Get the best deal for your energy

We know that energy tariffs can be confusing but don't worry, we can help.

We can tell you the difference between fixed-rate and variable-rate tariffs and what to consider before switching suppliers. 

Your energy supplier must tell you about the cheapest tariff suitable for your energy use - they usually do this by listing the most appropriate tariff for you on your bill. You can also contact them directly to find out about the most cost-effective tariff for you. You'll find your supplier's contact details on a recent bill or by logging into your online account.

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Do you understand your energy bills?

If you need help understanding your gas and electricity bills, this video shows you how to read your bill - so you don’t pay too much or too little. If you're not sure who your energy supplier is or need to ask them questions, read Ofgem's guidance on finding your energy supplier.

Energy tariffs

There are several different types of energy tariffs available. If you're considering switching suppliers, understanding which tariff is best for your energy usage is crucial.

More energy suppliers now offer one or more green tariffs, whose energy comes from renewable sources such as a wind or solar energy.

Typically, energy suppliers offer up to four gas and four electricity tariffs. They often include incentives such as discounts for managing your account online account or 'dual fuel' deals.

Find your energy supplier
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What is a fixed-rate tariff?

Fixed-rate tariffs offer stability and predictability in energy bills. With a fixed-rate tariff, you lock in a set price for your energy over a defined period, typically one to three years.

A fixed-rate tariff:

  • shields you from fluctuations in energy prices during your fixed-rate period
  • provides assurance against bill increases during periods of market volatility
  • helps you with budgeting, as you can more accurately anticipate your energy costs
  • brings you peace of mind regarding energy expenses.

Remember: a fixed-rate tariff fixes the price you pay for each unit of electricity and/or gas. If you use more energy with a fixed-rate tariff, your energy bill will increase. 

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What is a variable-rate tariff?

A variable-rate tariff means the price you pay for your energy can change at any time. Energy companies set variable-rate tariffs.

Let's assume you use the same amount of energy every month. If market energy prices fall, so may your variable-rate tariff, meaning a lower energy bill that month. But if energy prices rise, so will your energy bill. Variable-rate tariffs can be advantageous when wholesale energy prices are low but they can become expensive when market prices rise.

The energy price cap limits what energy suppliers can charge per unit for electricity or gas. Find out more about the energy price cap below.

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What is the energy price cap?

Ofgem introduced the energy price cap on 1 January 2019 to prevent millions of households from being overcharged on expensive variable-rate tariffs.

The energy price cap sets the maximum amount that suppliers can charge for each unit of gas and electricity. It also sets a maximum daily standing charge - this is a fixed daily charge that covers the cost of connecting to the supply. Wholesale energy prices, which energy firms pay, determine the cap.

Remember: the energy price cap sets the maximum amount that suppliers can charge for each unit of gas and electricity but it doesn't limit your total bill. 

Read our article about changes to the energy price cap and what this means for you.

Should I switch to a fixed-rate tariff?

Switching energy tariffs or energy suppliers is a big decision.

If you're thinking of switching, read Ofgem's advice on switching suppliers or energy tariffs and explore Energy Saving Trust's advice on switching your energy supplier for more information.

Read Ofgem's advice on switching energy supplier or tariff Read Energy Saving Trust's advice on how to switch energy supplier

Support with paying your energy bills

You may qualify for certain annual payments aimed at reducing your fuel bills. 

The Winter Fuel Payment is worth £200 to £300 for winter 2024 to 2025. In Scotland this has been renamed Pension Age Winter Heating Payment. You may be eligible if you were born before 23 September 1958 and receive Pension Credit or certain income-related benefits.

The Winter Heating Payment of £58.75 is paid to people in Scotland of all ages receiving qualifying benefits.

The Child Winter Heating Payment of £251.50 is paid to parents and carers of disabled children and young people aged under 19 who receive a qualifying benefit.

The Warm Home Discount is a £150 payment towards your energy costs managed by energy suppliers. 

Find out about financial support
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