Home Energy in the UK – Smarter Ways to Power Your Home
Understand your gas and electricity, find better tariffs, and start saving on your home energy bills with simple, practical help.
Your guide to UK home energy
Energy in the United Kingdom is changing quickly. Price caps, new tariffs, smart meters, and greener electricity can make it hard to know if you are on the right deal. We cut through the jargon so you can understand how home energy works, what you are really paying for, and how to keep more money in your pocket.
Whether you are renting a flat, running a busy family home, or moving into your first property, the right gas and electricity plan can make a big difference. From standing charges and unit rates to fixed and variable tariffs, we explain it all in plain English.
- Learn how home energy billing works in the UK
- See which factors actually affect your monthly costs
- Discover easy, low-cost ways to cut your usage
- Get guidance on switching suppliers or tariffs
See how much you could save
Share a few details about your home energy and we will help you explore better tariff options and simple ways to reduce your bills.
How home energy works in the United Kingdom
In the UK, most households buy gas and electricity from private energy suppliers, but the system itself is regulated. Ofgem, the energy regulator, sets rules on how companies must behave and operates the energy price cap for standard variable tariffs. This cap limits what suppliers can charge per unit of energy and for standing charges, but your actual bill still depends on how much you use.
Your home energy bill is usually made up of two main parts:
- Standing charge – a fixed daily fee you pay just to have a gas or electricity connection, even if you use nothing.
- Unit rate – the price per kilowatt hour (kWh) of gas or electricity you actually use.
On top of this, VAT at 5% is added, and part of what you pay goes towards maintaining networks, government schemes, and the cost of buying energy on the wholesale market.
Common UK home energy tariffs
Understanding tariff types can help you choose the right plan for your home:
- Standard variable tariff (SVT) – Prices can go up or down and are normally linked to the Ofgem cap. You can usually leave without exit fees.
- Fixed-rate tariff – Your unit rates are fixed for a set period (e.g. 12 or 24 months). Your usage can still change your total bill, but the price per kWh is locked.
- Time-of-use tariffs (e.g. Economy 7 or smart tariffs) – Cheaper rates at night or off-peak and higher rates at peak times. Useful if you can shift usage.
- Prepayment tariffs – You top up your gas and electricity in advance via a key, card, or app. Helpful for budgeting but sometimes more expensive per unit.
- Green tariffs – Your supplier matches some or all of your electricity use with energy from renewable sources such as wind and solar.
Dual fuel vs single fuel
Many households in the UK choose a dual fuel tariff, where one supplier provides both gas and electricity. This can mean:
- One bill and one point of contact
- Potential dual fuel discounts
- Simpler management when moving home
However, it is sometimes cheaper to have separate suppliers for gas and electricity, especially if one company offers very competitive electricity-only deals for homes with electric heating or electric vehicles. It is worth comparing both options based on your own usage.
Why taking control of your home energy matters
Lower monthly bills
Choosing the right tariff, trimming wasted usage, and understanding when you use the most energy can all cut your monthly costs without sacrificing comfort.
More stable budgeting
Fixed-rate plans, smart meters and regular meter readings help you avoid unexpected bills, giving you a clearer picture of what you will pay each month.
Greener choices
Switching to renewable electricity, improving insulation and upgrading old appliances all reduce your carbon footprint and support the UK’s net-zero goals.
Smart meters and tracking your energy use
Smart meters are being rolled out across the United Kingdom to replace older gas and electricity meters. They automatically send accurate readings to your supplier and give you an in-home display showing your real-time energy use in pounds and pence.
With a smart meter you can:
- See how much energy you are using right now
- Spot which appliances cost the most to run
- Avoid estimated bills and surprise catch-ups
- Access more advanced time-of-use tariffs in future
Smart meters are usually installed at no extra cost by your energy supplier. If you have not been offered one yet, you can contact your provider to request an installation date that suits you.
Quick home energy checklist
- Are you on a standard variable tariff or a fixed deal?
- Do you submit regular meter readings (or have a smart meter)?
- When did you last compare tariffs or suppliers?
- Is your home well insulated (loft, cavity walls, windows)?
- Do you know your typical monthly or annual usage?
If you answered “no” to any of these, there is a good chance you could reduce your bills or at least gain better control over them.
Talk to us about your home energyPractical ways to save energy at home
You do not have to make big sacrifices to feel a difference on your energy bills. A combination of smart habits and simple upgrades can cut consumption while keeping your home comfortable.
Easy, low-cost changes
- Use your thermostat wisely – Turning your heating down by just 1°C can reduce heating costs significantly over a year.
- Draft-proof doors and windows – Simple draft excluders, seals and letterbox brush strips stop warm air escaping.
- Switch to LED bulbs – LEDs use much less electricity than halogen or incandescent bulbs and last longer.
- Unplug standby devices – TVs, consoles and chargers draw power even when not in use. Use power strips to switch them off easily.
- Wash at lower temperatures – 30°C washes are usually enough and can significantly cut electricity use for laundry.
Longer-term improvements
- Loft and wall insulation – A well-insulated property needs less heating to stay warm, which reduces gas or electricity use.
- Upgrade your boiler – A modern condensing boiler or an efficient heat pump can lower your energy consumption over time.
- Efficient appliances – When replacing fridges, freezers or washing machines, look for high energy-efficiency ratings.
- Smart heating controls – Smart thermostats and radiator valves let you heat only the rooms you use when you use them.
- Solar panels – If suitable for your property, solar PV can generate your own electricity and reduce what you buy from the grid.
Switching home energy suppliers in the UK
Switching energy supplier or tariff is usually straightforward and can be one of the quickest ways to reduce your bills. You stay connected throughout the process and your gas and electricity come through the same pipes and cables; only the company that bills you changes.
To compare and switch effectively you will need:
- Your current supplier name and tariff type
- Your typical annual usage in kWh (found on recent bills)
- Your postcode and meter type (single-rate, Economy 7, smart meter)
Once you have chosen a new deal, the switching process typically takes around 5 working days, although this can vary. You are protected by the Energy Switch Guarantee with many suppliers, which aims to make the process smooth and reliable.
If you are in debt on a prepayment meter, renting, or unsure which tariff to choose, we can help you understand your options before you commit.
Thinking about switching?
Let us walk you through the process, explain your options, and help you avoid common mistakes such as exit fees or unsuitable tariffs.
Help me review my tariffNo pressure to switch. We focus on what is right for your household and budget.
Support for UK households struggling with energy costs
High gas and electricity prices have put many UK households under pressure. If you are finding it difficult to keep up with your bills, you are not alone and there is help available. Depending on your circumstances, you may be able to access:
- Warm Home Discount – A one-off discount on your electricity bill if you are on a low income or receive certain benefits.
- Winter Fuel Payment – Annual payment to help older people with heating costs in winter.
- Cold Weather Payments – Extra payments during very cold weather for eligible households receiving certain benefits.
- Supplier hardship funds – Some energy suppliers offer grants to help customers clear arrears.
- Priority Services Register – Free support for vulnerable customers, including those with health conditions or disabilities.
- Budgeting plans – Many suppliers can spread your repayments over a longer period to make bills more manageable.
If you are worried about paying your bills, contact your energy supplier as early as possible. You can also reach out to independent advice charities for confidential support.
Home energy in the UK – frequently asked questions
Is it still worth switching energy supplier in the UK?
It can be. Even when prices are high across the market, there can be differences between suppliers and tariffs. Fixed deals may offer price certainty, while some time-of-use tariffs can reward you for shifting usage away from peak times. The key is to compare based on your actual usage and check for any exit fees before moving.
Will a smart meter reduce my energy bill automatically?
A smart meter does not directly cut your unit rate, but it gives you accurate, real-time information about your energy use. This makes it easier to spot waste, avoid estimated bills and choose tariffs that reward off-peak usage. Many households find that the insight from a smart meter leads to lower consumption over time.
What is the Ofgem energy price cap?
The price cap is a limit set by Ofgem on the maximum unit rates and standing charges that suppliers can charge customers on standard variable and default tariffs. It does not cap your total bill; if you use more energy, you will still pay more. However, it does restrict how much suppliers can charge per kWh and per day for covered tariffs.
How can I work out which tariff is best for my home?
Start by gathering your last 12 months of bills and noting your kWh usage for gas and electricity. Then compare tariffs based on unit rates, standing charges, any exit fees, and whether the deal fits your lifestyle (for example, if you are at home in the day or mainly use energy in the evening). If you are unsure, we can help you review the options.
Ready to take control of your home energy?
Share a few details and we will help you understand your current deal, explore better home energy options, and find practical ways to cut your bills.
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