might make sense to shop for time-of-use tariffs that mean you pay less for energy use at night. Electric vehicle owners who want to charge their vehicles from home can also benefit from these types of tariffs, particularly if they can plug their cars in overnight.<\/li>
  5. Could you save money with a dual fuel tariff?<\/strong> If your household uses gas and electricity, you may find it cheaper to go with one supplier for both fuel sources. This is because suppliers can offer deals designed to stop you from wanting to switch.<\/li><\/ol>

    How much could you save?<\/h3>

    To illustrate how much it\u2019s possible to save by shopping around for your energy supplier, here is an example of 2 dual fuel tariffs (paid by direct debit) with prices fixed for 12 months for a 3-bedroom home in the Birmingham suburb of Edgbaston.<\/p>

    These projections are based on dual fuel tariffs paid by direct debit and fixed for 12 months. Usage figures are based on typical annual domestic consumption values published by industry regulator Ofgem. These are 11,500kWh for gas and 2,700kWh for electricity. <\/p>

    You can check whether you can make savings by using the free, quick tool on our partner Uswitch's site.<\/a>

    Most costly 1-year fixed dual fuel tariff we found in April 2024<\/h4>