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Energy prices keep changing. But you may be able to save money if you switch to a better deal.

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Home Energy Prices and Tariffs

When you look at other energy prices, you get to see what you pay for each unit of energy. Your electricity tariff and gas tariff have two main parts. There is a unit rate, which is the price you pay for each kWh. There is also a daily standing charge you have to pay.

The Ofgem domestic energy price cap bill puts a limit on charges for standard variable tariffs. But there are competitive deals out there. You can look for a fixed term contract or special deals online to get prices that are lower than the energy price cap.

Every home uses energy in its own way. The cost of your energy will be different for you, as it depends on your meter readings, payment method, and where you live. That is why using an energy comparison engine like Free Price Compare is a good idea. It helps you find the right deal for your needs by looking at your energy usage, not just the lowest cost on paper.

How Energy Costs Are Calculated

Your energy bill has more than just the price you pay for electricity or gas. Here is a breakdown of the costs.

  • Wholesale costs – This is the amount your supplier pays to get gas and electricity from the market.
  • Network costs – These costs go to the National Grid and the local companies that take care of the wires and pipes that get the energy to you.
  • Environmental impact levies – The money helps pay for renewable energy projects and works to cut carbon emissions. This is about the impact on the planet.
  • Operating costs – These are what your supplier spends to do things like send bills, run apps, and help with customer service.
  • VAT – A 5% tax that is put on every home energy bill.

Knowing how these things change your energy rate comparison is important. It helps you pick tariffs that keep prices steady. It can help you get green energy. Good customer service is also something you may want.

How Energy Costs Are Calculated

Fixed vs Variable Energy Deals

When you pick your next tariff, you will likely see both fixed rate and variable rate plans.

Tariff Type Description Pros Cons
Fixed Rate Tariff Locks your energy rates for 12–24 months. Protects from price rises and gives budgeting certainty. May have early cancellation fees if you switch before the end of your fixed term.
Variable Rate Tariff Prices change with the current energy price cap and market trends. No exit fees and flexibility to move anytime. Rates may increase during periods of higher wholesale prices.
Prepayment Meter Tariff Top up in advance using an app or key. Helps you control spending and avoid unexpected bills. Tariffs are often slightly higher than direct debit deals.
Smart Energy Tariff Adjusts prices by time of use for EV or solar homes. Cheaper off-peak electricity for savvy users. Needs a smart meter and flexible usage.

If you do not know which plan is good for you, our tool shows electricity deals and gas tariffs together. This way, you can see the options side by side and pick what works best for you.

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Is It a Good Time to Switch Energy Supplier?

Yes, this is true, especially if you are on a standard variable tariff or a default energy contract. These plans are some of the most expensive tariffs you can get.

The Energy Switch Guarantee makes it easy and safe to switch to a new energy supplier. The whole process is watched over to be sure everything is done right. Your energy will keep coming without any stop. Your new provider will take care of the switch for you automatically.

Switching suppliers at the end of winter is often a good idea. During this time, energy usage goes down but fixed offers are still there. A lot of people get a better deal when they compare prices now, instead of waiting for a price cap to go up.

What Is the Ofgem Energy Price Cap

What Is the Ofgem Energy Price Cap?

The current energy price cap, set by Ofgem, is there to make sure suppliers do not charge too much for each unit of energy. This price cap impacts the energy price guarantee and affects variable tariffs. As of October 2025, if you have a dual fuel household using 2,700 kWh of electricity and 11,500 kWh of gas, you will pay around £1,755 per year. The energy price cap helps people keep their bills in check.

The price cap does not set a limit on your whole bill. It just controls the unit price and standing charge. So, if you use more electricity or gas in the home, you will end up paying more.

This is why it is good to use a direct debit and always give up-to-date meter readings. These things help to make sure your bill is right and you do not pay too much.

How to Switch Your Home Energy Supplier

Switching your energy provider can be done fast on the internet. It only takes a few minutes to do.

  1. Enter your postcode – Check which tariffs are for your place.
  2. Choose your energy deal – Look at prices for gas and electricity to find the best one.
  3. Confirm your details – The new supplier will take care of the switch for you.
  4. Provide a meter reading – This step will help make your last bill right.
  5. Sit back – Your switch will be finished in about five working days.

There are no further costs when you switch your energy supplier. With the energy switch guarantee offer, your lights and heating will stay on during the whole process.

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Understanding Payment Methods

Energy suppliers offer several payment methods:

  • Monthly Direct Debit – This is the way that most people pay. It is also often the cheapest.
  • Quarterly Billing – You pay every three months. Bills be made from how much you use or what is guessed you used.
  • Prepayment Meter – You pay for your energy before you use it. You can pay by app or a special key.
  • Smart Pay-As-You-Go – You can put money into your account using your phone or online. It helps you manage your bills and top-ups easily.

Customers who pay by direct debit can get discounts. It also makes it easy for them to plan their budget. People who use prepayment have real-time control of how much they use.

Renewable Energy and Environmental Impact

Many UK suppliers now use renewable sources. These come from wind, solar, and hydro power. If you choose a green energy deal, you can help lower your environmental impact. It can also cut down on carbon emissions.

Some tariffs give you green gas made from food waste or farm waste. The gas is created using a process called anaerobic digestion. Other tariffs use Renewable Energy Guarantee of Origin (REGO) certificates to show that your electricity comes from renewable energy sources. This proves the electricity is made in ways that are good for the Earth.

By looking at different renewable energy companies, you can get both clean power and a good price. This helps you support the planet and save money at the same time.

Renewable Energy and Environmental Impact

Average Home Energy Usage and Costs

The average UK home uses about 2,700 kWh of electricity every year. A UK home also uses about 11,500 kWh of gas in a year. This adds up to about £1,755 under the domestic energy price cap bill for 2025. The price cap helps people know what they may pay for their energy.

Your actual costs depend on:

  • The size of your property matters.
  • The number of people who live in your home.
  • The type of energy meter you have, such as smart, traditional, or prepayment.
  • The way you pay and the supplier you use for your energy meter payment method.

By looking at the applicable tariffs in your area, you can find out which supplier gives you the best deal for your use. This works better than just using national averages. It helps you get what is right for your needs.

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Why Compare Energy Prices Regularly

The energy market can change fast. Suppliers often adjust tariffs when there is a price cap review. Price rises may come without warning.

Regular comparison ensures you:

  • Do not let your energy plan go onto a default contract.
  • Make use of introductory offers given by new energy suppliers.
  • Check if your supplier has started a cheaper variable tariff.
  • Stay up to date with market conditions and wholesale changes.

Even if you changed providers not long ago, it is good to check again once or twice a year. This helps you make sure your bills stay good. You can also get the best price this way.

How to Get an Accurate Energy Quote

How to Get an Accurate Energy Quote

When you compare energy deals, it will help to enter your yearly energy use in kWh. This way, you get a more accurate quote than if you only put in your bill amount.

If you do not know how much you use, we can guess using what is common for most homes. But, the best way is to use real meter readings. This gives you the most exact answer.

Your quote will have all the right tariffs, standing charges, and any discounts if you use dual fuel or pay with direct debit.

What Happens After You Switch

Once you’ve confirmed your switch:

  • The new supplier talks to your old one.
  • They send your final bill using the most recent meter reading.
  • If there is any money left, your old provider gives it back to you.
  • You start your new tariff with no break or pause in service.

The energy switch guarantee means you will not be charged more than you have to, and your switch will finish in 5 working days.

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FAQs About Comparing Home Energy Prices

UK energy prices are set by Ofgem every three months. At this time, the current energy price cap changes. The price cap controls what suppliers can charge for each unit of energy on standard variable tariffs. But, suppliers can bring out new fixed rate tariffs or special online-only energy deals whenever they want.

What you pay for energy may change because of the wholesale market, global events, or the time of year. This is common at the end of winter and after other shifts in demand. It helps to use an energy comparison engine like Free Price Compare every so often. This way, you know you are getting a great deal on your energy prices. If you have changed suppliers not long ago, doing one more check may help you find competitive deals. You could get a plan that works better for your payment style or the way you use energy.

No, your energy supply will still work the same during the switch. The National Grid takes care of moving gas and electricity, so there is no need to worry about power cuts or having your supply interrupted.

When you switch to a new energy supplier, it will only change who sends the bill and how much you pay. You will get a final bill from your old supplier. After that, your new energy supplier will look after everything you need. With the Energy Switch Guarantee, you will not be charged by both suppliers at once, and most times it takes less than five working days.

You do not have to call or email your old supplier. Your new provider looks after all of the steps and paperwork. This process is smooth for you and safe to use. Ofgem rules give you peace of mind through each step.

Yes, you can. A lot of people in the UK still use a prepayment meter at home. This is called PAYG, or Pay-As-You-Go. You pay for your energy in advance, and top up your credit when you need it. Switching to a new supplier or tariff is easy now. Most suppliers give you smart prepayment options. You can top up through an app or your online account.

If you want, you might be able to switch to monthly direct debit or a fixed rate tariff when you get a new supplier. This depends mostly on your meter type and your credit history. When you do this, it can make the cost of your energy feel even across the year instead of paying in big amounts all at once.

Some companies also offer energy switch guarantee deals for those who use a prepayment meter. This means your switch will be smooth. You will not lose any credit, and there will not be any disruption to your supply.

Yes, paying by monthly direct debit is a good way to keep your energy bill steady. It can help you avoid surprise charges, too. Most people who pay this way by direct debit get lower prices. This is because energy providers can know what you will pay and plan costs better.
It lets you spread out payments across the year, so you are not stuck with a big energy bill after cold months. If you use our energy comparison tool, you can check by payment method. This will tell you if a direct debit tariff costs less than a prepayment or a quarterly bill.
You should keep your meter readings up to date. Real usage helps your energy provider figure out your bill right. This stops you from paying too much or too little while you are on a fixed term contract.

A fixed rate tariff means the price you pay for each kWh and your daily standing charge will stay the same. This does not change for the whole contract term, which is usually 12 to 24 months. The main thing to know is that this price certainty protects you from price rises. These rises often come from changes in the energy market or from rising wholesale gas costs.

Fixed deals work well for people who want to plan their energy costs over some time. You do not have to worry about ups and downs. But you should know that there may be early cancellation fees. These happen if you switch to another supplier before your fixed period ends.

These fees are about £50–£95 for each fuel, and it depends on the supplier. Still, many people feel that the price stability and easier budget control with fixed tariffs are worth it, especially when the market is very up and down.

If you have a fixed term contract, and you want to leave before it ends, your supplier can ask for early cancellation fees. The fee is there to pay for the cost of stopping your plan early.
But, you can leave without any fee if you are on a variable tariff, or if your supplier lets you know about a price increase that lets you leave. Make sure you read all the full terms and conditions of your contract before you switch, so you do not get any unwanted surprises.
When you use our comparison tool, it shows clearly if a tariff has exit fees and how much those fees are. This helps you know if you should switch now or wait until your fixed term contract ends.

The Energy Switch Guarantee helps you change your energy supplier in a way that is easy and safe. The big energy providers in the UK take part in this. This process is watched by Ofgem to make sure it works well.
The energy switch guarantee promises:

  • There will be no loss of gas or electricity supply when you switch.
  • Your new supplier will take care of the whole process.
  • Your old supplier will send your final bill in about six weeks.
  • If you have any credit left with your old supplier, they will give it back to you quickly.
  • You won’t get charged twice. You pay only for the energy you use.

This guarantee gives you peace of mind to change your supplier anytime you see a better deal. It works with most domestic energy contracts, like dual fuel, direct debit, and prepayment tariffs.

When you look at renewable energy tariffs, try to find suppliers that make electricity from clean energy sources like wind, solar, water power, or tides. These deals often come with Renewable Energy Guarantee of Origin (REGO) certificates so you know where the power comes from.
Picking a green tariff helps lower your household’s environmental impact and supports the UK as it moves to net zero carbon emissions. A few suppliers also offer carbon-neutral gas. With this, emissions get balanced out using certified carbon-reduction projects.
In our results, you can filter by renewable sources or green energy deals. This way, you get the best mix of price, environmental impact, and reliability. You can make a smart choice that is good for you, your wallet, and the planet.

Yes — energy prices change from one region to another. This is because each local area has its own energy grid and different costs to run it. The energy suppliers look at these costs and set their unit rate and standing charge to match.
So, if two homes are with the same company but live in different places, they may not pay the same, even if their energy usage is much like each other. The kind of energy meter you use can also change what you pay. Your home size and how you pay, like by direct debit or prepayment, also be in the mix when you get your price.
When you type your postcode into our tool, it will use your location to show the right energy prices for you. This way, you get the best results for your area based on your payment method, energy meter, and other details.

The easiest way to do this is by using an independent energy comparison service like Free Price Compare. You just need to enter your postcode and a few facts about your usage. After that, you will see electricity tariffs, gas prices, and dual fuel deals picked for your home.

You can look at the results and sort them by price, contract length, payment method, or renewable energy content. This helps you find what is most important for you.

All the deals shown include standing charges, VAT, and any further costs. This means you can compare properly and know there will not be extra fees to surprise you later.

Once you put in your postcode, our energy comparison engine looks at all the applicable tariffs for your area. The engine checks fixed, variable, green, and prepayment plans.
We compare many UK suppliers. This includes big names like British Gas and E.ON Next, as well as other providers such as So Energy and 100Green. No matter if you use dual fuel or just electricity, the tool finds a match based on your current supplier, your meter type, and your usage.
You will also see what the cost of your energy might be each year. The price cap and limits are shown too. This helps you feel good about your choice.

Tariffs that have no standing charges can be hard to find, but there are some. They are mainly for places where people use very little energy, where it is a second home, or when a property is empty much of the time. With these, you do not pay a set fee every day. You just pay a higher price for each unit of energy you use.

But for most homes, the usual tariff with a fair daily standing charge will be cheaper in the end. It is good to look at the total annual cost of each tariff and not just at the standing charge. This helps you know what is best for your home.

*Average annual cost based on the cheapest tariff available through Free Price Compare compared to the April 2025 price cap: £1,617 vs £1,755, a saving of £231 for typical dual fuel customers. Actual savings will vary depending on household consumption. Based on medium usage as defined by Ofgem’s Typical Domestic Consumption Values (2,700 kWh electricity and 11,500 kWh gas), paying by direct debit, with paperless billing. Prices averaged across all UK regions and correct as of 1 April 2025. Savings exclude any cashback you may be eligible for.

Page last updated on: 16/10/2025

Page reviewed by: Andrea Troy

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