How do I choose an energy tariff?

A practical comparison checklist

1. Find a full 12 months of electricity and gas use in kWh on a bill or supplier app. Actual annual usage is more useful than your monthly Direct Debit or a typical-household headline.

2. Record each fuel's unit rate and daily standing charge, including regional pricing and VAT treatment if shown separately. Estimate annual cost as annual kWh × unit rate, plus 365 × daily standing charge; compare like with like.

3. Check how the tariff matches your meter and payment method: single-rate, Economy 7 or another time-of-use meter; Direct Debit, standard credit or prepayment. For time-of-use pricing, use the actual split of your day and night consumption if available.

4. If considering a fixed tariff, note the end date, what is fixed, what can still change, and any exit fees. Compare the likely cost across the relevant contract period, not just a headline monthly payment.

5. Check eligibility and practical terms, including smart meter requirements, online account requirements, export arrangements if you generate electricity, customer service and how bills are issued. Do not assume a smart meter by itself lowers the price.

6. Consider how much price certainty matters to you, your ability to manage a variable bill, and how you would pay. The lowest estimated annual cost is not automatically the best fit for every household.

7. Before switching, confirm that the offer is available to your address and meter, read the terms and keep a copy of the quote. If you have a complaint or debt, ask the current supplier and new supplier how it affects the move; do not rely on a sales claim.

GB and Northern Ireland

Ofgem's price cap and switching rules discussed here apply in Great Britain, not universally across the UK. Northern Ireland has separate arrangements and market processes. Check your local regulator and supplier guidance before using GB comparisons. This is general information, not a personal recommendation.

Good to know

Should I compare monthly Direct Debits?

No, not on their own. Direct Debits can reflect a supplier's forecast and account balance. Compare annual kWh against tariff rates and standing charges.

Is the cheapest unit rate always the cheapest tariff?

No. Include standing charges, your usage, payment method, meter and any fees or conditions.

Is a fixed tariff always cheaper than the price cap?

No. Compare its full rates and terms with the applicable variable tariff, and consider the fixed end date and exit fees.

Can I switch if I have a smart meter?

Usually a smart meter does not prevent switching, but check compatibility and any tariff-specific requirements with the prospective supplier.

Sources

• Ofgem: getting the best energy deal
• Ofgem: switching energy supplier
• Citizens Advice: energy supply
• Utility Regulator Northern Ireland