Cheapest energy tariffs for new customers in the UK this month
Find the lowest estimated deals you can actually switch to right now — based on your postcode, meter type and payment method. We explain what “cheapest” means, the common catches, and how to check eligibility before you switch.
- Whole-of-market comparison for households (not business energy)
- Clear caveats: standing charges, regional pricing, meter type and exit fees
- Switch online in minutes — we’ll show you what to check first
Estimates only. Availability and prices vary by region, meter type, usage and payment method. Always check tariff T&Cs and exit fees before switching.
Fast answer: what are the cheapest tariffs for new customers?
In the UK, the cheapest energy tariff for a new customer is usually the deal with the lowest estimated annual cost for your exact details — not necessarily the lowest unit rate shown in an advert. Your price can change significantly by:
- Region (postcode) — standing charges and unit rates vary across electricity distribution and gas networks
- Meter type — single-rate, Economy 7/10, smart prepay, traditional prepayment
- Payment method — Direct Debit vs pay-on-receipt vs prepayment
- Usage — low-use homes can be hit hardest by high standing charges
Key takeaway: “Cheapest this month” means cheapest for you today. The right shortlist changes when wholesale prices move, when suppliers pull deals, and when your circumstances (meter/payment/usage) change.
If you want the lowest overall cost
Compare using your postcode + annual kWh (or last bills). Look for the estimated annual cost and check exit fees.
If you want price certainty
A fixed tariff can be easier to budget for, but it may have exit fees and can be beaten if prices fall.
If you might move home soon
Consider a no-exit-fee option or check if the supplier lets you transfer the tariff to your new address.
Compare deals available to new customers (whole of market)
Use your postcode and contact details to see estimated prices you can switch to. We’ll show tariffs that may be available for new customers, including fixed and variable options, with the key terms that usually affect cost (standing charge, unit rates, exit fees, and payment method).
Before you start: If you have Economy 7/10, prepayment, or you’re in Northern Ireland, make sure you select the correct meter and region — it can completely change the “cheapest” result.
What you’ll need (30 seconds)
- Postcode (for regional pricing)
- Payment preference (Direct Debit / on receipt / prepay)
- Usage (best: annual kWh from your bill; ok: estimate)
Get your personalised quote
Two realistic “cheapest tariff” scenarios (with numbers)
These examples show why the cheapest option can change depending on standing charges, usage and tariff type. Figures are illustrative estimates using typical UK consumption levels and simplified pricing.
Scenario A: Low-use flat (electricity only)
- Assumed usage
- 1,800 kWh/yr
- Tariff 1 (low unit rate, high standing charge)
- £615/yr est.
- Tariff 2 (slightly higher unit rate, lower standing charge)
- £585/yr est.
What this shows: if you use less energy, standing charges can dominate. The “cheapest” option is often the one with the better balance, not the headline unit rate.
Scenario B: Typical home (gas + electricity, Direct Debit)
- Assumed usage
- Elec 2,700 kWh + Gas 11,500 kWh/yr
- Fixed 12-month (with £50 exit fee)
- £1,510/yr est.
- Flexible variable (no exit fee)
- £1,555/yr est.
What this shows: fixed can be cheaper today, but you’re paying for certainty and may face exit fees if you switch again before the term ends.
Important: Your actual quote will use your region, meter and payment method. If you have Economy 7, your day/night split can materially change the result.
Tariff types compared: what’s usually cheapest for new customers?
Suppliers change pricing frequently, so we can’t honestly publish a single “cheapest supplier” that’s true for every postcode. Instead, use this table to identify the deal type that tends to be cheapest for your situation, then confirm with a personalised comparison.
| Tariff type | Often cheapest when… | Common catches | What to check before switching |
|---|---|---|---|
| Fixed (12–24 months) | You want budget certainty and a competitive price today. | Exit fees, and you may miss out if market prices fall. | Exit fee amount, end date, what happens at renewal, and any payment method restrictions. |
| Flexible variable | You prioritise flexibility and may switch again soon. | Rates can change (supplier rules + market movements). Not always cheapest. | How often prices can change, notice periods, and current standing charges. |
| No-exit-fee fixed (short term) | You want some certainty but might move or re-switch. | Can be slightly pricier than “harder” fixed deals. | Any price guarantees, contract length, and whether it’s truly exit-fee-free. |
| Prepayment (smart/traditional) | You need pay-as-you-go control or you’re required to use prepay. | Not all tariffs are available; credit checks and smart meter requirements vary. | Whether you need a smart meter, top-up methods, and any debt repayment settings. |
| Economy 7/10 | You can shift meaningful use to off-peak (storage heaters, EV charging). | Day rates can be higher. Wrong day/night split assumptions skew “cheapest”. | Your real day/night usage split and off-peak hours for your meter. |
Quick decision checklist
- Do I want certainty (fixed) or flexibility (variable)?
- Can I commit for 12+ months without moving?
- Am I low usage (standing charge matters more)?
- Is my meter single-rate, Economy 7/10, or prepay?
- Am I happy to pay by Direct Debit (often best priced)?
Who the “cheapest” new-customer deals usually suit
- Households paying by Direct Debit
- People who can pass a supplier’s eligibility checks (varies by deal)
- Homes with stable occupancy (less risk of paying exit fees)
- Customers with a smart meter (can unlock more tariff types)
Who they may not suit
- If you’re likely to move or want to switch again soon (avoid exit fees)
- If you’re on prepayment and need specific top-up methods
- If your Economy 7 usage is mostly in the daytime
- If you prefer paper billing (some tariffs are online-only)
Costs, exclusions and common pitfalls (so the “cheap” deal stays cheap)
The cheapest tariff on a comparison can become poor value if the assumptions don’t match your home. Here are the most common reasons customers are disappointed — and how to avoid them.
1) Standing charges outweigh unit rates
If you use less energy, a tariff with a slightly higher unit rate but lower standing charge can be cheaper overall.
Tip: compare by estimated annual cost, not just p/kWh.
2) Exit fees and moving home
Many fixed tariffs charge exit fees if you leave early. Some suppliers waive fees when you move, others don’t.
Tip: if you may move, filter for no-exit-fee or check the move-home policy.
3) Economy 7 assumptions are wrong
Economy 7 works best when a good chunk of your usage is off-peak. If most usage is daytime, it can cost more.
Tip: use your real day/night split from bills if available.
4) Payment method restrictions
Some of the best-priced tariffs assume paying by Direct Debit and online account management.
Tip: check whether the price changes for pay on receipt or prepayment.
5) “New customer” eligibility
A tariff marketed for new customers may exclude current customers of the same supplier or require a specific meter type.
Tip: confirm eligibility in the tariff’s key facts / T&Cs before applying.
6) Switching timing and billing
Switches typically complete in days, but your final bill, refunds and direct debit changes can take longer.
Tip: take meter readings on switch day if asked, and keep screenshots/confirmation emails.
Good to know: If you’re in debt to your current supplier, you may still be able to switch, but rules and eligibility differ (especially for prepayment). If in doubt, check guidance from Citizens Advice or speak to your supplier.
FAQs
What does “new customer tariff” mean in the UK?
It usually means a tariff only available if you’re not currently supplied by that supplier. Some deals also require a particular meter type (e.g., smart meter) or payment method (often Direct Debit). Always check the tariff’s eligibility wording.
Why can’t you list “the” cheapest supplier for everyone?
Because UK energy prices vary by region, meter type, payment method and usage. A supplier that’s cheapest in one postcode can be beaten in another, and tariffs can be withdrawn or repriced with little notice.
Do fixed tariffs always have exit fees?
No. Many do, but some fixed deals are marketed as no-exit-fee (or only charge fees in certain circumstances). Check the tariff information label / key facts, and note whether fees apply per fuel (gas and electricity) or per account.
Can tenants switch energy supplier?
Often yes, if you pay the energy bills and your contract allows it. If your landlord includes energy in the rent, or you’re in a managed/block arrangement, you may not be able to choose the supplier. If unsure, check your tenancy agreement or ask your landlord/agent.
Does a smart meter make tariffs cheaper?
A smart meter doesn’t automatically reduce prices, but it can unlock more tariff options (including smart prepay and some time-of-use tariffs) and can make billing more accurate. Availability varies by supplier and meter setup.
How long does switching take in Great Britain?
Many switches complete within a few working days, but timelines can vary (for example, if there’s a meter issue or data mismatch). You should receive confirmations from both suppliers. Keep an eye on your final bill and any Direct Debit changes.
Is it cheaper to have dual fuel (gas + electricity) with one supplier?
Sometimes, but not always. Dual fuel can be simpler to manage, yet the cheapest combination can still be separate suppliers. Comparing both ways (dual fuel vs split) is the best approach for new-customer deals.
Will my supply be interrupted if I switch?
No — switching changes who bills you, not the physical supply. Your gas and electricity should stay on during the process.
Trust, methodology & sources
How we assess “cheapest this month” (our approach)
What we mean by “cheapest”
For this guide, “cheapest” refers to the lowest estimated annual cost for a given set of user inputs (postcode, meter type, payment method and consumption). We prioritise clear comparison factors that materially change bills: unit rates, standing charges, tariff length and exit fees.
Assumptions we commonly use (and why)
- Usage: where a user can’t provide kWh, we may reference typical domestic consumption benchmarks (but your quote should use your real usage where possible).
- VAT: domestic energy is generally charged at 5% VAT; estimates typically include VAT.
- Payment: pricing differs by payment method; Direct Debit often has the widest availability.
Limitations (what can change the result)
- Suppliers can withdraw or reprice tariffs quickly.
- Economy 7 results depend on your day/night split.
- Some deals have eligibility criteria (new customers only, smart meter requirements, online-only billing).
- Direct Debit levels are often set by the supplier and can be adjusted after billing reviews.
We aim to keep this guide accurate and practical. For regulatory definitions and consumer rights, always refer to official sources and the tariff’s own documentation.
Sources (UK)
- Ofgem (UK energy regulator) — rules and guidance on tariffs, switching and consumer protections
- Citizens Advice: energy — independent help on bills, switching, debt and complaints
- GOV.UK — government information including support schemes and consumer guidance (where applicable)
Ready to check the cheapest new-customer tariffs for your postcode?
Get a personalised shortlist with the key details that affect cost — including standing charges, tariff length and exit fees.
Prices are estimates and may change. You’ll always see tariff terms before choosing a supplier.
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