What is the Energy Price Cap and how does it work?

The Energy Price Cap is a limit set by Ofgem on the maximum unit rates (per kWh) and standing charges energy suppliers can charge most households on default tariffs. It does not cap your total bill—your overall cost depends on your usage. If you think you’re paying more than the cap rates allow, compare tariffs or switch supplier to reduce costs.

What is a standing charge and why do I pay it?

A standing charge is a fixed daily cost you pay for gas and/or electricity to cover essential supply costs such as maintaining the network, metering, and administration. You pay it even if you use no energy. When comparing deals, check both the unit rate and the standing charge to find the best value for your household.

What does kWh mean on my energy bill?

kWh stands for kilowatt-hour and is the standard unit of electricity and gas consumption. Using a 1,000-watt (1 kW) appliance for one hour uses 1 kWh. Your bill is mainly calculated by multiplying your kWh used by the unit rate, then adding the standing charge.

What is a unit rate in energy tariffs?

The unit rate is the price you pay per kWh of gas or electricity. It’s one of the two key parts of your bill (the other is the standing charge). A lower unit rate can significantly reduce costs if you use a lot of energy, so it’s important to compare both figures before switching.

What is a smart meter and should I get one?

A smart meter automatically sends meter readings to your supplier, helping you get accurate bills and track usage more closely (often via an in-home display). It can reduce estimated bills and make switching smoother. Smart meters are typically offered at no upfront cost, but availability and features can vary by supplier and property.

What is Economy 7 and who is it best for?

Economy 7 is a time-of-use electricity tariff with cheaper off-peak rates for around seven hours (usually overnight) and a higher rate during the day. It can suit households that can shift a large portion of usage to off-peak times (for example, homes with storage heaters or overnight EV charging). Always check the day rate versus your current tariff before switching.

What is a fixed tariff and is it worth it?

A fixed tariff typically locks in your unit rates and standing charges for a set period (for example, 12 months), giving you price certainty. It may include exit fees if you leave early. A fixed deal can be worth it if you want predictable costs, but you should compare total expected annual costs and check any fees before you switch.

What is a variable tariff?

A variable tariff can change over time, usually in line with supplier pricing or market conditions. Many households are on a default variable tariff, which is typically covered by the Energy Price Cap (if eligible). Variable tariffs often have no exit fees, but your rates can rise or fall, so it’s worth reviewing your options regularly.

What is an MPAN and where can I find it?

MPAN stands for Meter Point Administration Number and identifies your electricity supply point. You can usually find it on your electricity bill (often in a box labeled ‘Supply number’). You may need your MPAN when switching suppliers or setting up a new account.

What is an MPRN and where can I find it?

MPRN stands for Meter Point Reference Number and identifies your gas supply point. It’s usually printed on your gas bill. Like an MPAN, it’s commonly used during supplier switches or when you’re moving home and setting up your energy supply.

What does ‘estimated bill’ mean and how do I avoid it?

An estimated bill is based on a supplier’s calculation of your usage rather than an actual meter reading. Estimates can be higher or lower than your real consumption. To avoid estimated bills, submit regular meter readings or use a smart meter so readings are sent automatically.

How can I lower my energy bills quickly?

To reduce energy costs quickly, start by comparing tariffs and considering switching to a better-value deal. Also review your heating schedule, lower your thermostat by 1°C where comfortable, and cut standby usage. For longer-term savings, improve insulation and consider efficient appliances. If you’re unsure, get your current unit rates and standing charges from your bill and compare like-for-like.

Energy glossary (UK): key home energy terms explained

Understand the words on your bill, in tariffs and on comparison sites. Use this UK energy glossary to make confident choices—then compare whole-of-market energy deals with EnergyPlus.

Plain-English definitions for common gas and electricity terms
Help with bills: unit rate, standing charge, VAT, meter types
Tariffs explained: fixed vs variable, SVT, Economy 7, tracker
Quick form to compare home energy prices from across the market

Compare energy deals Jump to A–Z glossary

Whole-of-market comparison for home energy. Results depend on availability, your meter type and usage. Terms and prices can change.

Compare home energy with confidence

Energy jargon makes it harder to know whether you’re getting a fair deal. This guide explains the most common UK energy terms—so you can spot the real cost of a tariff (not just the headline price) and switch with clarity.

When you’re ready, use the form to compare whole-of-market home energy deals. We’ll use your postcode and basic details to help you find suitable options for your property and meter type.

Tip: If you’re checking a tariff, always look at unit rate (p/kWh) and standing charge (p/day) together. One low number can hide a high number elsewhere.

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We use your postcode to match you with available tariffs and regional charges.

Read the glossary first

By submitting, you’re asking EnergyPlus to contact you about energy comparisons. Keep your latest bill handy if you have it—especially your meter type and payment method.

Prefer to browse first? Use the A–Z glossary below to decode terms you see on bills, tariff pages and smart meter displays.

What is an energy glossary (and why it helps you save)?

A UK energy glossary is a plain-English list of the words and abbreviations used by energy suppliers, comparison services and regulators. It matters because the true cost of a tariff depends on how the terms apply to your home—your meter type, region, payment method and usage.

You compare like-for-like

Knowing the difference between unit rate and standing charge stops you choosing a tariff that looks cheap but costs more over a year.

You avoid switching delays

Understanding MPAN/MPRN, meter readings and cooling-off helps you provide the right details first time.

You spot unnecessary add-ons

Terms like bundles, cashback and exit fees can change the real value of a deal.

Energy glossary UK (A–Z)

Use this as a quick reference when you’re checking your energy bill, understanding a quote, or comparing tariffs. If you see a term on your account that isn’t listed, you can still compare energy deals and we’ll help you interpret the details.

Quick read: Most household comparisons come down to (1) your annual usage (kWh), (2) the unit rate, and (3) the standing charge.

Term	Meaning (UK homes)	Why it matters
APR	Not usually used for energy tariffs. More common in finance. Energy pricing is typically shown as unit rate and standing charge.	If you see APR attached to a payment plan, check the terms carefully.
Balance	How much you owe (debit) or are in credit with your supplier.	A large credit can indicate your direct debit is set higher than necessary.
Bill (estimated)	A bill based on estimated readings rather than actual/smart readings.	Estimates can drift over time—submit readings to avoid surprise catch-up bills.
Burner efficiency	How efficiently a gas boiler converts gas into usable heat.	Higher efficiency reduces gas usage (kWh), lowering bills even if tariffs stay the same.
Calorific value	A factor used to convert gas volume (m³) into energy (kWh). It varies slightly.	Explains why gas bills show a conversion calculation.
Capped tariff	A tariff with a maximum price level (cap) for a defined period, but prices can still go down or up within that limit.	Different from a fixed tariff; read the cap conditions.
Cooling-off period	A short period after agreeing a switch where you can cancel (timing depends on the channel and contract terms).	If you spot a mistake, act quickly to avoid delays.
Direct Debit	An automatic monthly payment. Often the cheapest payment method.	Tariffs can have different rates depending on payment type.
Dual fuel	Having gas and electricity with the same supplier (if gas is available at the property).	Sometimes convenient, but not always cheapest—compare both ways.
Economy 7	A two-rate electricity tariff: cheaper night rate for ~7 hours and a higher day rate.	Best for homes that use a significant share of electricity overnight (e.g., storage heaters).
Exit fee	A charge for leaving a fixed tariff before it ends (not always present).	Affects whether switching early is worth it.
Fixed tariff	Unit rate and standing charge are set for a fixed term (e.g., 12 months). Your usage still changes your bill.	Gives price certainty; may include exit fees.
Gas (kWh)	Gas usage is billed in kilowatt-hours, even if your meter records in cubic metres or cubic feet.	Helps you compare tariffs and understand your annual consumption.
Green tariff	A tariff marketed as renewable or low-carbon (structure varies by supplier).	Check what’s included (electricity matching, tariffs, certificates, etc.).
kW vs kWh	kW is power (rate of use). kWh is energy used over time (what you’re billed for).	Avoids confusion when estimating appliance costs and annual usage.
Meter point (MPAN/MPRN)	Unique reference numbers for electricity (MPAN) and gas (MPRN) supply points.	Helps identify your supply accurately during a switch.
Ofgem	The UK energy regulator. Sets rules for suppliers and the retail market.	If something goes wrong, Ofgem rules shape complaints handling and standards.
Price cap	A limit on what suppliers can charge for default tariffs (it’s not a cap on your total bill).	Your bill still depends on how much energy you use.
Standing charge	A daily fixed cost to cover supply and network costs, charged regardless of usage.	Critical for low-usage households—can dominate your annual cost.
SVT (Standard Variable Tariff)	A default tariff where prices can change. Many households land on SVT after a fixed deal ends.	Often not the best value—worth comparing when your deal is ending.
Tariff end date	When your fixed term finishes; you may roll onto SVT afterwards.	Start comparing ahead of time to avoid missing better options.
Tracker tariff	A tariff where the price follows a published reference (varies by supplier) and can change more often than a variable SVT.	Can be good when prices fall, but carries higher volatility.
Unit rate (p/kWh)	The cost for each kilowatt-hour of energy you use.	The main driver of cost for medium/high-usage homes.
VAT (5%)	Domestic energy typically has reduced VAT applied. Your bill shows it separately.	Important when checking totals and comparing quote summaries.

Want the fastest route to savings? Go back to Compare deals and submit your postcode—then use the glossary to double-check any unfamiliar wording in the results.

Tariffs & pricing: what to look for

When comparing energy in the UK, focus on the parts of pricing you actually pay. Here’s how to read typical tariff information and what it means for a home budget.

Check the unit rate (p/kWh)
The unit rate is what you pay per kWh used. If you use more energy, this matters more.
Check the standing charge (p/day)
A fixed daily charge. Lower standing charges can help low-usage homes, but may come with a higher unit rate.
Confirm your payment method
Prices can differ for Direct Debit vs pay on receipt of bill. Make sure you compare on the same basis.
Look for term length, exit fees and price change rules
Fixed deals can have exit fees; variable or tracker deals can change price during the term.

Fixed vs variable vs tracker

Fixed: rates stay the same for the term.
Variable (SVT): can change; often default after fixed ends.
Tracker: changes more often and follows a stated reference.

Economy 7 and other time-of-use

If you have storage heaters or charge an EV overnight, a time-of-use tariff can help—provided a meaningful share of your usage happens off-peak. If most of your usage is daytime, it can cost more.

Meters explained: smart, credit and prepayment

Your meter setup affects which tariffs you can access and how accurately you’re billed. If you’re unsure what you have, check your bill or meter display—then compare based on the right meter type.

Meter type	What it is	Switching notes
Smart meter	Sends readings automatically and can show in-home usage data.	Can simplify accurate billing; some tariffs may be smart-meter compatible.
Credit meter	You use energy and pay later (Direct Debit or on receipt of bill).	Often widest tariff choice.
Prepayment (PAYG)	You pay before you use energy (top-ups via card, key, app or online).	Tariff availability can differ; always compare like-for-like.
Two-rate (Economy 7)	Records day and night electricity at different rates.	Make sure quotes match your actual meter and usage pattern.

Good to know: If your bills are frequently estimated, ask your supplier how to submit readings—or consider a smart meter if suitable for your home.

Bills & payments: the terms you’ll see most

Direct Debit review

Suppliers periodically review your payment amount based on expected annual usage. If you’ve built up a lot of credit, you can ask for a reduction or refund (subject to supplier policy).

Estimated vs actual readings

An “estimated” bill can be higher or lower than reality. Over time, the gap is corrected—often as a catch-up bill. Regular readings reduce surprises.

Payment method

Direct Debit, pay on receipt of bill, or prepayment. Pricing can differ—always compare using your real method.

Billing period

The dates your charges cover. Useful for checking seasonal usage changes and whether readings align.

VAT

Typically shown as a separate line. If you’re comparing totals, check whether figures include VAT.

Common energy comparison mistakes (and how to avoid them)

Comparing by monthly Direct Debit only

Monthly payments can be smoothed across the year and influenced by credit/debit balance. Use unit rate and standing charge, plus estimated annual usage, for the clearest picture.

Selecting the wrong meter or tariff type

Economy 7, prepayment and smart setups can change what’s available. If you’re unsure, check your bill before switching.

Ignoring exit fees

If you’re on a fixed tariff, an exit fee can reduce (or wipe out) the benefit of switching early. Compare savings over the remaining term.

Not updating readings

Switching is smoother when opening/closing readings are accurate. If you don’t have a smart meter, submit readings around your switch date.

Energy glossary UK: FAQs

What does kWh mean on my electricity bill?

kWh stands for kilowatt-hour, a measure of energy used. Your unit rate is charged per kWh, so more kWh means a higher usage charge.

Why do I pay a standing charge?

The standing charge is a daily cost that contributes to running and maintaining the energy networks and account costs. You pay it even if you use no energy on a given day.

Is a fixed tariff always cheaper?

Not always. A fixed tariff offers price certainty for the term, but the unit rate and standing charge may be higher than alternatives at certain times. Compare based on your usage and check for exit fees.

What’s the difference between SVT and variable?

SVT is a type of variable tariff (often the default). “Variable” simply means prices can change, whereas SVT usually refers to the supplier’s standard default option.

Do I need my MPAN or MPRN to compare?

Not always, but they can help confirm your supply details. Your bill typically shows them. If you don’t have them to hand, you can still start a comparison with your postcode and basic information.

Trusted help for UK home energy comparisons

People use EnergyPlus to cut through confusing tariff language and compare options across the market. Here’s what customers typically value when switching or renewing.

“Clear explanation of unit rates and standing charges.”

“I finally understood what I was paying for and could compare properly.”

Home energy customer

“Quick quotes with my postcode.”

“The form was simple and I got options that matched my meter type.”

Home energy customer

“Helpful, no-nonsense guidance.”

“I knew what questions to ask and avoided choosing the wrong tariff.”

Home energy customer

Trust basics: Whole-of-market comparison • UK home energy focus • Clear pricing components (unit rate + standing charge) • Accessible guidance.

Ready to compare home energy deals?

Now you’ve got the terminology covered, take the next step: compare whole-of-market tariffs with EnergyPlus and find an option that fits your meter and household usage.

Quick postcode-based matching
Fixed, variable and (where available) time-of-use options
Clarity on unit rates, standing charges and key terms

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Updated on 21 Jan 2026