Are agile energy tariffs cheaper than the UK price cap?
Agile (time-of-use) tariffs can beat the price cap for some homes — but savings depend on when you use electricity, how you heat your home, and how flexible you can be. Compare whole-of-market deals with EnergyPlus to find a tariff that fits your household.
- Understand when agile tariffs can be cheaper than capped standard rates
- See who benefits most: EV owners, smart-meter homes, and flexible users
- Compare fixed, variable, and smart tariffs from across the market
Whole-of-market comparison for UK homes. No obligation. If you switch, your supplier handles the move — no engineer visit in most cases.
Compare agile vs the price cap for your home
In the UK, the energy price cap sets the maximum unit rates and standing charges suppliers can charge customers on default (standard variable) tariffs. Agile tariffs are different: they typically use half-hourly electricity prices that rise and fall with wholesale markets. That means agile can be cheaper than capped rates — but it’s not guaranteed.
The quickest way to see if it’s worth it is to compare your current tariff with whole-of-market options. If you have a smart meter, you may be eligible for more time-of-use deals. If not, you can still compare fixed and variable tariffs that may beat your current costs.
Good to know
- Agile = electricity focused: if your home is on gas for heating and hot water, your biggest savings potential is usually on electricity usage patterns.
- Price cap isn’t a bill cap: your total bill still depends on how much energy you use.
- Standing charges matter: even when unit rates drop, higher standing charges can reduce the benefit for low users.
When agile tariffs are often cheaper than the price cap
- You can shift usage away from peak times (typically early evening) to cheaper periods.
- You charge an EV overnight (or at other off-peak windows).
- You have a home battery or smart controls that automatically schedule appliances.
- You can tolerate some price volatility and monitor costs.
When the price cap (or a fixed tariff) can be better
- Your household uses most electricity during peak times (e.g., 4pm–9pm) and can’t shift it.
- You prefer predictable bills and don’t want half-hourly swings.
- You’re a low user and standing charges dominate your bill.
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Not sure if agile is right?
If you can’t shift usage, a competitive fixed tariff may still beat a capped standard rate. Our whole-of-market comparison includes fixed, variable and smart options.
What is an agile energy tariff?
An agile energy tariff (also called a dynamic or time-of-use tariff) typically prices your electricity in half-hour blocks. Instead of one flat unit rate all day, the price changes based on factors like wholesale costs and demand. When demand is high (often in the early evening), prices can rise. When demand is lower (often overnight or midday), prices can fall — sometimes significantly.
Most agile tariffs require a smart meter capable of recording half-hourly usage. Gas, where included, is usually priced differently (often like a standard unit rate), so agile benefits often come from electricity timing rather than gas usage.
Who is most likely to save on agile vs the price cap?
EV owners
If you charge overnight (or at other low-cost windows), agile pricing can reduce the cost per mile compared with a capped standard tariff. For some households, EV charging is the single biggest driver of savings.
Flexible households
Homes that can run appliances (dishwasher, washing machine, tumble dryer) outside peak hours often do best. Smart plugs and timers make this easier without changing your routine too much.
Battery / solar setups
With a home battery you may charge when rates are low and use stored energy during expensive peaks. Solar can reduce peak exposure, though the best outcome depends on your export terms.
Smart meter households
A working smart meter can unlock more smart tariffs. If yours isn’t communicating properly, a supplier may need to resolve it before half-hourly billing works smoothly.
Daytime-at-home users
If you’re at home in the day (hybrid work, families with young children) you may be able to move usage away from the early evening peak — a common expensive period.
People who track costs
Agile rewards attention. If you’re comfortable checking a rate schedule or app occasionally, it’s easier to avoid expensive half-hours and protect your budget.
How agile pricing works (and what to look at)
To judge whether an agile tariff is cheaper than the price cap, focus on your real usage pattern, not just the cheapest off-peak unit rate you see advertised. Most household bills are driven by: (1) how much electricity you use during expensive periods, (2) your standing charge, and (3) how much usage you can shift.
A practical way to estimate savings
- Check your current tariff type: standard variable (often near the cap), fixed, or smart/time-of-use.
- Look at when you use electricity: early evening peaks are the risk zone; overnight and some daytime periods can be cheaper.
- Identify flexible loads: EV charging, washing/drying, immersion heater, and cooking patterns.
- Compare total cost: include standing charges, not just unit rates.
- Plan for volatility: ask yourself if you can cope if some half-hours cost more than your current unit rate.
Agile vs fixed vs capped variable: what changes?
Tip for comparing properly
If you’re on a capped standard variable tariff, the comparison you want is: your likely total annual cost (including standing charges) on each option. A very cheap overnight rate doesn’t help if most of your usage sits in expensive half-hours.
What the UK energy price cap does (and doesn’t) mean
The Ofgem price cap limits what suppliers can charge per unit of gas and electricity, plus the standing charge, for customers on default tariffs. It’s designed to prevent excessive pricing — not to guarantee you’re on the cheapest deal.
Two common misconceptions:
- It’s not a cap on your total bill. If you use more energy, you’ll pay more.
- It doesn’t apply to most fixed tariffs. Fixed deals can be above or below capped default rates depending on the market.
Why agile can undercut the cap
The cap is based on typical costs for supplying energy to an average household on a default tariff. Agile pricing can dip lower during certain periods if wholesale prices are low and demand is reduced. If you can align usage to those periods, your average paid rate can drop below a flat capped rate.
Why agile can also cost more
When demand is high or the market is stressed, half-hour prices can rise. If your household’s electricity use is concentrated in peak times and you can’t shift it, your effective cost may end up above a capped standard variable tariff.
Risks, pitfalls and common mistakes with agile tariffs
Only focusing on the cheapest half-hours
Your bill is driven by your average price paid across all half-hours you use. If you still cook, wash and heat water during peaks, the cheap windows won’t compensate.
Not accounting for standing charges
Standing charges vary by region and supplier. Low-usage homes can find that small unit-rate savings don’t translate into a lower total bill.
Assuming you’ll always stay flexible
Life changes. School runs, caring responsibilities or working patterns can shift usage back into peak periods, reducing savings over time.
If you want predictable bills
Consider comparing a competitive fixed tariff alongside agile options. Many households choose fixed for certainty, then review again when the term ends.
FAQs: agile tariffs vs the price cap (UK)
Do agile tariffs come under the Ofgem price cap?
The price cap applies to default tariffs (standard variable and similar) rather than dynamic half-hourly pricing structures. With agile tariffs, your price can move up and down with the market, so the key is whether your overall average works out cheaper for your usage pattern.
Do I need a smart meter for an agile tariff?
In most cases, yes. Agile pricing needs half-hourly readings to bill you accurately. If you don’t have a smart meter, you can still compare fixed and standard variable tariffs and consider a smart tariff once a meter is installed and communicating properly.
Are agile tariffs good for electric heating?
It depends on your heating type and how controllable it is. If you can store heat (or have a battery) and avoid peaks, you may benefit. If your heating demand is highest during peak times and you can’t shift it, agile pricing can be risky.
Can agile ever be more expensive than the cap?
Yes. If you use lots of electricity during high-demand periods, or if wholesale prices rise sharply, your cost in expensive half-hours can outweigh the savings you get in cheaper periods.
What’s the safest way to decide?
Compare whole-of-market options and weigh up total cost plus your appetite for price changes. If you want certainty, shortlist strong fixed deals. If you can shift usage, consider agile/time-of-use tariffs and keep an eye on peak exposure.
Trusted comparison for UK homes
“Clear and easy to follow”
“I wasn’t sure if a smart tariff would suit us. The comparison made it easy to see the trade-offs and pick a deal that matched our routine.”
Home energy customer, UK
“Found a better option than our standard rate”
“We were on a variable tariff and didn’t realise how much we could save by switching. The results were straightforward.”
Home energy customer, UK
“Useful for EV charging costs”
“We wanted cheaper overnight electricity for the car. Comparing smart and fixed tariffs helped us make a confident choice.”
Home energy customer, UK
Whole-of-market focus: we help you compare available tariffs for your home, including fixed, variable and smart/time-of-use options where eligible.
Ready to check if agile beats the price cap for you?
Use our whole-of-market comparison to see tariffs that match your postcode and household. If agile isn’t the cheapest for your routine, we’ll help you find a better fixed or variable option.
Switching is usually seamless. Your energy supply stays on throughout.
Quick checklist
- Have your postcode ready
- Know if you have a smart meter
- Think about when you use most electricity
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