How to Compare Energy Deals Without Getting Confused
THE QUICK ANSWER
To compare energy deals properly, use your annual gas and electricity consumption where possible, compare the total estimated yearly cost rather than the monthly direct debit alone, check whether the tariff is fixed or variable, review standing charges and unit rates, and look for exit fees or special conditions. The cheapest-looking deal is not always the best fit for your home.
Energy comparison does not need to be complicated
Energy tariffs can look confusing because suppliers present several numbers at once: estimated annual cost, monthly direct debit, unit rates, standing charges, contract length and possible exit fees. The good news is that you do not need to become an energy-market expert to make a sensible choice.
A useful comparison answers three questions: what could the tariff cost for your actual usage, how could that price change, and what commitments or restrictions come with it? Once you focus on those points, it becomes much easier to separate a genuinely suitable deal from one that simply has an attractive headline.
This guide explains the information to collect, the figures to compare and the checks to make before you switch.
Before you compare: collect the right information
| Information | Why it matters |
|---|---|
| Your postcode and address | Energy prices and available tariffs can vary by region. |
| Your current supplier and tariff | This helps establish what you are comparing against. |
| Your annual electricity and gas consumption | Look for figures shown in kilowatt-hours (kWh). Using actual consumption is usually more accurate than choosing a broad household estimate. |
| How you pay | For example, monthly direct debit, payment on receipt of bill or prepayment. |
| Your meter type | This might include a standard meter, prepayment meter, Economy 7 or another time-of-use arrangement. |
| Your tariff end date and exit fee | A fixed tariff may charge you for leaving early, although terms vary. |
The five figures that matter most
Estimated annual cost
This is usually the simplest starting point because it combines the tariff's unit rates, standing charges and your estimated consumption. Compare annual costs on the same usage assumptions. A low monthly direct debit is not proof that the tariff is cheaper.
Unit rates
The unit rate is the amount charged for each kilowatt-hour of gas or electricity you use. A household that uses more energy will be affected more by the unit rate than a household with very low consumption.
Standing charges
The standing charge is a daily amount payable even when little or no energy is used. Lower-use households should pay particular attention to standing charges because they make up a larger proportion of the total bill.
Contract length and price type
A fixed tariff normally fixes the unit rates and standing charges for an agreed period; it does not fix your total bill. Ofgem's price cap limits the unit rates and standing charges suppliers can charge customers on standard variable tariffs, but it is not a cap on the total bill.
Exit fees and other conditions
Check whether you would pay a fee for leaving a fixed deal early, whether the tariff requires a smart meter or particular payment method, and whether any reward or discount is temporary.
BillGoose Tip
Do not rank tariffs by one number in isolation. Compare the estimated annual cost, then use the unit rates, standing charges, contract terms and service features to decide whether the deal suits you.
Fixed or variable: which should you choose?
| Question | A fixed tariff may suit you if... | A variable tariff may suit you if... |
|---|---|---|
| Budget certainty | You prefer more certainty about the rates for a set period. | You can accept rates changing. |
| Flexibility | You are comfortable committing, subject to the tariff terms. | You want fewer barriers to changing tariff. |
| Market movement | You value protection from potential rate increases. | You are willing to accept increases in return for flexibility or possible reductions. |
How to compare energy deals step by step
Enter your postcode
This identifies your region and available supply address.
Choose your address
Select the correct property so the comparison uses the right supply information.
Add your current tariff and usage
Use annual kWh figures when available. Otherwise provide the best estimate you can.
Review the results consistently
Keep the same usage and payment assumptions across every tariff.
Filter for what matters
For example: fixed or variable, tariff length, green energy claims, payment method, meter compatibility and exit fees.
Open the tariff details
Read the key terms, not only the headline saving.
Choose and complete the switch
Provide the required information and keep a copy of the confirmation.
What happens when you switch?
Your energy supply should not be interrupted. The gas and electricity continue through the same pipes, wires and meters; the company that bills you changes. Ofgem says a supplier switch should take up to five working days, although you can ask for a later date. Domestic customers also normally receive a 14-day cooling-off period.
Your old supplier should produce a final bill. Take or submit an accurate meter reading when requested, keep your confirmation emails and check any credit balance is returned. If you use a smart meter, check whether it will continue operating in smart mode with the new tariff or supplier.
Common energy comparison mistakes
- Comparing the monthly direct debit instead of the total estimated cost.
- Using different consumption figures for different tariffs.
- Ignoring standing charges because the unit rate looks low.
- Assuming a fixed tariff fixes the total bill rather than the rates.
- Forgetting to check an existing exit fee.
- Choosing a tariff that is incompatible with the meter or payment method.
- Treating an estimated saving as guaranteed.
- Ignoring customer service, billing and support arrangements.
When switching might need extra care
Some circumstances require additional checks. You might still be able to switch if you owe money, but the rules depend on factors such as when the debt arose and whether you use a prepayment meter. Tenants who pay the supplier directly can generally choose their own supplier or tariff. If your existing supplier has failed, Ofgem advises customers to wait while a new supplier is appointed rather than trying to switch immediately.
Seek impartial help if you are struggling to pay, have been switched without permission, or are unsure how a tariff affects a vulnerable household member.
Ready to see whether you could get a better deal?
Start with your postcode, add your current tariff and annual usage if you have them, then compare the estimated yearly cost and full terms. BillGoose is designed to make the important differences clear so you can decide whether switching is right for your household.
Compare with Confidence
Use BillGoose to compare energy deals by estimated annual cost, unit rates, standing charges, contract length and exit fees. The aim is to find a tariff that suits your household, not just the cheapest headline figure.
