How to find cheap electricity rates

Reducing household electricity costs is a priority for many. By understanding how electricity rates are structured and actively managing your consumption, you can identify and utilise the most cost-effective tariffs available. This guide will walk you through the process, from understanding your usage to switching to a cheaper rate and optimising your energy habits.

Finding genuinely cheap electricity rates means understanding your usage and choosing the right tariff. Fuse Energy offers transparent pricing and tools to help you manage your consumption effectively. Click here to switch to Fuse Energy today.

Understanding cheap electricity rates

A 'cheap' electricity rate isn't just about the lowest advertised unit price; it's about finding the best value for your specific usage patterns. The overall cost of your electricity bill is influenced by several factors, including the unit rate (pence per kilowatt-hour, or kWh), the daily standing charge, and your total consumption.

What defines a 'cheap' rate?

A genuinely cheap rate is one that aligns with how and when you use electricity, ultimately leading to lower overall bills. For an illustrative Direct Debit household on the Ofgem price-Cap default tariff for 1 July to 30 September 2026, electricity is 26.11p per kWh, inclusive of 5% VAT. This figure provides a benchmark, but your actual costs will depend on your tariff and usage. The average UK home uses around 2,500 kWh of electricity per year, which is roughly 6.8 kWh per day.

Factors influencing electricity prices

UK electricity prices are primarily influenced by wholesale costs and the Ofgem Price Cap. Ofgem, the UK's energy regulator, sets a maximum unit rate and standing charge for standard variable tariffs, limiting what suppliers can charge. Wholesale costs, driven by factors like global energy markets and geopolitical events, directly impact the price suppliers pay for electricity, which in turn affects the rates offered to consumers.

Exploring dual-rate tariffs

Dual-rate tariffs, such as Economy 7, offer a way to access cheaper electricity during specific off-peak hours.

How Economy 7 and other dual-rate tariffs work

Dual-rate tariffs, sometimes called time-of-use tariffs, provide different electricity prices depending on the time of day. These tariffs typically offer cheaper rates during off-peak hours, often overnight, in exchange for higher rates during peak times. The "7" in Economy 7 refers to the seven hours of cheaper electricity available, usually overnight. This structure encourages households to shift high-energy activities, like running washing machines or charging electric vehicles, to these cheaper periods.

When is the cheapest time to use electricity?

The cheapest time to use electricity in the UK is almost always late at night or in the early hours of the morning, typically between midnight and 7am. This is when demand on the National Grid is lowest as businesses close and most people are asleep. While these hours are common for Economy 7, exact timings can vary by supplier and region, and may also shift with British Summer Time. Some modern tariffs might also offer cheaper windows at weekends or during secondary off-peak periods in the early evening.

Is a dual-rate tariff right for your home?

Dual-rate tariffs can lead to significant savings if you can consistently shift a substantial portion of your electricity usage to off-peak hours. To see real benefits, you generally need to use a considerable amount of your electricity during these cheaper periods, as daytime rates on these tariffs can be higher than standard tariffs. If your household primarily uses electricity during the day, a single-rate tariff might be more cost-effective.

The role of smart meters

Smart meters are crucial for accessing and accurately benefiting from modern electricity tariffs, especially dual-rate options.

Smart meters and tariff eligibility

A smart meter measures your gas and electricity usage and automatically sends readings to your energy supplier, ensuring accurate bills. While a smart meter is not strictly required for all dual-rate tariffs, they are highly beneficial for accurately tracking consumption across different pricing periods and accessing the full range of modern time-of-use tariffs. Eligibility for dual-rate tariffs depends on your meter's configuration, which can include manual dual-rate meters. However, without a smart meter, you might find some of the most flexible and dynamic pricing structures unavailable, potentially limiting your ability to maximise savings.

Getting a smart meter

If you don't already have a smart meter, your energy supplier is legally obliged to offer and install one for you free of charge. The industry-wide phase-out of Radio Teleswitch Service (RTS) meters means these legacy meters, which use a radio signal to switch between peak and off-peak rates, are being replaced with smart meters. The RTS shutdown began on 30 June 2025, and if you have an RTS meter, your supplier will contact you to arrange an upgrade to a smart meter to avoid disruption to your heating and hot water supply.

Finding and switching to a cheaper tariff

Once you understand your usage and the types of tariffs available, the next step is to compare deals and make the switch.

Comparing electricity deals

To find the most advantageous cheap electricity tariff, you need to research and compare available options. This includes looking beyond just the headline unit rates to consider standing charges, potential exit fees, and how the tariff structure fits your consumption habits. Online comparison tools can help you evaluate different tariffs, including dual-rate options, based on your estimated usage.

The switching process

Switching to a new electricity tariff or supplier is generally straightforward. Once you've chosen a new tariff, your new supplier will handle most of the process. Domestic energy supplier transfers must complete within 5 working days of agreeing to a new contract and providing sufficient information. You don't need to contact your old supplier, and there should be no interruption to your electricity supply during the switch. Fuse aims to offer competitive and transparent electricity tariffs, and its 24/7 human customer support is available to assist with understanding tariffs and managing accounts.

Maximising your savings with cheap electricity

Switching to a cheaper tariff is a great start, but optimising your energy usage is key to maintaining low bills.

Optimising your energy usage

With a dual-rate tariff, the most effective way to maximise savings is to adjust your electricity usage to align with the cheaper off-peak periods. This could involve:

• Running appliances overnight: Use washing machines, dishwashers, and tumble dryers during off-peak hours.
• Charging electric vehicles: Schedule EV charging for the cheapest overnight slots.
• Using storage heaters: If you have them, ensure they are set to charge during the off-peak window.

The Fuse app provides clear visibility of energy usage, empowering customers to understand and optimise their consumption during cheaper periods.

Beyond the tariff: other ways to save

Even with the cheapest rate, reducing your overall consumption will further lower your bills. Consider these tips:

• Energy-efficient appliances: Modern appliances often use less electricity.
• Insulation: Improve your home's insulation to reduce heating and cooling needs.
• Standby power: Turn off appliances at the wall rather than leaving them on standby, which can still draw power.

By taking control of your energy choices and usage, you can achieve and maintain genuinely cheap electricity rates, shifting the focus from scarcity to smart consumption and cost savings.

Ready to take control of your electricity bills and find a tariff that truly fits your lifestyle? Fuse Energy makes it simple to switch to transparent, competitive tariffs designed for modern homes. With 24/7 human support and an intuitive app to track your usage, managing your energy has never been easier. Click here to switch to Fuse Energy today. You can also learn more about our mission to make energy abundant and affordable by clicking here.