Energy Comparison: Cheapest Energy Suppliers In The UK

According to the latest research from the Office for National Statistics (ONS), four out of every ten households across the UK face difficulties paying their energy bills. The same study also revealed that 44% of the UK population is reducing their energy consumption to lower their costs. As a student, you need to choose one of the cheapest energy suppliers in the UK to further reduce your costs of studying in the UK.  

Strangely, comparing prices and locating the lowest energy providers could actually drain your energy. But it’s a really simple process from there after you’ve decided on the energy you want to use and from providers such as Octopus Energy, Shell Energy, British Gas, and others. The main sources of energy usage are your gas, electricity and broadband bills. Your energy expenses are mostly impacted based on the locality in which you reside and the leading energy supplier in your area. It is important to ascertain whether gas and electricity are included in the rent or if you will need to purchase them separately before moving into a new home.

Energy Comparison: Compare Gas & Electricity

Cheapest Energy Suppliers In The UK: Key Updates Of 2024 

From 1 April 2024, the energy price for a typical household that uses gas and electricity and pays by Direct Debit will go down by £238. This will reduce the energy price cap from £1,928 to £1,690 per year, a reduction of around 12%. The amount you pay will depend on how much energy your household uses, where you live and the type of meter you have.

Electricity rates: for standard variable tariff (default tariff) with Direct Debit payment:

• Average rate: 24.50 pence per kilowatt hour (kWh)
• Daily standing charge: 60.10 pence per day

Gas rates: For standard variable tariff (default tariff) with Direct Debit payment:

• Average rate: 6.04 pence per kilowatt hour (kWh)
• Daily standing charge: 31.43 pence per day

View and compare Energy price cap levels

• 1 April 2024 to 30 June 2024
• 1 January to 31 March 2024
• 1 January 2024 to 30 June 2024 standing charges and unit rates by region

Changes for prepayment meter or Direct Debit customers

From 1 April 2024:

• Prepayment and Direct Debit customers pay the same standing charge (‘levelisation’)
• Direct Debit customers pay £10 more per year
• Prepayment customers pay £49 (or £52 including VAT) less per year

Other changes to help energy customers

• Ban on short-term discounted tariffs (acquisition tariffs) extended for another 12 months from 1 April
• Market Stabilisation Charge ends on 1 April
• Energy suppliers have five days (instead of 15) to move customers when switching
• £30 compensation to customers if the 5-day deadline is not met

List of Cheapest Energy Suppliers In The UK

Now that you are familiar with selecting the best energy suppliers, it’s important that you are able to find the cheapest energy suppliers in the UK. In this section, let’s learn about some of the cheapest energy suppliers in the UK you can check with:

Here are the best places to find cheap gas and electricity for your home:

1. Utility Warehouse

There is one exception to the general rule that most sellers charge the price cap. Utility Warehouse offers lower energy costs than the Energy Price Guarantee the government offers. It is safe to conclude that Utility Warehouse is among the most affordable energy providers. But, if you join up for another service with them, you can save even more money on your energy bills. Broadband, mobile, and insurance are examples of this. Getting a price and comparing it with your current tariff is worth it, even if you are working with a different supplier.

2. Octopus Energy

One of the most affordable energy providers is Octopus Energy, a British renewable energy firm. It is becoming more and more well-known for producing 100% green electricity and for creating a future sustainable energy system. In order to pass on the savings to customers, the company keeps their expenses lower than those of other energy suppliers. Their reputation as the fastest energy supplier to respond to consumer inquiries stems from their commitment to providing excellent customer service. Both fixed and variable pricing are offered by Octopus Energy, and most customers believe their clear-cut pricing to be more reasonable than that of the “Big Six” energy providers. If you decide to cancel at any point in the future, Octopus Energy will not charge you any exit fees.

3. Shell Energy

With over 1.4 million UK households receiving electricity from Shell Energy, it has emerged as a popular choice. In addition to its energy offerings, the company provides broadband and smart home technology services.

One of Shell Energy’s most notable advantages is that all of its customers receive 100% renewable electricity, regardless of their chosen plan. For those who opt for the Go Further Plan, both gas and electricity are carbon-neutral.

An added benefit lies in being a member of Shell Energy’s loyalty program, Shell Go+. This program offers a range of perks, including a 10% discount on all Costa Express and Shell hot drinks, as well as a Shell fuel reward for every ten visits.

4. British Gas

British Gas offers household services and energy. It is among the most affordable energy providers and provides a variety of tariff options, including fixed tariffs, green tariffs, tariffs for electric vehicles, etc. Its fixed-rate tariff is less expensive than what the Energy Price Guarantee offers. This implies that you can rest easy knowing that your standing costs and unit rates will not change over the term of your contract. It means that your unit rate will not vary despite fluctuations in energy prices. However, there is no danger in obtaining an energy quote from them.

5. Scottish Power

Scottish Power is a favourite of many when it comes to best energy suppliers in 2024. It’s a Glasgow-based energy supplier that was founded in 1990 and is leading when it comes to renewable energy. 

As a leading energy provider, Scottish Power leverages its extensive network of wind farms across the United Kingdom to generate clean, renewable electricity, which is then supplied to households in an environmentally sustainable manner. Beyond its commitment to green energy, the company offers a comprehensive range of services tailored to meet the diverse needs of its customers. These services encompass home emergency assistance, appliance care plans, and boiler insurance and maintenance solutions.

Scottish Power has raised an incredible £35 million for Cancer Research UK through its collaboration; this shows that the company is committed to doing more than just supplying energy.

6. Electrocity

This is the greenest energy supplier in the UK. According to Stroud, Gloucestershire, Company’s clientele consists of almost 100,000 commercial and residential customers. It produces green energy from renewable energy sources like wind, power, hydroelectric, and solar. 

Electrocity has received almost 3,300 positive reviews on Trustpilot, a website well-known to  gather customer feedback. This energy supplier has an average rating of 3.9/5. It would be fascinating to watch how Electrocity changes to suit their customers’ needs as the demand for green energy increases in 2024.

7. Utilita Energy

In search of a pay-as-you-go energy provider for 2024? The first and only provider of this kind in the UK is Utilita, so there’s no need to search elsewhere. The CEO of Utilita, Bill Bullen, founded the business, which has revolutionised the energy industry by providing better service at a far more reasonable cost and undermining the power of established providers. Utilita has set itself apart from other energy providers in the UK market by providing special prices that do not include standing charges. Its customer base is 800000 people. Customers will therefore only be charged for the energy they actually use, and they won’t incur any further fees if they use none at all.

8. Outfox the Market

Outfox the Market was only established in 2017, yet it has already been named Which’s “Best Energy Supplier of 2021.” The organisation is well-known for providing affordable energy usage tariffs, and they regularly launch new deals and plans that are typically among the lowest available. Furthermore, Outfox the Market is proud to acquire all of its energy from sustainable sources.

It’s crucial to remember, though, that Outfox the Market might not always be the most economical choice. It’s important to note that Outfox the Market does not take prepayment metres from clients.

9. EDF Energy

EDF Energy is a significant energy supplier to the UK and a division of the French government-owned EDF.  Moreover, it uses wind, solar and nuclear energy to generate electricity with zero carbon emissions. Zero-carbon electricity is a basic feature for all of their fixed home energy clients. 

They are dedicated to employing renewable technologies and making investments in low-carbon energy. According to EDF, consumers are largely satisfied with the accuracy and clarity of their invoices. This will be among the most affordable energy providers if sustainability is important to you.

Tips For Finding The Cheapest Energy Supplier In The UK

When it comes to finding the cheapest energy supplier in the UK it’s necessary you have a look at the tips we’ve mentioned. By leveraging online comparison tools and keeping an eye out for special deals, you can pave the way towards substantial savings on your energy bills.

• Compare the rates charged by different energy providers to find the cheapest energy supplier in the UK. Did you know – 9 out of 10 of Octopus Energy clients pay less. 
• Evaluate the options that offer the most savings based on your energy consumption to identify the cheapest provider.
• Take advantage of student discounts and offers provided by UK energy suppliers to secure the cheapest gas and electricity supplier.
• Opt for personalised plans designed specifically for your needs.
• Adopt energy-efficient behaviours to reduce your energy costs.
• Consider single or dual fuel options, as they can lead to the cheapest energy supplier in the UK.
• Explore government programmes and incentives made specifically for students.
• Most importantly, regularly review and compare energy suppliers to ensure you are getting the best deal for your circumstances.

How To Choose Best Energy Supplier

Let us see some of the main reasons you should consider while choosing the best energy suppliers UK. 

1. Green energy

If you want to make a positive impact on the environment and are planning to switch your energy supplier, then a green energy option may be the best. As green energy is generated through renewable sources like biogas, solar, and wind, you can save a lot of money! Around 40% of Ireland’s electricity is generated from renewable resources. This figure is set to increase in the future.

2. Customer service

When selecting a new energy provider, it’s best to conduct due diligence, which includes looking into their reputation for providing excellent customer service. Luckily, the Commission for Regulation of Utilities (CRU) website makes it simple to assess how well an energy business provides customer service. Each year, the CRU makes available to the public statistics on the number of complaints that each provider has received. These details are included in their Customer Care Team Annual Report. This information might aid in making an informed choice when selecting a new energy supplier.

3. Single or dual-fuel

It’s crucial to take into account if a possible energy provider provides both gas and electricity (a dual fuel arrangement) or only one of the two (a single fuel arrangement). If you would rather acquire all of your energy from one provider, make sure they offer both; however, many energy suppliers do not. Dealing with a single supplier is an additional convenience when choosing dual fuel, which is a crucial consideration for numerous houses. 

Make it a point to remember that you can also swap suppliers for your electricity and gas in order to take advantage of two different deals. It’s important to consider the pros and cons of each choice in order to determine which is ideal for your home.

4. Online services

Before making the move, it’s crucial to investigate the online services provided by your prospective energy provider. Digital bills, an easy-to-use smartphone app, and online account access are all useful resources for controlling your energy use.

It’s a good idea to read online reviews of a specific energy supplier’s mobile app on stores like the Apple and Android app stores if you’re considering downloading it. This might help you make an informed choice by providing you with a clearer understanding of the functionality and user experience of the app.

Top UK Energy Suppliers & Their Ratings 2024

Given below is an overview of the top energy suppliers in the UK. Go through for overall customer score to figure out the savings and the company’s standing:

Source : which.co.uk

When To Switch Energy Supplier?

There are several situations when you may want to consider switching energy suppliers:

• Increased prices or poor service from your current provider
• When introductory discounts/facilities for new customers end, leaving you with higher rates
• Expected sudden increase in prices due to economic shifts (when one supplier raises rates, others usually follow)

The most suitable time to switch is before your current deal ends. 49 days before the contract ends, the switching window opens and you can change providers without exit fees. This can be a good time to find a cheaper option.

If you don’t have a fixed billing plan, your tariff may spike over the winter when energy usage is higher. It’s advisable to compare prices before winter starts. Some providers don’t let you close accounts with outstanding debt. In such cases, you’ll need to pay off the loan amount first before switching.

Certain life events present good opportunities to re-evaluate needs and change suppliers:

• Moving residences (different number of rooms, appliances, heating systems affecting usage)
• Lifestyle changes like retirement, working from home, or family members moving out
• Non-monetary reasons like choosing greener energy options or dissatisfaction with current service can also prompt a switch.

However, avoid switching if you’ll incur penalty fees that negate potential savings, unless non-monetary factors are the priority. Don’t switch hastily before fully exploring options.

Why Switch Gas & Energy Suppliers

Are you trying to find the best energy provider to reduce your costs? It’s critical to know what to look for when comparing energy suppliers because among the most frequent reasons consumers switch suppliers are excessive gas and electricity rates and subpar customer service.

The most frequent explanation for switching is that energy costs are too high. Switching suppliers may occur if your contract is about to expire, the cost of your energy supplier increases, or if you use more gas and electricity than you anticipated. To save as much money as possible, make sure you are receiving the greatest bargain available by comparing offers and monitoring rates.

Is Switching Provider A Complex Process?

The process of switching your energy supplier is relatively simple and comparable to switching your household energy supplier. However, it’s important to consider that the switch’s complexity may depend on your specific needs. But don’t worry, as your energy supply will not be affected during the transition. The transition process will be handled by your new and old suppliers, and won’t impact your energy supply.

Process Of Switching Energy Suppliers In The UK: 

When you have chosen a supplier and tariff you want to move to, you will need to give the supplier information that is on your energy bill. They will need:

• Postcode
• Name of current energy supplier or contract
• Name of the current tariff
• Amount you pay for your energy per unit, this is shown in kilowatt-hours (kWh) on your bill
• Amount of energy you use each year

Your new energy supplier will contact you and tell you when they will switch your energy supply over to them. For households, this can take up to five working days.

If your supplier does not complete the work within this time, you can get compensation for problems switching energy suppliers. Businesses cannot get compensation. New domestic contracts can be cancelled within 14 days if you change your mind, but most business energy contracts cannot.

Points Of Consideration When Switching Energy

If you’re thinking about changing energy providers, it’s critical to understand what costs you might have to pay if your current provider is still bound by the contract. The following pointers may help you further understand: 

Do consider the length of the deal.

Most deals are for 12 or 24 months. During this time the price cap could rise or fall depending on market conditions, so consider how long you would like to stay locked in for.

Do stay informed. 

Most deals are for 12 or 24 months. During this time the price cap could rise or fall depending on market conditions, so consider how long you would like to stay locked in for.

Don’t get a deal you can’t afford.

Make sure you can afford the deal you choose and don’t rush into one that you’ll struggle to pay for.

Don’t just look at the direct debit amount.

The price you pay through Direct Debit each month is usually based on your estimated energy usage over a year. This may not be the actual cost. Make sure you look at the unit rate and standing charge to work out how much you will be charged for your energy usage. You can also see how it differs from what you’re paying now.

How often do energy prices change?

Energy prices are constantly changing due to market supply, demand and wholesale costs. By choosing a fixed rate tariff, you can know your unit rates for a set period of time. The new Energy Price Guarantee will cap costs for typical households at £2,500 annually until June 2024, with a new cap announcement in May and changes effective from July 1, 2024.

Are Energy Prices Going Up Or Down?

While bills are the lowest they’ve been in the past two years, they’re still almost double pre-energy crisis levels. And they’re unlikely to return to pre-pandemic levels before the end of the decade. Energy prices can also fluctuate depending on supply and demand.

Every three months, Ofcom, the UK’s communications regulator, sets a new energy price cap. The energy price cap prevents providers from overcharging their customers on standard variable rates. In essence, the Energy Price Cap is influenced by the price of power on the open market and an increase in the cap signifies a rise in energy prices. You can see the latest predictions below: 

Conclusion

Getting cheap energy deals is not very difficult once you have a clear idea of what is it that you are looking for. With the energy prices rising, it is better to choose the cheapest electricity provider when you are starting as it will be better for you in the long run. Whether you are looking for green electricity, sustainable energy, or renewable energy there are only a handful of cheapest energy suppliers and you need to decide between the top four or five. 

Other ways of saving on energy bills are by going paperless, ensuring you are not paying for the previous tenant, choosing a dual fuel tariff, opting for fixed tariffs, etc. Saving energy costs is essential to maintain your expenses; hence choose your supplier wisely.

FAQs

1. Who is the cheapest energy supplier in UK in 2024?

Square 1 is the cheapest SVT provider, with only £151.50 pounds per month.

2. Is Octopus Energy still the cheapest energy supplier?

You’ll pay a fair price for your energy with 100% green energy. It might not be the lowest price available; rather, it’s about average. There is no way to quantify that.

3. Is it better to have a fixed or variable energy rate in 2024?

Fixed tariffs can be more expensive, and they sometimes have high exit costs and other binding terms. Variable tariffs provide you greater freedom, but you must regularly monitor energy rates and look for alternative offers if your supplier announces a rise in energy prices.

4. Is it worth getting a fixed energy tariff?

The energy market’s conditions ultimately determine fixed-rate tariffs; if wholesale prices are high, fixed deals will be less alluring. Generally speaking, though, a fixed-rate tariff will be more cost-effective than a variable-rate one if market conditions are favourable and you shop around.

5. Will my gas and electricity be interrupted if I switch?

Switching energy suppliers will not affect your gas and electricity supply. Your energy supply will continue as usual, and only the billing process will change to the new supplier.

6. Which is the cheapest energy supplier in London?

Outfox The Market, EDF Energy, and Octopus Energy are some of the best and cheapest energy suppliers in London.

7. How long does it take to switch?

The Energy Switch Guarantee (ESG) ensures that suppliers complete a switch within five days. 

8. What is a standing charge?

Energy companies typically impose a standing charge to cover the costs of supplying electricity and gas, including maintenance, to households. This fixed charge is either billed monthly or daily and added to usage costs, resulting in your total energy bill. 

9. What is green energy?

Green energy, sourced from solar, wind, hydro, and wave power, has significantly lower carbon emissions compared to fossil fuels, making it an eco-friendly alternative. 

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