Your Guide to Finding the Best Energy Deal
Find out all you need to know about your energy, including where to find the best
Your Guide to Finding the Best Energy Deal
Find out all you need to know about your energy, including where to find the best deal for you.
Everyone relies on energy. It’s a common cost among everyone in the UK, regardless of your living situation. Where (and who) you get it from depends on your situation but, while there’s a chance you get your warmth from burning wood and your electricity from a hamster in a ball, you’re much more likely to get your energy from an external provider.
There’s a lot to learn about energy, though. Who are the main players? Who is the best energy provider? What are the best kinds of tariffs? How can you reduce your carbon emissions? This page answers all of these questions, and, as well as that, it will show you exactly how to search for the best energy deal for you. We don’t, unfortunately, provide hamster wheels (sorry).
Why It's Best to Compare Energy Deals
Just like in all the other aspects of your life, whether it’s your broadband deal, car insurance, or mortgage, you want to ensure you get the best deal possible. With this in mind, and given that your energy bill is one of your biggest monthly costs, finding an energy deal that suits you better than your current one is important. The best way to do this? Compare.
Comparing energy deals and tariffs means you could unlock numerous benefits, benefits that include:
Cost Savings
The most obvious reason for switching your energy supplier is cost reduction. Switching providers could reduce your bills, meaning you have more money in your pocket come the end of the month. Such savings, even if they seem small on paper, can make a real difference when it comes to your home finances.
Better Customer Service
Switching could do more than cut your bills, it could also mean you’re able to access a better level of customer service which, for many people, is worth switching providers in itself. If your current supplier isn’t helpful when things go wrong, switching could make your life easier. Comparing different suppliers, therefore, could help you get the best customer service possible.
More Favourable Terms
Finally, there are contract terms. Different energy suppliers offer different contracts, some of which cost more, and some of which cost less. In short, your type of contract could be the difference between saving money and overpaying. Some aspects of your contract you might want to change include:
- Contract length (longer for security or shorter for flexibility)
- Cheaper rates (per kWh, standing charge, other charges)
- Better guarantees for resolving downtime
- Usage bandwidth
- Adjusted exit fees
How do you pay your energy bills?
Please select the how you currently pay for energy
- It only takes a minute.
Types of Energy Contracts
Before you can start saving money, it’s first important to get to grip on how exactly energy contracts work. As you might already be aware, they come in different shapes and sizes. Some are long contracts with fixed terms, while others are short and flexible.
We recommend you take the time to familiarise yourself with these different types and figure out which one works best for you. Keep reading to find out which contract type would best suit you.
Fixed Rate Tariffs
With a fixed rate tariff, the price you pay for each unit of energy is, as the name suggests, fixed. Being on a fixed rate tariff means you pay the same price for the length of your contract, regardless of market fluctuations. This of course means that you will be protected from price rises for the duration of your contract, which can be up to 12 months.
However, you should also be aware that you’ll pay your agreed price even when prices go down, which they often do in the summer months. These kinds of contracts also tend to come with exit fees. Fixed tariffs do, however, make budgeting a lot easier.
Variable Tariffs
Opposite to fixed tariffs, your price per unit will be determined by the market conditions. These prices will typically change every three months (once per quarter), with reviews of the price taking place in January, April, July, and October; in line with Ofgems price cap reviews. Unlike fixed rate tariffs, variable tariffs don’t usually come with exit fees, so you can leave anytime without penalty.
As well as this, you’ll benefit from a drop in energy prices, as they’ll be passed on to you. If the price increases, however, your energy bill will reflect this as well, which is something to keep in mind.
What Affects Your Energy Costs?
Energy costs are influenced by several factors; the main being market conditions and individual usage. Below, though, are more of the factors that can affect the price you pay for your energy:
Seasonal Changes
It goes without saying, but we’ll say it anyway, your energy consumption is likely to go up during the colder months. You’ll need to keep your house warm and, if you spend a lot of time indoors (which we all do when the weather is bad), it’ll only mean more consumption.
Energy Efficiency
You’ve heard how some houses are more energy efficient than others, but what does this mean? Well, energy efficiency is a measure of how well a house keeps hold of the heat inside it.
Things like cavity walls, double glazing, loft insulation, and insulating plaster are all things that make a house more energy efficient. If your house lacks these things, it won’t be as energy efficient as it could be, and you’ll end up burning more gas to keep it warm.
Location
It’s not something you tend to consider when you’re buying a house, but your energy bills are indeed influenced by where your house is. In 2024, for example, electricity unit costs varied from 41p/kWh in London to 30.7p/kWh in South Wales and 37p/kWh in Yorkshire.
Market Fluctuations
As you already know from reading about the different types of tariffs above, there’s no need to worry about market fluctuations if you’re on a fixed tariff. But if you’re on a variable tariff, market conditions will impact the price you pay for your energy, sometimes dramatically.
Understanding Your Energy Costs
When you sign up for a supplier, there will be a lot of terms and acronyms you may never have heard of before. That’s why we’ve made this handy breakdown of what it all means, just in case you were finding any of it confusing.
It’s important to know what it all means. This way, if you switch providers, you’ll know all there is to know about how to choose the right provider.
- Standing charges: A fixed daily fee covering the cost of maintaining your energy supply, including infrastructure and administrative services.
- Unit rates: The cost per kilowatt-hour (kWh) of energy you consume.
- Pass-through costs: Charges that suppliers pass on to customers to cover expenses like network distribution, environmental levies, and government obligations.
- Maintenance costs: Fees associated with the installation, maintenance, and reading of energy meters.
- Late payment fees: Additional charges incurred when energy bills are not paid by the due date.
How Can I Switch Energy Provider?
Hopefully, that’s cleared up some questions that you may have about how your energy contract works and why switching energy providers can help you and your family live a more affordable life. The last question you most likely have is, “How can I switch my energy supplier?”
Thankfully, that bit couldn’t be easier. All you have to do is answer the question below to start our quick form. From there, you’ll be able to compare prices from different providers and choose the one that best suits you. Best of all, you’ll be able to use the above information to inform your decision.
It’s also a completely free service, and there’s no obligation to commit to anything if you don’t want to. What are you waiting for? See how much you could save today…
FAQs
How is my energy bill worked out?
Knowing exactly what you pay for is important for understanding your bill. This way, if you switch providers, you’ll know how to choose the right provider. The chargers on your bill include more than just the energy you use, with the below also being included.
- Standing charges
- Pass-through cost
- Maintenance costs
- Late payment fees
- VAT
How much can I save by switching my energy provider?
Because of all the different factors that come into play when determining the price of energy, it’s hard to give an exact answer. However, finding out isn’t far away…you can compare energy quotes from various providers directly through Consumer Experts. Just click the button to the left to get started.
