How to Compare Energy Prices the Smart Way in 2025

Why It’s Important to Compare Energy Prices in 2025

The Ofgem energy price cap will be £1,755 for each year from 1 October to 31 December 2025. This is set for a usual home that uses dual fuel and pays by direct debit. The price cap is up 2%. That means you will need to pay £35 more than you did in the summer. People use more energy at this time of year. On top of that, costs in the wholesale market have gone up a bit.

Prices might not be going up or down the way they did in 2022 and 2023. A lot of people still pay the energy supplier they use now and don’t switch, so they miss out on savings. Some people also do not know which type of tariff is best for the way they use energy at home. The best way to get significant savings is to compare different tariffs. It is a good idea to do this before winter gets here.

The UK energy market now has over 30 energy companies. They offer different energy tariffs and ways to pay. You can get real help if you want to live with less carbon. UK households can compare energy prices and look at electricity deals, gas tariffs, and dual fuel tariffs. People can choose from the big energy companies or try newer ones like Octopus and OVO. This energy market lets people find energy tariffs and deals that work best for them.

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What to Check Before You Compare Energy Prices

Before you start to compare, take time to look at these main things. This will help you get results that work for your home and also be right.

1. Tariff Type: Fixed vs Variable

Knowing what energy tariff you have can help you find out if you pay too much. Many people still have the standard variable rate. It is a good idea to read about fixed vs variable energy tariffs before you choose your next plan. This can show you about price changes, exit fees, and how much money you could save with each one.

2. Payment Method

The way you pay for energy can change what you spend. Many people who use direct debit pay about £45 less each year than people who use prepayment tariffs. Prepayment tariffs also have higher standing charges. Ofgem is trying to make this difference less over time.

3. Energy Usage and Meter Reading

Getting accurate energy usage data helps people and companies compare things in a fair way. Ofgem uses Typical Domestic Consumption Values (TDCVs) for this reason.

Using your latest meter reading or smart meter data helps you make a much better and more exact comparison.

Smart Ways to Compare Energy Prices in 2025

How Do Price Comparison Websites Work?

Trusted energy comparison websites that are approved by Ofgem’s Confidence Code help you see live tariffs from UK suppliers.

These sites make it easy to compare different options like fixed deals, variable offers, green energy choices, and dual fuel offers. You can look at each deal to find which is best for you, based on your energy usage, where you live, and your payment method.

To use one effectively:

• You need to add your postcode and say if you use a credit meter or prepayment meter.
• Put in how many kWh you use each year. You can find this on your bill or on your smart meter.
• Pick your current supplier and the type of tariff you have.
• Check the list of energy deals. They show the total cost for one year.

You need to make sure the site gives you all tariffs out there. It should not just show those that give it a commission.

Why Use an Energy Bill Calculator Before Comparing?

A good energy bill calculator uses your energy use to work out what you might pay in a year. This way, you can see if a new deal really will give you cheaper energy. It looks at things like standing charges and where you live, so they can make it right for you.

You can use the energy bill calculator to see what you pay now for energy. Do this first before you use the main tool to compare energy prices.

What Role Do Smart Meters Play When Comparing?

A smart meter shows you how much energy you use right now. It helps you know when peak hours are. You can see what you use, so you do not waste energy.

Households that have a smart meter can:

• Find out when they use too much electricity during peak hours.
• Move some use to off-peak times, mainly if they have time of use tariffs.
• Give automatic readings so billing and changing are always right.

Smart meters also help with the smart export guarantee. The smart export guarantee pays people for extra electricity they send back to the grid. This can be from things like solar panels or heat pumps. If you use renewable sources at your home, the smart export guarantee makes sure you get paid for electricity your system makes but you do not use.

How to Spot the Best Deal When Comparing

When you look at prices on a price comparison website, do not only look at the first price you see.
Check:

• If you end a fixed contract early, you may have to pay an exit fee. This is usually around £30 to £50 for each type of fuel.
• It is good to check how well new suppliers do with customer service.
• Check if the provider offers energy tariffs that use renewable energy.
• Look for discounts if you get a dual fuel tariff, which means you get both gas and electricity together.
• See if you can use an online account. This makes it easy to handle everything about your energy tariffs in one place.

A deal could have a higher price, but it might offer better customer service or be better for the environment. Over the long term, this may be the best deal for you. It is not always only about how much you pay. You need to check what comes with the deal. If you get good customer service or your choice helps the planet, it can feel much better as time goes on. In the end, you and others may feel good about choosing the best deal that gives you more over the long term.

Mistakes to Avoid When Comparing Energy Prices

1. Ignoring Tariff Details

Many people focus on the price of energy per kWh, but they often ignore things like the standing charge or the exit fee. It is a good idea to figure out the total cost for a year based on how much energy you use.

2. Forgetting Contract Length and Conditions

A fixed tariff lets you keep the same rate for as long as two years. But if energy prices go down in that time, you could end up paying more than other people.

Make sure you check how long the contract is before you choose a new energy supplier.

3. Comparing Without Accurate Usage Data

If you think you use less energy than you do, your new tariff may look good at first. But you might pay more when your real bill comes.
Make sure to check how much you use by looking at meter readings or your smart meter data.

4. Not Considering Green and Renewable Energy Options

More energy suppliers now offer energy tariffs that use renewable energy and come from renewable sources. The price can be a little higher, but these help the UK reach net zero goals and are good for the environment.

5. Staying Loyal to Your Old Supplier

If you stick with your old supplier, you will likely stay on a standard variable tariff. This means you may not get the best price. There can be significant savings when you switch to a different supplier. You could also use a price comparison website to find a better deal.

What Affects the Cost of Energy in 2025?

How the Energy Price Cap Impacts Bills

The energy price cap helps make sure suppliers do not charge you too much for each unit of gas and electricity when you use their normal plans.
From October to December 2025, the rates will be like this.

Most homes that use an average amount of energy will get a bill of about £1,755 each year. If you use more than that, you will pay more. This often happens in cold weather when people use extra heating.

Regional Differences

Regional price changes happen because of the need to keep up the network and because people want different things in each area.

How the Wholesale Market Shapes Prices

UK energy prices often go up and down because of the wholesale market. This is more true for natural gas.

Key factors to this are:

• Weather and the time of year can really change the market.
• The world is in competition for LNG (liquefied natural gas), and that also affects the market.
• A change in the exchange rate can have an effect on things, too.
• The amount of power we get from wind, solar, and hydro has a big impact.

Costs may get lower if we have a mild winter or if renewable energy is working well. But costs will go up if it gets cold or if there is a lot of trouble in the world.

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What If You Have a Prepayment Meter or Credit Meter?

Many people who use a prepayment meter or prepayment mode often pay more. This happens because you have to pay extra for collection fees and the card.
If you have a prepayment meter, you can still look at other deals. You can compare these options and switch if you find a better one.

If you find it hard to do top-ups or deal with debt, you can talk to your supplier for extra help. Speak with them about the warm home discount as it may help you with bills. You can also ask them about the cold weather payment and winter fuel payment. These things could give you extra help to pay your bills.

Is It a Good Idea to Switch Suppliers Now?

Yes — it is a good idea for most homes to check and change their plans in autumn 2025.

Here’s why:

• The wholesale prices are steady right now, but they could rise a bit when spring comes.
• Fixed deals are cheaper at this time than the price cap set for January 2026 (£1,736).
• You can get stable prices before winter bills go up.

If you pick to change, the Energy Switch Guarantee will make sure the switch is finished in five working days. There will be no stop to your energy supply.

How to Switch to a New Supplier Smoothly

1. Compare energy prices by using your own usage or what you use now.
2. Choose if you want a fixed or a variable tariff.
3. Sign up with the new supplier. They will take care of the switch for you.
4. Tell your old supplier your last meter reading.
5. Set up your online account with your new provider.
6. Keep your direct debit open. Make sure your old supplier gets paid for your last bill.

Your switch happens on its own. The pipes and wires will stay the same. It is just your bill and the price plan that will change.

How Electric Vehicles and Smart Homes Affect Energy Comparison

More people at home now look at storage heaters, electric vehicles, and heat pumps when they choose what tariffs to use. People with electric vehicles often go for time of use plans or off-peak tariffs. They get to pay less when they charge their cars at night.

Smart homes with smart meters can help you save money on bills. They can change how and when you charge things or heat the home, especially when the cost of energy is low. This way, you spend less. You also use power at times when it costs less.

If you have solar panels or home batteries, you can talk to someone about smart export guarantee tariffs. With these tariffs, you get paid for the power you send out from your home.

How to Compare Dual Fuel Tariffs Effectively

A dual fuel deal is when you buy both gas and electricity from the same company. This way, you may have lower bills. Paying these bills can also be easier.

Still, you need to look and see if getting your gas and your electricity from two companies will help you save money.

Always look at both dual fuel tariffs and single-fuel deals. This helps you see which one gives you the best value.

Why Good Customer Service Matters When Switching

The best energy deal is not just about the price you pay. You should also see how they deal with other things.

• You get quick customer service and help when you need it.
• Bills are right, and you can use your online account to check things.
• If you need a hand with something, there is extra help for people.
• It is easy to see what exit fees or charges there are, and you know what to expect when your contract renews.

Big names like British Gas, Octopus, and OVO often have better customer scores. Some other energy companies, too, now have new renewable energy choices. They can give these to people at good prices. So, you can look at these deals if you want something fair.

How to Lock in Savings for the Long Term

• Go with a fixed tariff if you want the price to stay the same.
• Look to see if there are renewable sources in the plan. This can help you get ready in case there is a change with the way people use or set energy rules.
• A smart meter can show you how much energy you use. This helps you cut back and save.
• Make some time every 6 to 12 months to look at your deal again. A fixed tariff can end and you might need a new deal.
• Use your online account to check your energy usage and spot any trends in how you use it.

If you check what you spend and try to use less, you will save more money over time. This can help you get closer to your money goals. When you think about where your money goes, it is easier to find other ways to cut back and save. The more often you do this, the more good it will do for you in the end.

FAQs About Comparing Energy Prices