Should I switch to an energy tariff with a lower unit rate?

Not always. A lower unit rate (p/kWh) can reduce costs, but your total bill also depends on the daily standing charge, how much energy you use, any fixed-term fees, and whether the tariff suits your usage pattern. Compare the full annual cost (unit rate + standing charge) before switching.

What matters more: unit rate or standing charge?

Both matter. If you use a lot of energy, the unit rate usually has a bigger impact. If you use less energy (for example a small household or a property that’s empty often), a high standing charge can outweigh a lower unit rate. The best approach is to compare estimated annual costs using your typical usage.

How do I compare tariffs properly to find the cheapest option?

Use your real usage (kWh) from recent bills or your smart meter to calculate the annual cost for each tariff: (unit rate × annual kWh) + (standing charge × 365). Also check contract length, price guarantees, and any exit fees.

Could a lower unit rate still increase my bill?

Yes. A tariff can have a lower unit rate but a higher standing charge (or other costs). If the standing charge increase is larger than the savings from the lower unit rate, your total cost can rise—especially if your usage is low.

Are fixed tariffs always better than variable tariffs when rates are high?

Not always. Fixed tariffs can protect you from price rises for the contract period, but they may be higher than current variable rates and can include exit fees. Variable tariffs can fall if the market drops. Choose based on your risk preference, budget certainty, and the total expected cost.

What should I check before switching energy tariffs?

Check the unit rate, standing charge, tariff type (fixed/variable), contract length, exit fees, payment method discounts, and whether prices vary by region. Confirm your current tariff end date and whether switching triggers any charges.

Will switching tariffs affect my smart meter or supply?

Switching tariffs should not interrupt your energy supply. Smart meters usually continue to work, though some features can depend on your supplier and meter type. If you’re unsure, check before switching.

How can I work out if I’m better off on a lower unit rate tariff?

Estimate your annual usage, then compare the full annual cost across tariffs. If your usage is high, a lower unit rate typically helps more; if your usage is low, prioritise a low standing charge. If you want help comparing options, visit https://www.energyplus.co.uk/ to explore tariffs and guidance.

Should I switch to a tariff with a lower unit rate?

A lower unit rate can cut your energy costs — but only if the standing charge, tariff type, and your usage make sense. Compare whole-of-market home energy tariffs with EnergyPlus and see what you could save.

Check whether a cheaper unit rate is offset by a higher standing charge
See if fixed vs variable (and any exit fees) affect your real savings
Find tariffs that match how you use energy (day/night, smart meter, EV, heat pump)

Compare lower unit rate tariffs How to tell if it’s worth it

Whole-of-market comparison for UK homes. No obligation. Quotes depend on your postcode, meter type and current usage.

Compare tariffs by real cost — not just unit rate

It’s tempting to switch the moment you spot a lower pence-per-kWh unit rate. But for most UK households, the cheapest overall tariff depends on:

Standing charge (paid every day, even if you use no energy)
Your annual usage (kWh) for gas and/or electricity
Meter type (credit, prepayment, Economy 7/10, smart meter)
Tariff structure (single-rate, day/night, EV, tracker, fixed)
Fees and terms (exit fees, contract end date, payment method)

Use the form to get whole-of-market quotes tailored to your postcode and household. We’ll help you identify tariffs with a lower unit rate and a competitive standing charge so you can focus on your expected annual cost.

Quick tip: If your usage is low (e.g., small flat, away from home often), a higher standing charge can wipe out savings from a lower unit rate.

Get your comparison

Complete the details below to see suitable home energy tariffs.

When a lower unit rate really can be a good switch

You use a lot of energy

If your home has high kWh usage (larger household, electric heating, heat pump, EV charging), unit rate matters more because most of your bill is usage-based.

Standing charge is similar or lower

A unit rate drop is strongest when the standing charge isn’t higher. Always compare the combined annual cost (standing charge + unit rate x usage).

Your usage pattern matches the tariff

Economy 7 and EV tariffs can have a very low off-peak unit rate. They work best if you can shift usage to cheaper hours (often overnight).

You’re not paying exit fees

If your current fixed deal has an exit fee, it can reduce or eliminate your short-term savings. Check your contract end date and terms.

You’re moving off an expensive default tariff

If you’re on a supplier’s standard variable tariff, a switch to a competitive fixed or tracker can reduce the unit rate and stabilise costs.

You want price certainty

A slightly lower unit rate on a fixed tariff can be valuable if you want predictable monthly payments (even if prices change later).

What does “unit rate” mean on UK energy tariffs?

Your energy bill is typically made up of two parts:

Unit rate (p/kWh)

The price you pay for each kilowatt hour (kWh) of gas or electricity you use. If you use more energy, the unit rate becomes more influential.

Standing charge (p/day)

A daily fee that covers network costs and metering. You pay it every day regardless of usage, so it can dominate costs for low-usage homes.

Important: A tariff with a lower unit rate can still cost more overall if the standing charge is higher or the tariff structure doesn’t match your usage (e.g., an Economy 7 deal when you use most electricity in the day).

A simple way to compare two tariffs

What to compare	Why it matters
Annual usage (kWh)	Use the last 12 months if you can (seasonality matters). A lower unit rate helps more the higher your usage.
Unit rate (p/kWh)	Multiply by your kWh to estimate usage cost. Check day/night rates if applicable.
Standing charge (p/day)	Multiply by 365. If the standing charge is higher, savings from a lower unit rate can disappear.
Fees & terms	Exit fees, contract length, payment method, and discounts all affect net savings.

How to tell if a lower unit rate will reduce your bill

Use this quick, practical method. It works for both gas and electricity and helps you avoid switching to a “cheap unit rate” that’s expensive overall.

Find your annual usage (kWh) on your latest statement or online account. If you only have monthly data, add up the last 12 months.
Calculate estimated annual usage cost: unit rate (p/kWh) × annual kWh ÷ 100.
Calculate estimated standing charge: standing charge (p/day) × 365 ÷ 100.
Add them together to get a rough annual cost for each tariff.
Check contract terms (exit fees, fixed end date). If you’d pay to leave, subtract that from any first-year saving.
Sanity check your usage pattern. If the tariff has day/night rates, estimate how much you use off-peak.

Worked example (simple)

If a new tariff saves you 3p/kWh but adds 10p/day to the standing charge:

Standing charge increase per year: 10p × 365 = £36.50
Usage saving needed to break even: £36.50 ÷ £0.03 ˜ 1,217 kWh

If you use more than ~1,217 kWh per year (for that fuel), you’re more likely to benefit — assuming everything else is similar.

What to gather before you compare

Your postcode (prices vary by region/network)
Your current tariff name (fixed/variable, end date)
Gas and electricity usage (kWh) for 12 months
Whether you have a smart meter or Economy 7
Any exit fees (if you’re in-contract)

Prefer not to calculate? Use the EnergyPlus comparison form and we’ll show suitable options based on expected annual cost, not just headline rates.

Tariff types where unit rate comparisons can be misleading

Not all “lower unit rate” deals work the same way. Here are common UK tariff types and what to watch.

Fixed tariffs

Great for certainty. Check exit fees and the fixed end date. A slightly higher unit rate might still be worth it if it prevents price shocks.

Standard variable tariffs

Flexible (usually no exit fees) but rates can change. If you’re on SVT, it’s often worth checking if a lower unit rate fixed or tracker reduces your annual cost.

Economy 7 / multi-rate

You get a cheap off-peak rate and a higher day rate. If you can’t shift enough usage to off-peak, a “lower unit rate” headline can cost more overall.

EV or time-of-use tariffs

Often very low overnight rates but potentially higher peak rates. Best if you can automate charging and shift flexible appliances (dishwasher, washing machine).

Tracker tariffs

Rates move with the market. A lower unit rate today can rise later. Consider your risk tolerance and whether you’d switch again if prices move.

Prepayment tariffs

Availability and pricing differ by supplier and meter. If you’re on prepay, compare like-for-like and check if switching involves meter changes or appointments.

Common mistakes when switching for a lower unit rate

Only comparing p/kWh

Always include the standing charge. A “cheap unit rate” can be paired with a higher daily cost.

Using estimated usage that’s out of date

If your household changed (working from home, new baby, heat pump, EV), last year’s assumptions may no longer fit. Update your kWh where possible.

Ignoring day/night splits

Economy 7 and time-of-use tariffs are highly dependent on when you use electricity. A lower off-peak unit rate won’t help if most usage is at peak rates.

Overlooking contract terms

Exit fees and automatic rollovers can change the value of switching. Check whether your fix ends soon and whether the new deal has fees.

Bottom line: The right question isn’t “Is the unit rate lower?” — it’s “Will my annual cost be lower for my postcode, meter and usage?”

FAQs: switching to a lower unit rate tariff

Is a lower unit rate always cheaper?

No. If the standing charge is higher, or the tariff has day/night rates that don’t match your usage, the overall annual cost can be higher even with a lower p/kWh.

What matters more: standing charge or unit rate?

It depends on your usage. For low-usage homes, standing charges can form a large share of the bill. For high-usage homes, unit rates typically matter more.

Do prices vary by region in the UK?

Yes. Electricity standing charges and unit rates can vary by region (distribution network area). That’s why your postcode is needed to show accurate quotes.

Will switching affect my smart meter?

In most cases, you can switch supplier with a smart meter. Some tariffs require smart meter functionality (e.g., time-of-use). If your meter is operating in “dumb” mode, readings may be manual until it reconnects.

Should I switch gas and electricity together?

Not always. Dual fuel can be convenient, but the best value may come from separate suppliers. A whole-of-market comparison helps you see options for each fuel.

How long does it take to switch?

Timescales vary by supplier and meter type. Many switches complete within days to a few weeks. Your energy supply won’t be interrupted during the switch.

Need help choosing? Start with the comparison form and we’ll guide you towards tariffs with lower unit rates that also make sense on standing charge and terms.

Why UK households use EnergyPlus

Whole-of-market comparison

We compare across a wide range of UK home energy tariffs, so you’re not limited to a small panel.

Focused on total cost

We help you look past the headline unit rate and assess standing charges and tariff fit for your usage.

Clear, practical guidance

Plain-English advice for switching decisions, including fixed vs variable considerations and common pitfalls.

“I thought the cheapest unit rate was the best deal — but the standing charge was higher. EnergyPlus helped me compare the actual annual cost.”

— Homeowner, West Midlands

“We moved to a tariff with cheap overnight rates and adjusted our EV charging schedule. The explanation made it easy to check if it would work for us.”

— Family household, South East

Ready to see if a lower unit rate will save you money?

Compare home energy tariffs across the market and focus on what matters: your estimated annual cost. Start with your postcode — it takes a moment.

Start my comparison Recheck unit rate vs standing charge

Tip: have your latest energy bill to hand (usage in kWh gives the most accurate results).

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Updated on 14 Feb 2026