Compare Home Electricity Tariffs

What makes up your home electricity bill

Your electricity bill has several components. Understanding each one helps you compare available tariffs more accurately.

Unit rate

The unit rate is the price you pay per kilowatt hour (kWh) of electricity used, expressed in pence per kWh. It is typically the largest driver of your bill for most households, particularly those with higher consumption. Compare unit rates alongside standing charges to get a clear picture of total cost.

Standing charge

Like gas, electricity tariffs include a daily standing charge — a fixed fee regardless of consumption. It covers the cost of your connection to the electricity distribution network. Some tariffs offer a lower standing charge offset by a higher unit rate, or vice versa.

Fixed vs variable tariffs

Fixed-rate tariffs lock in your unit rate and standing charge for a set period, providing price certainty. Variable tariffs can change when your supplier adjusts its pricing. Each has different characteristics depending on your usage patterns and outlook on the energy market.

Economy 7 and time-of-use tariffs

Economy 7 is a two-rate electricity tariff that charges a lower unit rate during a seven-hour off-peak window, typically overnight. It is designed for homes that can shift usage to those hours — for example, those with storage heaters or an electric vehicle charged overnight. Smart meters are enabling newer time-of-use tariffs that offer variable rates across different times of day.

What the price cap lets suppliers charge for electricity

Ofgem resets the cap every three months. For a direct debit customer on a default (standard variable) tariff, the current cap, 1 July to 30 September 2026, allows an average of 26.11p per kWh and a standing charge of 57.19p per day, including VAT at 5%. From 1 October to 31 December 2026 the figures are 26.32p per kWh and 54.83p per day. The government has removed VAT from electricity bills from 1 October 2026 to 31 March 2027, so the October figures are not directly comparable with earlier periods; gas keeps 5% VAT. Across gas and electricity together, Ofgem puts the change at a 4% rise for a typical direct debit household.

Source: Ofgem, Changes to energy price cap between 1 July and 30 September 2026 (27 May 2026) and Changes to energy price cap between 1 October and 31 December 2026 (26 August 2026). Figures are for direct debit customers on a default tariff, averaged across England, Scotland and Wales; your region and payment method change the exact rate. Regional and payment-method tables: Ofgem unit rates and standing charges.

What that means for a medium-use home

At Ofgem’s medium typical consumption of 2,700 kWh a year, the October to December rates work out at about £711 for the electricity used plus £200 in standing charges: roughly £911 a year, or £76 a month, if a whole year were charged at that level. The same sum at the current July to September rates is about £914 a year. Economy 7 and other time-of-use tariffs have their own capped rates, and fixed tariffs are not capped at all, so use these figures as the benchmark when you compare.

How much electricity does a typical UK home use?

Ofgem defines three consumption tiers for typical domestic electricity use per year:

• Low usage – around 1,800 kWh per year
• Medium usage – around 2,700 kWh per year
• High usage – around 4,100 kWh per year

Actual consumption depends on the number and efficiency of appliances, whether you use electric heating, whether you charge an electric vehicle at home, and your cooking methods. Unlike gas, electricity usage tends to be more evenly distributed across the year, though heating and lighting demand increases in winter.

Smart meters and what they mean for your tariff

Smart meters send automatic readings to your supplier, removing the need for estimated bills and manual meter reads. They also enable access to time-of-use tariffs, which price electricity differently across the day. If you have a second-generation (SMETS2) smart meter, readings can be shared with a new supplier when you switch. Availability of smart-enabled tariffs varies by supplier.

Your MPAN — what it is and where to find it

Your MPAN (Meter Point Administration Number) is a 21-digit reference that uniquely identifies your electricity supply point. It is not your account number — it remains the same regardless of your supplier. You can find it on your electricity bill, typically near the meter details section. Having it available when comparing tariffs helps suppliers give you accurate quotes.

When to review your electricity tariff

If you are on a variable or default tariff, you can review at any time. If you are on a fixed contract, start reviewing around six to eight weeks before it ends — this gives you time to arrange a new tariff before potentially moving onto a variable rate.

Checklist before you compare

• Find your current tariff name and end date on a recent bill
• Note your annual electricity consumption in kWh
• Locate your MPAN (on your electricity bill)
• Check whether you have a single-rate or multi-rate (Economy 7) meter
• Check whether you have a smart meter
• Review exit fees on your current tariff
• Compare total annual costs — unit rate and standing charge together