Energy tariffs with discounted unit rates this month (UK)
See what “discounted unit rates” really means, who can access them, and how to compare whole-of-market tariffs fairly for your meter, region and payment method.
- Understand discounts vs the Ofgem price cap (and why standing charge matters)
- Check eligibility: smart meter, payment method, region, credit checks and exit fees
- Get an estimated quote based on your actual usage and tariff structure
Discounted rates vary by supplier, region and meter type. Figures on this page are examples only—always check your personalised quote and tariff terms.
Fast answer: what are “discounted unit rate” tariffs in the UK?
In UK home energy, a “discounted unit rate” tariff usually means the pence per kWh (your usage rate) is lower than a supplier’s standard variable tariff or lower than other tariffs available at that time. It doesn’t automatically mean your total bill will be cheaper, because your yearly cost depends on:
- Standing charge (p/day) as well as unit rates
- Your region (distribution area affects rates)
- Your payment method (Direct Debit vs prepayment)
- Your meter type (single-rate, Economy 7, smart meter requirements)
- Any exit fees or time-limited discounts/credit
Quick rule: If a tariff advertises a lower unit rate but has a higher standing charge, it may only work out cheaper for higher-usage homes. Low-usage homes often benefit more from lower standing charges.
Key takeaways
- Compare total estimated annual cost, not only p/kWh.
- Check eligibility (smart meter, online account, Direct Debit).
- Confirm whether rates are fixed and for how long.
- Look for exit fees if you might switch again soon.
What to gather before you compare
- Your postcode (sets your region)
- Fuel type (dual fuel or single fuel)
- Meter type: single rate, Economy 7, or prepayment
- Approx usage in kWh (or last 12 months bills)
When “discounted unit rates” are most common
- Introductory fixed deals (often 12–24 months)
- Online-only tariffs (paperless billing)
- Smart meter tariffs (including time-of-use)
- Occasional limited-time launches (availability can change quickly)
Compare discounted unit rate tariffs (whole-of-market)
We’ll help you compare tariffs across the market that may have lower unit rates for your region and meter type. You’ll get an estimated cost based on your details, plus clear notes on standing charges, exit fees and eligibility.
Tip: If you can, have a recent bill to hand so you can enter realistic usage. If you don’t know your kWh, that’s fine—start with a quote and refine once you find your annual usage.
How discounted unit rates work (and what to watch)
1) Unit rate discount
The p/kWh is lower, but the standing charge may be higher. Always compare annual cost for your usage.
2) Time-limited pricing
Some deals are “intro” rates, or fixed for a term. Check what happens after the fixed period ends.
3) Eligibility filters
Discounts may require Direct Debit, online billing, or a smart meter. Prepayment and Economy 7 options can be different.
Two realistic scenarios (example numbers)
These examples show why “discounted unit rate” doesn’t always equal the cheapest total cost. Figures are illustrative only and don’t represent an offer; actual rates vary by region, supplier, payment method and time.
Scenario A: Low-usage flat (single-rate)
- Assumptions
- Electricity 1,800 kWh/year, gas 7,000 kWh/year. Standing charge applies daily. Example uses 365 days.
- Tariff 1 ("discounted" unit rate)
- Elec 23p/kWh + 65p/day; Gas 5.8p/kWh + 35p/day
- Tariff 2 (slightly higher unit rate, lower standing charge)
- Elec 25p/kWh + 50p/day; Gas 6.3p/kWh + 28p/day
- Estimated annual cost
- Tariff 1: ~£1,116 vs Tariff 2: ~£1,087 (Tariff 2 wins due to lower standing charges).
Scenario B: Higher-usage family home (single-rate)
- Assumptions
- Electricity 3,600 kWh/year, gas 14,000 kWh/year. Example uses 365 days.
- Same two tariff structures
- Tariff 1 has lower unit rates but higher standing charges; Tariff 2 is the opposite.
- Estimated annual cost
- Tariff 1: ~£1,810 vs Tariff 2: ~£1,888 (Tariff 1 wins because usage is high enough to benefit from lower p/kWh).
Important: Economy 7 and smart time-of-use tariffs can change the maths significantly because you may have different day/night rates. If you have storage heaters or charge an EV overnight, tell us so your estimate is more accurate.
Get a personalised quote
Share a few details and we’ll match you with tariffs that fit your home. This helps us show availability by region, meter type and payment method.
What you’ll see in your results: unit rates (p/kWh), standing charges (p/day), whether the price is fixed, contract length, exit fees (if any), and eligibility notes (smart meter / Direct Debit / online billing).
Before you switch: quick checks
- If you’re on a fixed deal now, check for exit fees and your end date.
- If you have Economy 7, confirm your day/night split and whether a single-rate tariff suits you.
- If you’re on prepayment, make sure you only compare compatible tariffs.
- Ask your supplier about any debt repayment arrangements before switching.
Compare “discounted unit rate” tariffs: what to look at
Use this table as a quick decision aid. The cheapest option depends on your usage, meter type and whether you can meet eligibility rules.
| Tariff type | How the discount shows up | Best for | Watch-outs |
|---|---|---|---|
| Fixed tariff | Lower p/kWh for a set term (e.g., 12–24 months) | People who want price certainty and won’t switch soon | Exit fees; may not benefit if market prices fall |
| Online-only | Lower unit rate for paperless billing / app management | Confident online account users | Limited customer support channels; eligibility rules |
| Direct Debit discount | Cheaper rates for paying monthly by Direct Debit | Stable income, prefer predictable payments | Monthly amount can change; credit checks may apply |
| Smart / time-of-use | Lower off-peak unit rate at certain times | EV owners, storage heating, shiftable usage | Higher peak rates; requires smart meter; lifestyle fit matters |
| Low standing charge | Not always the lowest p/kWh, but lower daily charge | Low-usage homes (small flats, frequent travel) | Unit rate may be higher; check for minimum term |
Decision checklist: who it suits
- You have higher usage (unit rate matters more than standing charge).
- You can meet requirements (e.g., Direct Debit, online billing, smart meter).
- You’re comfortable with fixed terms or the tariff conditions.
- You’ve checked you’re not paying large exit fees to leave your current deal.
Who it may not suit
- Very low usage (standing charge dominates total cost).
- You need paper bills or prefer cash/top-up methods.
- You have Economy 7 and can’t change your usage pattern.
- You may move home soon and want to avoid exit fees.
Ofgem price cap context: The price cap limits the maximum unit rates and standing charges suppliers can charge for standard variable tariffs in each region (it is not a cap on your total bill). A fixed deal may be above or below the cap depending on market conditions.
Costs, exclusions and common pitfalls
These are the most common reasons a “discounted unit rate” tariff doesn’t work out as expected. Check these before you switch.
Standing charge trade-off
A lower p/kWh can be offset by a higher daily charge. Always review both fuels (if dual) and your annual estimate.
Exit fees and contract terms
Fixed tariffs may charge exit fees per fuel. If you might switch again soon, factor that into your decision.
Meter type mismatch
Economy 7 homes need day/night rates that suit your pattern. Prepayment tariffs can be priced differently and have fewer options.
Intro offers and bill credits
Some deals rely on a one-off credit or a short-term rate. Check when it applies and what happens if you leave early.
Direct Debit setting expectations
Your monthly payment is an estimate and can be adjusted. Submit meter readings (or ensure smart readings are accurate) to avoid surprises.
Regional pricing differences
Rates vary across Great Britain due to network costs. A deal that looks “best” nationally may not be best in your postcode area.
If you’re in debt to your current supplier: you may still be able to switch in some cases, but there can be restrictions—especially on prepayment meters. Consider getting guidance from Citizens Advice before switching.
FAQs
Are discounted unit rate tariffs always below the Ofgem price cap?
Not always. The price cap applies to standard variable tariffs, and it varies by region and payment method. A fixed tariff can be above or below the cap. The right comparison is your estimated annual cost for your usage.
What’s more important: unit rate or standing charge?
Both. Low-usage households are often more sensitive to standing charges. Higher-usage homes tend to feel the impact of unit rates more. That’s why we recommend comparing total estimated yearly cost using your own kWh.
Do I need a smart meter to get discounted rates?
Only for certain tariffs (for example, time-of-use tariffs that charge different rates at different times). Many fixed and online tariffs don’t require a smart meter. If a tariff does require one, the supplier should make this clear before you switch.
Can I access discounted tariffs on a prepayment meter?
Sometimes, but options can be more limited and pricing can differ. Some deals are only for monthly Direct Debit. If you’re on prepay, compare like-for-like and check whether a tariff requires changing your meter or payment method.
Will switching disrupt my energy supply?
In normal circumstances, no. Switching supplier shouldn’t mean your gas or electricity is cut off. Your network operator remains the same; only the company billing you changes.
How quickly can unit rates change?
Availability and pricing can change at short notice, especially for limited-time fixed deals. If you see a tariff that fits, check the tariff end date, the fixed term, and any exit fees before proceeding.
I have Economy 7—should I switch to a single-rate tariff?
It depends on how much electricity you use overnight. If a large share of your usage is off-peak (for example, storage heaters or EV charging), Economy 7 or time-of-use tariffs can be beneficial. If not, a single-rate tariff may be simpler and sometimes cheaper.
What if my usage estimate is wrong?
Your quote is only as accurate as the usage input. If you can, update your estimate using your last 12 months of kWh from bills or statements. For Direct Debit, your monthly payments may be adjusted after you switch if your usage differs.
Trust, methodology and sources
Page stewardship
- Written by
- EnergyPlus Editorial Team
- Reviewed by
- Energy Specialist
- Last updated
- February 2026
How we assess “discounted unit rate” tariffs
We focus on bill impact, not marketing labels. When comparing tariffs, we evaluate:
- Total estimated annual cost (unit rates + standing charges) using user-provided or typical usage assumptions
- Eligibility and friction (payment method, smart meter requirements, online-only conditions, credit checks)
- Risk factors (exit fees, end-of-fix behaviour, variable components)
- Tariff fit for meter types (single-rate, Economy 7, prepayment) and household patterns
Assumptions & limitations (read this)
- Examples are illustrative and not a live market claim. Your actual rates depend on postcode region, supplier and tariff availability.
- Standing charges and unit rates can differ by payment method (e.g., Direct Debit vs prepayment).
- Economy 7, smart time-of-use and multi-rate meters require different calculations (day/night splits and time windows).
- If you’re in a contract, exit fees may apply and should be factored into your decision.
Editorial promise: We aim to explain how pricing works in plain English, highlight who a tariff is likely to suit, and clearly flag the trade-offs (standing charge, exit fees, eligibility). No savings are guaranteed.
Ready to check this month’s discounted unit rates for your home?
Get a personalised comparison using your postcode and contact details. We’ll show estimated costs, eligibility notes and key terms in one place.
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