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Tariff switching and smart meters

Understand energy tariffs, when to switch suppliers and the many benefits of smart meters.

When it comes to choosing an energy tariff or switching supplier, we know it can be overwhelming and confusing. The energy crisis and the cost of living situation have only made this worse, with many smaller suppliers going bust and bills going up. 

We’ve tried to make it as simple as possible in this guide, covering:

  • energy tariffs
  • simple ways to reduce your bills
  • current advice on switching suppliers
  • what to do if your supplier goes out of business
  • smart meters

We also have advice on how to understand your energy bill, which can be a good place to start. 

Types of energy tariffs

There are four main types of energy tariffs offered by energy suppliers:

  • This is often an energy supplier’s default tariff. These rates offer flexibility, as you’re not tied into a contract with a fixed end date, and you won’t be charged exit fees if you change supplier. 

  • Under fixed rate energy tariffs, you pay a defined amount for each unit of energy until the end date specified on your contract. Fixed rates often last for one year, but you might also find two or even five-year fixed rate tariffs. 

  • This type of tariff is where you get gas and electricity from the same supplier. Energy suppliers often offer a reduced rate for dual fuel customer. It can often be easier to deal with just one company for both your gas and electricity. 

  • Many suppliers offer green tariffs, which are a way to support renewable energy. If your energy supplier offers a green tariff, they either:

    • match your usage with renewable energy generation
    • contribute towards an environmental scheme on your behalf

    However, not all green tariffs are 100% renewable, and some ‘green’ tariffs aren’t green at all. Your energy supplier should be able to tell you:

    • what energy sources are included in your energy mix
    • what percentage of your supply is from renewables

Simple steps to reduce your bills

Whatever tariff you’re on, there are some quick and simple steps you can take to reduce your energy bills without switching tariff or supplier:

  • Most suppliers offer a discount for paying by direct debit instead of cash or cheque. You might also be offered a discount for paying quarterly instead of monthly. 

  • You could also get a discount from your supplier for getting your energy bills online. When your bill is ready to view, you’ll get a notification from your supplier by text or email. 

  • If you’re struggling to pay your bills, get in touch with your supplier. They may be able to move you to a cheaper tariff or advise you of any support available.

    If you owe your supplier money, contact them as soon as possible. They’re legally required to set you up with a payment plan you can afford. 

  • Being aware of how much electricity and heating you’re using can help use less and save on your energy bills. Smart meters can also help with this. 

What do I do if my energy supplier goes bust? 

If your energy supplier goes bust, you don’t need to do anything. You’ll still get your gas and electricity in your home as normal. Ofgem, which regulates energy in the UK, will move your account to a new supplier. They’ll usually let you know which one this is within a few days. 

You should then wait for your new supplier to contact you. If you haven’t heard from them within two weeks, we recommend getting in touch. You can check this list to see if your supplier has gone bust, and to see who your new supplier is.

Smart meters 

Smart meters automatically measure how much gas and electricity you’re using at home, so you don’t have to. 

The meter itself uses a remote network to automatically send your meter readings to your supplier. Smart meters also come with an in-home display screen, which shows you:

  • how much energy you’re using
  • when you’re using it
  • how much it costs 

All households in the UK will be offered a smart meter installation at no upfront cost. If you don’t have a smart meter but want one, contact your energy supplier. They should be able to book an installation appointment for you. 

What are the benefits of smart meters? 

Smart meters accurately measure how much energy you use. This means you don’t have to remember to submit regular meter readings. Instead, you should always get accurate gas and electricity bills from your energy supplier. 

They send your meter readings directly to your energy supplier, so you’ll only ever pay for exactly what you use, rather than using an estimate. For more information on how estimated bills work, see our guide on understanding your energy bill.

A smart meter can help you reduce how much energy you use at home. When you can see and understand how you’re using energy – and how much of it you’re using – you’re better able to manage it. 

Smart meters can also let you take advantage of advanced time of use tariffs. This is where it costs less to use energy at certain times of day, usually outside of peak hours in the morning and evening. 

Get more energy saving advice

If you need more detailed energy advice and support, call our advice team free on 0808 175 9345. Or request a call back using our contact form.

And if you’re struggling with your energy bills, take a look at what in-home support we offer.