How to Get the Best Deal on Your Energy Bills in the UK
Published 3rd of February 2016·Updated 9 April 2026
Reviewed by: Reviewed for accuracy April 2026
The fastest way to cut your energy bills is to compare tariffs and switch to the best available deal. According to Ofgem, households that switch from a default variable tariff to the cheapest fixed deal can save hundreds of pounds per year. The process takes around 20 minutes and your supply is not interrupted.
Short Summary
The Energy Price Cap, set by Ofgem and reviewed quarterly, limits what suppliers can charge per unit of gas and electricity on variable tariffs. Switching to a competitive fixed-rate deal can beat the cap, but always check the exit fees before committing.
Paying by monthly direct debit and managing your account online are the two easiest ways to reduce your tariff rate. Most suppliers charge more for prepayment meters and paper billing.
Giving regular meter readings stops you being billed on estimates. Overestimates mean you are overpaying; underestimates mean a large catch-up bill arrives later.
If you are a tenant who pays energy bills directly, you are entitled to switch supplier regardless of what your tenancy agreement says, according to Ofgem rules.
Step 1: Find out how much energy you use
Before comparing, you need two pieces of information: your annual consumption in kilowatt-hours (kWh) for both gas and electricity, and the name of your current tariff. Both appear on your annual energy statement or online account.
Knowing your consumption in kWh means a comparison site can calculate an accurate annual cost for each available tariff rather than giving you a generic estimate. If you cannot find your kWh figures, your supplier must provide them on request.
Step 2: Use an Ofgem-accredited comparison site
Use a comparison site accredited by Ofgem's Confidence Code. These sites meet standards for impartiality and accuracy. Accredited sites include:
- Uswitch (uswitch.com)
- MoneySuperMarket (moneysupermarket.com)
- Confused.com
- The Energy Shop (theenergyshop.com)
Enter your postcode, current supplier, tariff name, and annual kWh figures. The site will show you the full range of available tariffs ranked by annual cost. Do not rely on the headline figures; check whether exit fees, standing charges, or introductory rates apply.
Step 3: Choose the right payment method
The way you pay affects your tariff rate. Monthly direct debit is almost always cheaper than quarterly direct debit, prepayment, or cash payment.
| Payment method | Typical cost relative to direct debit |
|---|---|
| Monthly direct debit | Cheapest |
| Quarterly direct debit | Similar, sometimes slightly more |
| Prepayment meter | Around £100-£300 more per year |
| Cash or cheque (on receipt of bill) | Most expensive |
If you are on a prepayment meter and want to switch to credit billing, ask your new supplier whether they will install a smart meter at no cost. Ofgem has rules requiring suppliers to do this in most cases.
Step 4: Consider whether a fixed or variable tariff suits you
A fixed-rate tariff locks in your unit rate and standing charge for a set period, typically 12 to 24 months. This protects you if wholesale prices rise, but you will not benefit if prices fall. A variable tariff tracks the market and is capped by the Ofgem price cap.
Fixed tariffs may include exit fees of £25 to £50 per fuel if you leave early. Check these before signing up; if you are likely to move house within the fixed period, a shorter term or no-exit-fee tariff may be better.
Step 5: Do not overlook smaller suppliers
Large suppliers such as British Gas, E.ON, EDF, Scottish Power, and Octopus Energy dominate the market, but smaller suppliers can offer very competitive rates. The same Ofgem comparison infrastructure applies to all suppliers; a smaller supplier provides the same gas and electricity through the same network.
Check reviews on Trustpilot and the Citizens Advice energy supplier rating before switching to an unfamiliar name, as customer service quality varies.
How else can I reduce my energy bills?
Switching tariff is the quickest win, but reducing consumption keeps your bills low regardless of which tariff you are on.
| Action | Estimated annual saving |
|---|---|
| Setting heating thermostat 1°C lower | Around £80-£115 |
| Switching to LED bulbs throughout | £35-£55 |
| Draught-proofing doors and windows | £45-£65 |
| Turning off standby appliances | £35-£55 |
| Washing clothes at 30°C instead of 40°C | Around £25-£40 |
| Installing a smart thermostat | £75-£150 |
Source: Energy Saving Trust estimates. The Energy Saving Trust website (energysavingtrust.org.uk) has a free home energy check tool that identifies the most cost-effective improvements for your property.
FAQ
How long does it take to switch energy supplier?
The switching process takes around 17 days from the time your new supplier confirms the switch. You do not need to do anything during this period; your new supplier handles everything. Your energy supply is not interrupted at any point.
Will switching energy supplier affect my credit score?
No. Switching supplier does not involve a credit check and does not affect your credit score with any of the three main credit reference agencies (Experian, Equifax, and TransUnion).
Can I switch if I am in arrears with my current supplier?
If you owe more than £500 in gas or electricity arrears, your supplier can block a switch for up to 28 days. After that, you can switch regardless. However, you will still owe the debt to your old supplier; switching does not wipe it.
What is a dual-fuel tariff?
A dual-fuel tariff means you buy both gas and electricity from the same supplier, often with a small discount (typically £20-£50 per year) for bundling. This is not always the cheapest option; separate gas-only and electricity-only tariffs from different suppliers can sometimes work out cheaper when compared side by side. A comparison site will show you both options.
What if I am on a prepayment meter?
You can still switch supplier on a prepayment meter. Ofgem rules require most suppliers to switch you to a smart meter, which removes the need for physical key or card top-ups. If you are on a prepayment meter because of debt, you may need to clear the arrears or make an arrangement with your new supplier first.
What is the Warm Home Discount?
The Warm Home Discount is a government scheme that provides a one-off reduction of £150 on the electricity bills of qualifying low-income households. Eligibility is based on whether you receive the Guarantee Credit element of Pension Credit or meet a low-income threshold. The scheme typically runs from October to March each year. Check eligibility at gov.uk/the-warm-home-discount-scheme.