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- What are energy tariffs?
- How do you choose the best energy tariff?
- What is a fixed energy tariff?
- What are the most popular fixed tariffs in the UK?
- Pros and cons of fixed energy tariffs
- What is a variable energy tariff?
- What are the most popular variable tariffs in the UK?
- Pros and cons of variable energy tariffs
- What is the best energy tariff in the UK?
- Does having a smart meter help?
- What is the Energy Price Cap?
- Can I switch energy tariff?
- What is a green tariff?
- Standing charges explained
- Summary
- Energy tariffs determine how much you pay per kWh of gas and electricity, as well as any daily standing charges
- The type of tariff you choose (fixed, variable, or tracker) can significantly affect your energy bills
- By understanding what tariffs are, you will be able track kWh energy prices, and switch to the best deal for you
An energy tariff is the pricing plan offered by a supplier, which determines how much you pay for each unit of energy you use and any daily standing charges. They can vary widely, with some locking in prices for a set period and others changing in line with market conditions or the energy price cap.
Knowing how these tariffs work makes it easier to compare deals and estimate future bills. It can also be useful to monitor kWh energy prices in the UK to see how unit rates change over time and how different tariffs compare to current market levels.
In this guide we’ve looked at 27 different energy tariffs currently available on the market and explained the difference between fixed and variable, as well as examined how the ongoing war between the US and Iran could affect how much you pay.
What are energy tariffs?
In simple terms, energy tariffs are the pricing plans your gas or electricity company offers you. Such tariffs, or contracts, will set how much cash you spend each month per unit of energy (usually expressed in kilowatt-hours, kWh for short).
In the UK, most tariffs will also include a standing charge (more on those later). Yet other specialist tariffs also exist to incentivise customers to use low-carbon tech like EV tariffs, heat pump tariffs, or solar panel tariffs.
Tariffs will also dictate if the price you pay changes over time (i.e., is variable) or is fixed for a set time. Other tariffs also exist for those properties with smart meters, which can include time-of-use and flexible payment plans.
These agreements will also include other terms and conditions, such as the length of the contract, whether any exit fees apply, etc.
How do you choose the best energy tariff?
To choose the best tariff for you, consider this rule-of-thumb step-by-step guide:
1. Check your annual energy usage
- Find your typical yearly gas and electricity consumption in kWh.
- You can usually find this on recent bills or in your supplier account.
2. Consider your household size
- Low usage (e.g., single occupants): look for tariffs with low or zero standing charges.
- Higher usage (families or large households): tariffs with higher standing charges but lower unit rates may work out cheaper.
3. Think about when you use energy
- Are you out most of the day, or working from home?
- Do you use more electricity during the day or at night?
4. Check if time-of-use tariffs make sense
- Tariffs like Economy 7 or Octopus Go offer cheaper electricity during certain hours.
- These work best if you can shift usage (e.g., EV charging, laundry) to off-peak times.
5. Decide how much price certainty you want
- Fixed tariffs: predictable bills and protection from price increases.
- Variable tariffs: may track the market but can rise or fall.
6. Consider future energy changes
- Are you planning to get an electric vehicle?
- Are you installing solar panels, battery storage, or a heat pump?
- Some tariffs are designed specifically for these technologies.
7. Look for incentives or switching bonuses
- Some suppliers offer:
- Introductory discounts
- Reduced unit rates for a limited period
- Referral credits
- Introductory discounts
8. Compare the total annual cost
- Calculate the estimated yearly cost, including standing charges.
- Don’t just look at the unit price.
What is a fixed energy tariff?
One of the most popular types of tariff is a fixed tariff. As we’ve previously explained, these are best if you want to have a predictable cost every month to help you budget.
Energy providers also like predictability, so fixed energy tariffs tend to also attract some of the best incentives and deals on the market.
With them, you’ll pay more than other tariffs, but you’ll also be cushioned from spikes in wholesale energy prices. Of course, this only applies to the tariff’s rates, not your actual consumption.
If you use more, or indeed less, between months, then your final bill will change accordingly. But, of course, you knew that.
The current conflict in the Middle East has seen some rocketing prices in wholesale oil, which will have a knock-on impact on energy prices in the UK. For this reason, it has come to light that some energy providers have started to pause or even pull cheap fixed-rate tariffs.
You can learn more about it on our dedicated page here. This is a developing situation, but experts are warning consumers to try to get a fixed deal before they disappear.
A word of caution, however. If you are planning on moving home soon, or the fixed rate is significantly higher than the current variable rate, you might not want to consider a fixed tariff since they tend to attract exit fees for early closure.
What are the most popular fixed tariffs in the UK?
| Energy Supplier | Tariff Name | Duration | Estimated Annual Bill | Saving vs Jan Cap (£1,758) | Saving vs April Cap (£1,641) | Exit Fees | Availability | Notes |
|---|---|---|---|---|---|---|---|---|
| Utility Warehouse | UW Fixed Saver 74 | Fixed until 31 Jan 2027 (~23 months) | £1,513 | £245 | £128 | £150 | Via Utility Warehouse (requires bundle) | Must take at least two additional UW services (e.g., broadband/mobile). Smart meter required. |
| E.ON Next | Next Fixed 15m v7 | 15 months | £1,533 | £225 | £108 | £100 | Direct via E.ON Next | MoneySavingExpert exclusive tariff. Includes £20 cashback. |
| Utility Warehouse | UW Fixed 74 | Fixed until 31 Jan 2027 (~23 months) | £1,601 | £157 | £40 | £150 | Via Utility Warehouse (bundle required) | Requires at least one additional UW service (broadband/mobile etc.). Smart meter required. |
| Outfox Energy | Fix’d Dual Mar26 12M v3.0 | 12 months | £1,642 | £116 | -£1 (slightly above April cap) | £150 | Direct via Outfox Energy | |
| Outfox Energy | Fix’d Dual Mar26 12M v3.0 – Family Advantage+ | 12 months | £1,666 | £92 | -£25 | £150 | Direct via Outfox Energy | Family Advantage+ tariff variant. |
| Utility Warehouse | UW Fixed Start 74 | Fixed until 31 Jan 2027 (~23 months) | £1,683 | £75 | -£42 | £150 | Via Utility Warehouse | Requires a smart meter |
Note: Based on an existing fixed tariff with an electrical use of 2,700kWh and 11,500kWh gas at a £145 monthly bill. Tariffs compiled from supplier websites and comparison services, including MoneySavingExpert.
Comparison also based on dual-fuel tariffs with the same supplier and based on the central Didcot (UK’s most “average town”) postcode. The above also benefit from the Warm Home discount if applicable to you. The UK energy price cap set by Ofgem is expected to fall to around £1,641 per year from April 2026 for a typical dual-fuel household paying by direct debit. Prices correct as of early March 2026.
Pros and cons of fixed energy tariffs
- Price certainty – Unit rates and standing charges remain the same for the length of the contract.
- Protection from price rises – Your bills won’t increase if wholesale energy prices go up.
- Easier budgeting – Predictable energy costs make it easier to manage household finances.
- Peace of mind – Less need to constantly monitor the market or switch tariffs.
- No benefit from falling prices – If market prices drop, you remain locked into your fixed rate.
- Exit fees – Many fixed deals charge penalties if you leave the contract early.
- Potentially higher starting price – Fixed tariffs sometimes include a premium compared with variable tariffs.
- Less flexibility – Switching to a better deal or adapting to new incentives can be harder during the contract period.
What is a variable energy tariff?
A variable energy tariff is a pricing plan where the price you pay per unit of gas or electricity can go up or down over time.
Put simply, it is effectively the opposite of a fixed tariff. These tariffs work by you paying for each kWh of energy used, which rises or falls with the energy market.
Unlike fixed tariffs, variable ones tend to not have exit fees, and you are usually not tied into long contracts.
In the UK, many variable tariffs follow the price cap set by Ofgem, which limits how much suppliers can charge, but it still changes every few months. These kinds of tariffs are best for people who don’t want a long-term commitment to a single supplier.
They are, however, far less predictable when it comes to monthly budgeting, and prices can balloon quickly, especially during geopolitical shocks like wars.
What are the most popular variable tariffs in the UK?
| Supplier | Tariff | Tariff Type | Avg. Annual Bill | Saving vs Jan Cap (£1,758) | Exit Fees | Availability | |
|---|---|---|---|---|---|---|---|
| So Energy | So Green Tracker | Tracker (Price Cap linked) | £1,683.00 | £75.00 | £50 per fuel | Direct via So Energy – Requires Smart Meter | |
| EDF Energy | Simply Tracker Mar27 | Tracker (Price Cap linked) | £1,684.00 | £74.00 | £25 per fuel | Direct via EDF | |
| Utility Warehouse | Double Gold | Variable | £1,684.00 | £74.00 | £0.00 | Direct via Utility Warehouse | |
| British Gas | Cap Tracker Mar27 v1 | Tracker | £1,684.00 | £74.00 | £10 per fuel | Direct via British Gas | |
| Fuse Energy | Variable Import (Price Capped tariff) | Variable | £1,713.00 | £45.00 | £0.00 | Direct via Fuse Energy | |
| Utility Warehouse | Gold | Variable | £1,714.00 | £44.00 | £0.00 | Direct via Utility Warehouse | |
| London Power | My London Flexible Plan | Price Capped | £1,725.00 | £33.00 | £0.00 | Direct via London Power | |
| Octopus Energy | Flexible Octopus | Price Capped | £1,725.00 | £33.00 | £0.00 | Direct via Octopus Energy | |
| Co-op Energy | Co-op Flexible | Price Capped | £1,725.00 | £33.00 | £0.00 | Direct via Co-op Energy | |
| So Energy | So Flex | Price Capped | £1,733.00 | £25.00 | £0.00 | Direct via So Energy | |
| Utility Warehouse | Value | Price Capped | £1,733.00 | £25.00 | £0.00 | Direct via Utility Warehouse | |
| Good Energy | Good Energy Deemed DD | Variable | £1,734.00 | £24.00 | £0.00 | Direct via Good Energy | |
| Utilita | Smart Energy | Price Capped | £1,734.00 | £24.00 | £0.00 | Direct via Utilita | |
| ScottishPower | Standard | Price Capped | £1,734.00 | £24.00 | £0.00 | Direct via ScottishPower | |
| British Gas | Standard Variable | Price Capped | £1,734.00 | £24.00 | £0.00 | Direct via British Gas | |
| EDF Energy | Standard Variable | Price Capped | £1,734.00 | £24.00 | £0.00 | Direct via EDF | |
| Sainsbury’s Energy | Standard Variable | Price Capped | £1,734.00 | £24.00 | £0.00 | Direct via Sainsbury’s Energy | |
| Sainsbury’s Energy | Track and Reward 12m v1 | Tracker | £1,734.00 | £24.00 | £0.00 | Direct via Sainsbury’s Energy – Requires Smart Meter | |
| E.ON Next | Next Flex | Price Capped | £1,734.00 | £24.00 | £0.00 | Direct via E.ON Next | |
| Outfox Energy | Fox Standard Dual | Price Capped | £1,734.00 | £24.00 | £0.00 | Direct via Outfox Energy |
Note: Based on an existing variable tariff with an electrical use of 2,700kWh and 11,500kWh gas at £145 monthly bill. Tariffs compiled from supplier websites and comparison services, including MoneySavingExpert.
Comparison also based on dual-fuel tariffs with the same supplier and based on the central Didcot (UK’s most “average town”) postcode. The above also benefit from the Warm Home discount if applicable to you. The UK energy price cap set by Ofgem is expected to fall to around £1,641 per year from April 2026 for a typical dual-fuel household paying by direct debit. Prices correct as of early March 2026.
Pros and cons of variable energy tariffs
- Flexibility – Most variable tariffs allow you to switch suppliers or tariffs without exit fees.
- Potential to benefit from falling prices – If wholesale energy costs drop, suppliers may reduce their rates.
- Often simple default option – Many suppliers place customers on standard variable tariffs after fixed deals end.
- Usually protected by the price cap (in the UK) – This limits how high suppliers can set unit rates and standing charges for standard variable tariffs.
- Price uncertainty – Energy prices can rise at any time, making bills harder to predict.
- Exposure to price increases – Your bills can rise when market prices increase.
- Harder to budget – Monthly costs can fluctuate depending on price changes and seasonal usage.
- Still subject to price cap changes – Bills can increase when the energy price cap is adjusted (typically every few months).
What is the best energy tariff in the UK?
There is no single “best” energy tariff in the UK, as the right option depends on your priorities (as we explained earlier) and location. However, some of the cheapest fixed deals currently available offer significant savings compared with the current energy price cap.
For example, E.ON’s Next Fixed 15m v7 is among the most competitive fixed tariffs on the market. With an estimated annual bill of £1,533, it is around £225 cheaper than the January 2026 price cap (£1,758) and roughly £108 cheaper than the expected April 2026 cap (£1,641) for a typical dual-fuel household.
This tariff fixes prices for 15 months, protecting against energy prices, although it carries an exit fee of £75 per fuel if you leave early. Utility Warehouse’s UW Fixed Saver 74 offers similar savings and fees, and Outfox Energy and Octopus Energy often rank high for the “best deals” UK-wide.
While these deals currently appear among the cheapest fixed tariffs available, households should also consider factors such as contract length, exit fees, and whether they expect energy prices to fall further before deciding which tariff is best for them.
Does having a smart meter help?
Yes, having a smart meter can help. Smart meters typically won’t save money in and of themselves, but rather they help you track and monitor your energy use far more accurately. They also enable you to see how much you are paying for each fuel type in real time.
This means you can more easily adapt your habits to help lower your monthly and yearly bills. Smart meters also provide energy suppliers with readings automatically, meaning no more estimations.
Some cheaper tariffs may also require one to be installed, if not already present. You don’t need to front up the cost for this, as most energy suppliers will supply it for free.”
What is the Energy Price Cap?
The energy price cap is a limit on how much energy suppliers can charge customers on standard variable tariffs. In the UK, it’s set by Ofgem and updated every three months.
Importantly, it’s not a cap on your total bill. It caps the maximum price per unit of gas and electricity, plus the daily standing charge. That means your bill still depends on how much energy you use.
The cap is based on what Ofgem calculates it costs suppliers to buy energy and run their services. If wholesale gas and electricity prices rise, the cap can go up. If they fall, the cap can come down.
It mainly protects households that haven’t switched to a fixed deal, preventing suppliers from charging excessively high rates.
In simple terms, it’s a government-regulated safety limit on unit prices, but you’re still in control of your final bill through your usage.
Can I switch energy tariff?
Yes, in most cases you absolutely can switch energy tariff, and the process is usually quick and straightforward. But it’s important to understand that you might have to pay an exit fee if you switch from a fixed contract.
You are generally able to switch tariffs at any time, either with your current supplier or by moving to a new one. If you are on a standard variable tariff, switching is typically free, and you can leave whenever you want.
However, if you are on a fixed-term contract, you may have to pay an exit fee if you leave before the contract ends. These fees are usually charged per fuel (gas and electricity) and cover the cost of energy the supplier bought in advance for your deal.
Under Ofgem rules, you can switch without paying exit fees during the final 49 days of a fixed tariff. This period is known as the ‘switching window’, and suppliers must inform you when your contract is approaching its end.
The switching process itself is usually pretty simple, with most of the details handled by the new supplier, and it typically completes within about five working days. You should also not experience any interruption to your energy supply.
That all said, before switching, it’s worth checking your current tariff, any exit fees, and how much you could save by moving to a cheaper deal.
What is a green tariff?
As the name suggests, a green tariff is one where the energy supplier pledges to you (the consumer) to match your electrical usage from renewable sources like wind, solar, or hydro. What this means in practice is that the actual units of energy you receive may be from non-renewable sources, but they will make efforts to buy from renewable sources or fund green energy projects.
In most cases, though not all, this is actually achieved by the suppliers purchasing something called Renewable Energy Guarantees of Origin (REGOs). These are effectively certificates that they use as evidence that the energy purchased by your supplier is from a renewable energy supply.
Suppliers may also buy energy from Power Purchase Agreements (PPAs) to sell to you through the tariff.
Standing charges explained
A standing charge, in case you are unaware, is a fixed daily fee you pay for energy, regardless of how much gas or electricity you use.
It is designed to cover the cost of maintaining the energy network, meters, and billing systems. Standing charges will also include costs to the supplier for government social and environmental schemes, like levies.
Even if you use no energy that day, the standing charge still applies and appears on your bill.
The average standing charge for electricity in the UK until 31 March 2026 is around £200 a year if you pay by direct debit or prepayment meter and £230 if you by standard credit. On the 1 April, when the new energy price cap comes into effect, this will change to £209 for direct debit or prepayment meter and £240 when you pay by standard credit.
When it comes to gas, the average standard charge until 31 March 2026 is £128 when you pay by direct debit or prepayment meter (this will drop to £106 on 1 April with the new energy price cap) and £157 when you pay by standard credit, set to fall to £134 on 1 April.
Summary
- Energy tariffs are energy contracts that determine the unit rate and standing charge for gas and electricity.
- Fixed tariffs lock in prices for a set period, providing certainty if energy prices rise.
- Variable tariffs change over time, often following the energy price cap set by Ofgem.
- Tracker tariffs move in line with market prices or the price cap and can sometimes offer lower costs.
- Exit fees may apply if you leave a fixed tariff early, so always check contract terms before switching.
- Comparing tariffs and monitoring kWh energy prices in the UK can help households find the best deal and manage energy costs more effectively.
