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Compare tariffs by calculating your home’s expected annual bill from its actual electricity use—not by choosing the lowest advertised unit rate. Include the standing charge, every applicable rate band, your day/night or half-hourly usage pattern, meter and payment requirements, and contract terms. High use makes each per-kWh difference matter more, but a tariff with cheap overnight power only helps if enough of your consumption falls in its cheaper hours.
Start with your actual annual use
Gather 12 months of electricity bills or account data and note your total kWh. A typical-household estimate can mislead: the right tariff depends on your home’s consumption and when you use electricity. If your supplier provides half-hourly data, download it. The pattern can show whether substantial use occurs during evening peaks or could realistically be shifted.
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Also record your region, payment method, meter type, and whether your meter has separate day and night registers. These details matter because published rates can vary by region and payment method, and some tariffs require a particular meter.
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Calculate the annual cost on the same basis
For each offer, estimate a full year using the tariff’s actual terms:
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Annual cost = (daily standing charge × 365) + sum of (kWh in each rate band × that band’s unit rate) + applicable feesFor a single-rate tariff, multiply all annual kWh by its one unit rate. For a multi-rate tariff, calculate day and night consumption separately. Add any relevant fees, then check whether rates can change, how long the contract lasts, and whether leaving early carries a fee.
Ofgem explains that the price cap limits rates for covered default tariffs, not the total a household can pay: “The more energy you use, the higher your bill will be.” The cap does not protect agreed fixed tariffs. Its published rates also vary by region and payment method, so a national average is context rather than a personal quote. Ofgem’s explanation of the price cap and standing charges sets out the distinction.
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Compare tariff types against your household’s pattern
| Tariff type | How charges work | How to compare | High-use risk |
|---|---|---|---|
| Single-rate standard variable or fixed | One unit rate at all times, plus a daily standing charge. | Annual kWh × unit rate + 365 × standing charge; include fees and contract terms. | A modest unit-rate difference compounds across a large annual kWh total. Fixed and standard variable tariffs also differ in exposure to price changes; fixed offers are outside the price cap. |
| Economy 7 or another static multi-rate tariff | Different rates apply in defined peak and off-peak periods. Economy 7 commonly offers seven cheaper overnight hours. | Apply actual day and night kWh to their respective rates, then add the standing charge. | A high daytime rate can outweigh night-rate savings if little consumption falls in the cheaper window. |
| Smart static time-of-use | Rates apply in regular time blocks, potentially with seasonal variation. | Use half-hourly consumption and the published time bands; model only loads you can shift. | Peak periods may be costly, and household routines may limit flexibility. A smart meter is required. |
| Dynamic time-of-use | Rates and often time periods change frequently, reflecting near-real-time wholesale prices. | Compare interval use with rate history as an indicator, while accounting for the possibility that future prices differ. | Prices are more variable and the tariff rewards flexibility; historical comparisons do not guarantee future costs. |
Decide whether a time-of-use tariff fits
A time-of-use tariff is worth considering when you can move a meaningful share of consumption into its cheaper periods. Potentially flexible loads include EV charging, a home battery, storage heating, and hot-water heating. The existence of one of these loads does not guarantee savings: check the tariff’s exact hours and rates, and whether your equipment and routine let you use those hours.
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Model both the electricity you can shift and the consumption that must remain in peak periods. Energy Saving Trust says a smart meter is needed to sign up for a smart time-of-use tariff, and cautions that such a tariff is unlikely to work if you cannot move use outside peak times. Its guidance explains how smart time-of-use tariffs work.
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For a static tariff, compare the regular time blocks with your actual usage. For a dynamic tariff, rates and periods may change frequently, so using past interval data can help you assess fit but cannot tell you exactly what future bills will be. Check whether the tariff is static or dynamic before relying on a low advertised rate.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Check standing charges and the bill context
The standing charge applies every day, including days when you use no electricity. Ofgem says it helps cover costs such as maintaining the supply network, meter readings, and government social and environmental schemes. For a high-consumption home, the unit rate is especially consequential, but the standing charge still belongs in the annual calculation.
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As a dated Great Britain reference, Ofgem’s average for Direct Debit electricity on a standard variable tariff in England, Scotland and Wales was 26.32p per kWh and 54.83p per day for 1 October–31 December 2026. These are national averages, not a quote for an individual home; rates vary by region and payment method. Ofgem also notes that electricity had no VAT from 1 October 2026 to 31 March 2027, so costs cannot be directly compared with earlier periods on an unchanged tax basis. Check the current figures and relevant regional rates on Ofgem’s price-cap page.
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Verify eligibility and contract terms before switching
- Confirm the time bands, including any seasonal changes, and whether the rates are fixed blocks or dynamic.
- Check meter requirements and whether your existing meter can register the required usage.
- Confirm eligibility, payment method, contract duration, and any exit fee.
- Check the offer against your own region and include every rate band in the cost calculation.
- Do not assume a supplier offers a particular tariff in your area or that you can shift use simply because an overnight rate is advertised.
Supplier availability, exact hours, eligibility, and exit fees differ by offer. Energy Saving Trust’s time-of-use tariff guidance outlines the practical factors to investigate, but the supplier’s current tariff terms determine the rates and conditions that apply to you.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
