What Are the Cheapest Electricity Tariffs Available Now?

Finding the cheapest electricity rates can save you a lot of money each year. As of October 2023, the average yearly electricity bill in the UK is £1,138. Electricity prices are changing often, so it's important to compare rates regularly. The energy price cap for electricity is currently £1,834 per year for a typical household. This cap limits how much energy suppliers can charge you.

In the UK, 85% of homes have standard variable tariffs. These may not be the best way to save money. Often, smaller suppliers offer the cheapest tariffs, not the big six. By comparing rates, you could save about £290 each year by choosing a cheaper electricity tariff.

How to Find the Cheapest Electricity Tariff in Your Area

To find the lowest electricity tariff in your area, begin by comparing offers from different suppliers. Look at important factors like how much energy you use, the unit rate (which is about 34p per kWh), and standing charges (about 53p each day). Use our electricity price comparison tool to easily find deals that fit your needs.

• Check if your supplier gives discounts for paying by direct debit or for using your account online.
• You can also find green electricity tariffs if you want to lower your carbon footprint.

Who Should I Choose as My Electricity Supplier?

Choosing the best electricity supplier depends on what you care about the most. Do you want a lower cost, good customer service, or renewable energy? There are about 20 different electricity suppliers in the UK, so it's good to look at your choices. Here are some things to think about:

• Fixed energy deal: This gives you a set price for 12-24 months. It helps you stay safe from rising energy prices.
• Variable tariff: This provides more flexibility. However, your price could go up if market rates rise.
• Exit fee: With fixed tariffs, you usually have an exit fee. This fee often ranges from £30 to £60 per fuel.

Switching to the right supplier can give you peace of mind. It may also help lower your energy bill.

Top 20 Cheapest Electricity Tariffs: What You Need to Know

Switching to a less expensive supplier or plan could lower your electricity bill a lot. You can use our energy comparison tool to check prices. This will help you find the best deal for your energy needs.

Should You Switch to a Fixed or Variable Electricity Tariff?

Choosing between a fixed or variable tariff depends on what your home needs. A fixed tariff keeps your rate the same for 12 to 24 months. This protects you from price increases. A variable tariff can change depending on the market. When energy costs are increasing, fixed tariffs keep your bills steady. If prices go down, variable tariffs can help you save money.

For many homes, fixed tariffs are a safer option, especially when energy prices are uncertain. However, some people might find that a variable tariff is better for them. This is true, especially if electricity prices are thought to drop.

When Is the Best Time to Switch Electricity Suppliers?

The best time to change your electricity provider is before your fixed contract finishes or if you have a standard variable tariff. You can start the switch 49 days before the end of your contract to dodge any exit fees. Usually, the switching process takes 21 days. This is backed by the Energy Switch Guarantee, which makes sure the change between suppliers goes smoothly.

Switching to a new plan when electricity usage is low, like in the summer, can help you get better deals. This way, you can save money before the prices go up in the winter.

How Long Does It Take to Switch Electricity Suppliers?

Switching electricity suppliers usually takes 21 days. This time includes a 14-day cooling-off period. The Energy Switch Guarantee makes sure the process is easy and that your energy supply keeps going without any cut-offs. Your new supplier will take care of everything, including telling your current supplier about the switch. You only need to give a first meter reading to ensure your billing is correct.

How Much Can You Save by Switching Electricity Suppliers?

On average, UK households can save £290 each year by changing their electricity suppliers. This is especially true if you move from a standard variable tariff to a fixed deal. Even if you feel satisfied with your current supplier, it is a good idea to compare electricity prices every year. This way, you can make sure you are getting the best rate.

Many people feel sorry for not changing sooner. A study shows that 42% of folks in the UK believe they could have saved more money if they had switched earlier.

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What’s the Difference Between Dual Fuel and Single Fuel Tariffs?

A dual fuel tariff combines your gas and electricity into one bill. About 70% of UK homes use dual fuel tariffs. This is because it is easier to handle one bill from one provider. You may also get lower charges this way. But some people save more money by choosing different suppliers for gas and electricity. It’s important to compare both options. This will help you find out which one is the cheapest for your home.

Why Is It Important to Compare Electricity Tariffs Regularly?

Energy prices change often, and checking tariffs regularly can help you save money. The energy price cap sets a limit on what suppliers can charge for standard variable tariffs, but it does not mean you will get the lowest prices. By switching to a less expensive fixed tariff or a dual fuel deal, you could save a lot. Comparing electricity tariffs often makes sure you are not paying too much for your energy supply.

How to Avoid Exit Fees When Switching Electricity Suppliers

If you are changing from a fixed tariff, make sure to see if your supplier has an exit fee. You can switch without any penalty if it's within the last 49 days of your contract. Some suppliers provide tariffs that don’t have exit fees. These options are great if you want the freedom to switch whenever you want.

What’s the Energy Price Cap and How Does It Affect Electricity Bills?

The energy price cap is set by Ofgem. It controls how much suppliers can charge each unit of electricity. As of October 2023, this cap is £1,834 per year for a typical household. Keep in mind that the price cap only applies to standard variable tariffs. If you switch to a fixed tariff, you may save more money, especially if prices go up later.

How Do Renewable Electricity Tariffs Work?

Renewable electricity plans are getting more popular because people want to lower their carbon footprint. In 2022, 43.1% of the UK’s electricity came from renewable sources. When you choose a green energy deal, you help to create electricity from wind, solar, and hydropower. This supports a cleaner environment.

Green electricity plans can sometimes cost more. However, many providers now have competitive prices. It's a good idea to compare green plans to find one that works for your budget.

Can You Save More by Paying for Electricity via Direct Debit?

Many suppliers give discounts if you pay by direct debit. By choosing this payment method, you can save up to £80 every year on your electricity bill. Paying by direct debit is also easy. It helps you avoid late payments and makes sure your bills are paid on time.

How Does Smart Meter Data Help You Manage Your Electricity Costs?

A smart meter lets you see how much electricity you use in real-time. It gives you accurate readings, so your bills match what you really use, not just estimates. This way, you can avoid paying too much and understand how much energy you're using. Many suppliers have special deals for people with smart meters, making them a good tool for managing energy costs.

How Does the Energy Switch Guarantee Work?

The Energy Switch Guarantee makes it easy to change your electricity supplier. When you start the switch, your new supplier takes care of everything. They will contact your old supplier and set up the first meter reading. You won’t lose your electricity supply during this time, and the entire process only takes 21 days. With this guarantee, you can feel safe switching suppliers. There are no hidden fees or surprise problems.

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How to Save Money on Your Electricity Bill

Saving money on electricity bills is very important for many families. This is especially true as energy prices keep going up. To lower costs, you should check different energy tariffs often. Changing to a cheaper tariff could help you save several hundred pounds each year. Here are some easy ways to reduce your electricity bill:

• Switch to a better plan: Use an energy comparison tool to find electricity deals that match your energy use.
• Check for the Warm Home Discount: If you meet the requirements, this could lower your bill by £150.
• Get a smart meter: A smart meter helps you track your energy use in real-time and prevents estimated bills.
• Use energy-efficient appliances: Changing old appliances to energy-efficient ones can lower your energy use, measured in kWh of electricity.
• Consider alternatives to prepayment meters: If you have a prepayment meter, think about switching to regular billing, which usually has lower rates.

You can lower your final bill each month. You can do this by switching to a fixed-rate deal or using discounts.

Understanding the Warm Home Discount

The Warm Home Discount scheme provides qualifying homes a £150 discount on their electricity bills. This helps cut costs during winter. The support is for people with low incomes or who get specific benefits. Here’s how the scheme works:

• Eligibility: You can qualify if you get the Guarantee Credit part of Pension Credit or if you are on a low income and meet your energy supplier’s rules.
• When it's applied: The discount usually happens from October to March. This helps with the higher electricity costs during the cold months.
• How to apply: Ask your electricity supplier if they take part in the scheme. Most big suppliers, including those with prepay meter and standard meter options, offer this discount.

The Warm Home Discount is a program that helps families who are struggling with their energy bills. It works alongside other programs like the Winter Fuel Payment and the energy price guarantee.

Moving into a New Home: Setting Up Your Electricity Account

Moving into a new home means you need to set up your electricity account. It's important to find the best deal right from the beginning. Here are some tips to manage your electricity when you move:

• Take your first meter reading: When you move in, write down the meter reading. This helps you avoid extra charges. This reading is important for starting your energy account with the provider.
• Check your current tariff: If you have a standard variable tariff, think about changing to a fixed deal. This can help you get a better rate.
• Explore green energy tariffs: Many providers have green electricity deals. These deals use energy from renewable sources. They can help you decrease your carbon footprint.
• Set up a payment plan: Paying through direct debit can save you money. Suppliers often give discounts for this payment option.

Moving is a good chance to look at different suppliers. You can compare them to find one that has better customer satisfaction and lower prices.

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FAQs About Cheapest Electricity Tariffs

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