Find Energy Tariffs That Suit Your Budget Today

Why Energy Tariffs Matter in 2025

In today’s energy market, you need to know how energy tariffs work. This helps you manage your energy bills. It does not matter if you use a smart meter or a prepayment meter. Even if you have just moved into a new home, choosing between a fixed tariff and a variable tariff can make a big difference in your energy costs for the year. The type of tariff you pick will affect what you pay in the end.

With the energy price cap changing a lot, and people now looking more at renewable energy and renewable sources, UK households want to find the right tariff for their needs. People want a plan that fits with their budget, lifestyle, and how much energy they use. Doing an energy comparison is the first thing people should do to get a better energy deal. When you look closely at your usage, and compare all tariffs, you can find the plan that works best for you.

What Is a Fixed Tariff?

A fixed tariff means you pay the same price for each unit of energy. The unit is known as kWh. This cost will not change while you have the contract. Most fixed tariff contracts can last for 12, 18, or 24 months. A fixed tariff can help you plan because you know what to expect for your energy bills.

Pros:

• You get help if prices rise.
• It is easy to see how much you will pay for your energy bills each month.
• You can lock in your rate before a planned price cap goes up. For example, this can take place in July or September.

Cons:

• You will likely have to pay exit fees if you leave before the end.
• You might not get savings if the prices in the market go down.

What Is a Variable Tariff?

A variable energy tariff is a plan where what you pay can go up or down. Your energy bill might change because of things happening in the market. There is also an energy price cap for these tariffs. Ofgem, the regulator, sets and controls the price cap. This helps keep what you pay from getting too high. A variable tariff can change with both market prices and the price cap.

Pros:

• There are often no exit fees when you leave.
• You can get help if the main prices go down.
• It is easy to change and very flexible.

Cons:

• The plan will not save you from paying more money.
• You might find it hard to know your bill every month, especially in the winter.

Comparing Fixed and Variable Tariffs Side-by-Side

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How to Choose the Right Tariff for Your Budget

Step 1: Know Your Energy Usage

You can use your latest meter reading, past energy bills, or smart meter data to see how much energy you use in a year. If you do not know how much electricity you use, many comparison tools can help. They show what people in your postcode and with the same property size use on average. Giving regular meter readings helps make sure you get charged the right amount for your usage.

Step 2: Identify Your Priorities

Ask yourself:

• Do you like to get bills that are the same each month?
• Are you okay when prices go up or down?
• Do you think you will move or pick another supplier soon?
• Will a fixed deal make you feel better and more at ease?

Step 3: Compare Tariffs Using a Reputable Tool

Use an Ofgem-accredited energy price comparison site. These websites help you:

• To see offers in your area, enter your postcode and say how much electricity you use.
• You can look at different electricity deals or check the dual fuel options too.
• Sort the tariffs to see by price, if you can get flexibility, or if there are any exit fees.
• The site also shows plans from new energy companies, those with green renewable sources, and other suppliers.

Check if the suppliers follow the Energy Switch Guarantee. This helps make sure the switch goes well for you. Also, look at their payment plans to see what they offer. Find out if they will give help like the Warm Home Discount or the Winter Fuel Payment.

When Is a Fixed Tariff Better?

• If you do not have a lot of money to spend, this could be good for you.
• If you feel worried about the price cap going up in the future, this is something to think about.
• If you want to get the same bill every time and know the unit rate, this may be what you like.

When Is a Variable Tariff Better?

• If you do not mind watching the changes in energy prices
• If you want to have more freedom to change or switch
• If you want to wait for the market to go down or get better energy deals

How Prepayment Customers Can Compare Tariffs

People who have a prepayment meter may not have a lot of options. But, they can still get some good things from this.

• Use smart top-ups and digital apps. These can help you see and control what you spend. A lot of people say they are good to use, and you can get to them any time from your phone or computer.
• Switch to a credit meter if you are able to get one. A credit meter can be better for some people. It may let you save money in the long run, depending on how you use gas or electricity.
• Check for prepayment tariffs that are under the price cap. The price cap is there so you do not pay more than you have to. See if there is a prepayment tariff that works for you.

Even people in Northern Ireland can use comparison tools. These tools are there to help you find suppliers who work in this region.

What About EV Owners?

If you have an electric vehicle, there are some fixed tariffs that give you lower prices at night. These are good if your home has high usage of electricity when it is dark. Some suppliers also change their prices by season. For example, they may update what they charge in June, July, or April.

Correct as of 09 June 2025

FAQs About Comparing Energy Tariffs