Call us on: 0808 808 2282
Getting the best deal for your energy starts with understanding your tariff and checking whether it's the cheapest option available for your energy use. Your energy supplier must tell you about their cheapest tariff that's suitable for you, and you can contact them directly to discuss your options.
At a glance:
Energy tariffs can be confusing, but we're here to help you understand the different options and what to consider before switching supplier or tariff.
We can tell you the difference between fixed-rate and variable-rate tariffs and what to consider before switching suppliers.
Understanding your energy bill can help you make sure you're paying the right amount and identify whether you're on the most suitable tariff for your needs. This video explains how to read your gas and electricity bill.
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.
An energy tariff is the way your supplier charges you for the gas and electricity you use. Understanding the different types of tariff can help you decide whether switching tariff or supplier could save you money.
These are some of the common tariff types available in the UK:
Energy Saving Trust’s guide to how to switch energy supplier and find the best tariff has more information on the different tariffs available.
Read Energy Saving Trust's guide to energy tariffs and how to switch supplier
A fixed-rate tariff lets you pay a set price for each unit of gas or electricity for an agreed period, usually between one and three years. A fixed-rate tariff:
Remember: your unit price is fixed, not your energy bill. This means your energy bills could still go up, depending on how much energy you use.
A variable-rate tariff means the price you pay for each unit of energy can go up or down over time. If energy prices fall, your bills may go down. If prices rise, your bills may increase.
Variable-rate tariffs can save you money when energy prices are low, but they can cost more when prices rise.
Remember: the energy price cap limits what energy suppliers can charge per unit of gas and electricity. Find out more below.
A dual fuel tariff means you get your gas and electricity from the same supplier. This can be more convenient, and some suppliers offer a reduced rate for dual fuel customers.
However, separate suppliers may sometimes work out cheaper, so it's worth comparing deals.
A time-of-use tariff offers cheaper electricity at certain times of the day, usually during off-peak hours. It can be a good option if you charge an electric vehicle overnight or use a heat pump.
To get the most benefit, you'll need to shift some electricity use to cheaper periods. Smart time-of-use tariffs also require a smart meter.
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.
Switching energy tariffs or changing suppliers is one way you can lower your overall energy bills.
If you're thinking of switching, read Ofgem's advice on switching suppliers or energy tariffs.
Energy Saving Trust also has advice on how to switch energy supplier and finding the best tariff.
Read Energy Saving Trust's guide to how to switch energy supplier and find the best tariff
The unit rate is what you pay for each unit of gas or electricity you use. The standing charge is a daily fee that covers the cost of supplying energy to your home.
There's no single cheapest tariff. The best option depends on your energy use, how much price certainty you want, and the deals currently available.
Your energy supplier must tell you about their cheapest tariff suitable for your energy use. You can usually find this information on your bill or by contacting your supplier directly. Find your energy supplier.
They are often most suitable for households that can use more electricity during off-peak periods, such as those with electric vehicles, battery storage or heat pumps. If you have one of these technologies, it's worth exploring time of use tariffs, as they may offer significant savings compared with standard tariffs.
No. The energy price cap limits the amount suppliers can charge per unit of gas and electricity and certain standing charges. Your total bill depends on how much energy you use.
A recent energy bill is helpful; it shows your tariff details, energy use and current charges.
Your new supplier will usually manage the switching process for you. Your gas and electricity supply should not be interrupted, and in most cases no work is needed at your property.
You may still be able to switch, depending on your circumstances and the type of meter you have. For example, different rules can apply if you have a prepayment meter or have unpaid bills. Contact your supplier if you're unsure.
If you switch online, by phone or at your doorstep, you have a 14-day cooling-off period during which you can cancel without penalty.
Not always. Whether you save money depends on your energy use and the tariffs available. Compare tariffs carefully, including unit rates, standing charges and any exit fees that may apply.
You may be able to get financial support to help with energy costs. Support includes:
If you’d like advice on energy tariffs and ways to reduce your energy bills, we can help.
You can contact Home Energy Scotland free by phone, email, or WhatsApp. All our advice is free and impartial.
Find out how to contact us
