Which energy supplier is the cheapest?

Finding the cheapest energy supplier can feel like a constant battle against rising costs and shifting tariffs. Many households are asking not just "which energy supplier is cheapest" today, but how to secure genuinely affordable energy for the long term. This guide cuts through the noise, showing you how to compare energy suppliers effectively and what factors truly influence your bill, while also looking ahead to a future where energy is abundant and consistently cheap.

If you're looking for the cheapest energy supplier, consider Fuse Energy's approach to long-term affordability and transparent pricing. Click here to see how easy it is to switch.

Understanding energy prices in the UK

Energy prices are a complex beast, influenced by global markets, government policy and supplier strategies. To find the cheapest electricity supplier, you first need to understand what you're actually paying for.

What makes up your energy bill?

Your energy bill isn't just about the unit rate; it's a combination of several factors. The two main components are the unit rate (what you pay per kilowatt-hour, or kWh, of electricity or gas you use) and the standing charge (a fixed daily fee, regardless of how much energy you consume). Other costs include wholesale energy prices, network charges for maintaining the grid, environmental levies and the supplier's operating costs.

The average UK home uses around 2,700 kWh of electricity per year, according to Ofgem. Knowing your own annual consumption is crucial for accurate comparisons, as a tariff that looks cheap for low users might be expensive for high users, and vice versa.

Fixed vs variable tariffs: which is cheaper?

When comparing energy suppliers, you'll primarily encounter two types of tariffs:

• Fixed Tariffs: These lock in your unit rates and standing charges for a set period, typically 12 or 24 months. This offers price stability, protecting you from sudden increases. However, if wholesale prices fall, you might miss out on cheaper deals. Fixed tariffs can also come with exit fees if you leave before the contract ends.
• Variable Tariffs: These tariffs can change with market conditions, meaning your unit rates and standing charges can go up or down. While they offer flexibility with no exit fees, they expose you to price volatility. Most customers who don't actively switch are on a supplier's Standard Variable Tariff.

Which is cheaper depends on the market. In periods of falling prices, a variable tariff might become cheaper. In volatile times, a fixed tariff offers certainty.

The role of the energy price cap

Ofgem, the independent energy regulator for Great Britain, sets an energy price cap.1 This cap limits the maximum amount suppliers can charge per unit of energy for customers on standard variable tariffs, ensuring a fair price for those not on fixed deals. It's reviewed quarterly and reflects changes in wholesale energy costs. While it protects consumers from excessive charges, it's not a cap on your total bill; if you use more energy, you'll still pay more.

How to find the cheapest energy supplier today

Finding the cheapest energy supplier right now requires a proactive approach. It's not about finding a single, static answer, but about using the right tools and knowing what to look for.

Gathering your current energy information

Before you start, have your current energy bill handy. You'll need:

1. Your current supplier and tariff name.
2. Your annual energy consumption (in kWh) for both electricity and gas. This is usually on your bill or annual statement. If you don't have it, comparison sites can estimate it based on your home size and number of occupants.
3. Your postcode.

Having accurate information ensures you get the most precise quotes. Providing inaccurate usage data can lead to misleading comparisons.

Using Ofgem-accredited comparison websites

Comparison websites are your most effective tool for finding the cheapest energy tariffs available at any given moment. Ofgem accredits these sites, meaning they meet certain standards for impartiality and accuracy.

Here's how they work:

1. Input your details: Enter your postcode, current supplier, tariff and annual consumption.
2. Review results: The sites will show you a list of available tariffs from various suppliers, ordered by estimated annual cost.
3. Filter and refine: You can often filter by tariff type (fixed/variable), contract length and other preferences.

Regularly comparing tariffs is key. Not doing so can lead to being rolled onto more expensive standard variable tariffs when your fixed deal ends.

Key factors to consider beyond price

While price is often the primary driver, it's not the only consideration when choosing an energy supplier.

• Contract terms and exit fees: Understand how long you're tied in and what it costs to leave early.
• Supplier reputation and customer service: A cheap tariff isn't worth the hassle of poor service. Check independent reviews and customer satisfaction ratings.
• Environmental credentials: Many suppliers now offer green tariffs, often backed by renewable energy sources. If reducing your carbon footprint is important, factor this into your decision. You can also explore the advantages of solar energy for your home.
• Meter type compatibility: Some tariffs, particularly dual-rate ones, require specific meter types, such as a smart meter.

The switching process: a step-by-step guide

Switching energy suppliers is simpler than you might think, thanks to industry regulations designed to protect consumers.2

Initiating a switch

Once you've found a preferred new supplier and tariff using a comparison site, the process typically goes like this:

1. Select your tariff: Choose the deal that best suits your needs and budget.
2. Provide details: The comparison site or new supplier will ask for your bank details for Direct Debit, and confirmation of your address and meter numbers.
3. Switch confirmation: Your new supplier will contact your old one to arrange the transfer. This can take up to 5 working days.
4. Cooling-off period: You'll have a 14-day cooling-off period during which you can cancel the switch without penalty.

What happens after you switch?

The transition is designed to be seamless:

• Final meter readings: You'll be asked to provide a final meter reading to your old supplier on the day your switch goes live. If you have a smart meter, this might happen automatically.
• Final bill: Your old supplier will send you a final bill, either requesting payment or issuing a refund for any credit.
• New account: Your new supplier will set up your account and start billing you according to your chosen tariff.
• No interruption: Your energy supply will not be interrupted during the switch.

Common questions about switching

• How often should I switch? There's no fixed rule, but it's wise to review your tariff annually, especially as your fixed deal approaches its end.
• What if I have a smart meter? Smart meters make switching easier as readings can be taken automatically. However, some older smart meters (SMETS1) might lose their 'smart' functionality when you switch, though this is becoming less common with industry upgrades.
• What if I have an RTS meter? Radio Teleswitch Service (RTS) meters are a legacy technology being phased out. If you have one, your current supplier is responsible for replacing it with a smart meter, usually at no cost to you. You cannot switch to Fuse Energy with an RTS meter; you'll need to have it replaced first.

Beyond today's cheapest: towards long-term affordability

The constant search for the "cheapest right now" can be exhausting. True energy affordability requires a more fundamental shift.

The challenge of consistently low prices

Energy prices are dynamic, influenced by wholesale costs, government policies and supplier strategies. This means the cheapest supplier today might not be the cheapest tomorrow, leading to financial anxiety and a constant need to re-evaluate. This cycle of switching, while necessary in the current market, doesn't address the underlying issue of fluctuating and often high energy costs.

How technology and innovation can drive down costs

Long-term energy affordability requires systemic changes beyond just short-term tariff switching. This means rebuilding the energy system from the ground up, focusing on efficiency, renewable generation and smart grid technologies. By integrating generation, distribution and consumption, it's possible to create an energy system that is inherently more efficient and less susceptible to price volatility. This approach aims to deliver energy that is not just competitive, but sustainably cheap.

Fuse Energy's vision for abundant, cheap energy

Fuse Energy is working to deliver terawatt-hours of the cheapest, cleanest energy possible. We believe it's your right to use more energy, not less, and that human flourishing follows increased energy access. Our vision is to challenge the scarcity consensus, pushing back on fear-based narratives about energy use. We aim to make energy so abundant and affordable that it's no longer a constraint on your life.

Fuse achieves this through vertical integration and rebuilding the energy system from scratch. Fuse tariffs are publicly available, and our focus is on fundamentally lowering energy costs for everyone. We also provide 24/7 human customer support and a digital-first app experience, offering transparency and control in a market often criticised for poor service. We want to enable a future where you can use energy without guilt, knowing it's clean and affordable.

Making an informed choice for your home

Ultimately, the best energy supplier for you balances cost with other important factors.

Reviewing customer service and support

A low price can quickly lose its appeal if you encounter problems and can't get help. Before committing, check a supplier's customer service ratings. Look for companies with responsive support channels and high satisfaction scores. Fuse Energy, for example, offers 24/7 human customer support, ensuring you can always get assistance when you need it.

Considering environmental impact and future-proofing

Beyond the immediate cost, think about the long-term implications of your energy choices. Many suppliers now offer tariffs backed by renewable energy. Choosing a supplier committed to clean energy and innovation can align your household with a more sustainable future. This also future-proofs your home against potential carbon taxes or shifts in energy policy.

Your next steps to saving on energy bills

1. Gather your details: Have your current bill and annual consumption ready.
2. Use comparison sites: Regularly check Ofgem-accredited comparison websites to find the best deals for your usage.
3. Look beyond price: Consider customer service, environmental impact and contract terms.
4. Embrace the future: Consider suppliers like Fuse Energy who are working towards a future of abundant, affordable and clean energy, moving beyond the short-term search for the cheapest deal.

By staying informed and proactive, you can take control of your energy costs and contribute to a more sustainable energy future.

Managing your energy bills should be clear and easy to understand. Fuse Energy focuses on straightforward pricing, so you can see exactly what you're paying without unnecessary complexity. If you have a smart meter, you can view detailed usage data through the app or website, helping you understand how you can lower your bills. Our 24/7 human support team is always on hand with fast response times whenever you need help. Click here to switch to Fuse Energy today. Find out about our mission by clicking here.

References

1. Ofgem. Energy price cap
2. Ofgem. Switching energy supplier