Cheapest Gas Tariff UK - How to Find and Switch

The UK is a competitive energy market, with dozens of energy suppliers offering various gas tariffs. Locating the cheapest gas tariff in the UK can be challenging, as a lot of options exist. However, finding the best gas tariff for your needs is possible with the correct information and research.

In this article, I will look at some key factors to consider when choosing the cheapest gas tariff in the UK, including the different types of tariffs available, the benefits of switching to a new supplier, and how to compare prices and uncover the best deal. I will also give valuable advice and tips to help you save money on gas bills.

Understanding Gas Tariffs

A gas tariff is the price you pay for your gas supply. Your energy provider determines the price and can change due to factors such as your tariff, location, and wholesale gas rates.

Gas tariff structure

Gas tariffs comprise two main components: the price per unit and the standing charge.

• Price per unit: The price per unit is the wage you pay for every unit of gas you utilise. The price per unit is usually given in pence per kilowatt hour (kWh).

• Standing charge: The standing charge is an unchangeable charge you pay nevertheless of how much gas you utilise. The standing charge is usually given in pounds per year.   

Factors to consider when choosing the cheapest gas tariff in the UK

These are some factors to take into account when choosing the economical gas tariff in the UK:

Type of Tariff

Gas tariffs in the UK come in different types. Fixed-rate tariffs offer a stable price for a period but may have exit fees if you switch before the term ends. Variable-rate tariffs can fluctuate with market conditions, offering flexibility but potentially resulting in higher costs if energy prices rise. Green energy tariffs are environmentally conscious options that use renewable energy sources.

Contract Length

The duration of your energy contract matters. Longer-term contracts can provide price stability but might have higher exit fees if you want to switch early. Shorter-term contracts offer flexibility but may have variable rates.

Exit Fees

Be aware of any charges associated with leaving your current energy tariff or supplier, as these fees can impact your potential savings when switching.

Payment Method

Some tariffs offer discounts for specific payment methods like direct debit. Choose the payment procedure that best compliments your needs to maximise your potential savings.

Energy Usage

Analyse your energy consumption to find a tariff that matches your needs. Some tariffs are designed for high-energy users, while others are more suitable for low-energy users.

Customer Service

Research the reputation of the energy supplier for customer service. Reading reviews and checking their responsiveness can ensure a positive experience.

Comparison Tools

Use online comparison websites and tools to easily compare multiple gas tariffs from different suppliers, helping you make an informed decision.

Considering these factors, you can find the right gas plan in the UK that matches what you need and like. This way, you can rescue money on your energy bills.

Gas prices per kWh- Explained

Gas prices are measured in kilowatt-hours (kWh). Every gas supplier has a different price for each unit of gas you use. Besides that, your gas bill will also have a daily charge, called a standing charge, that you pay no matter how much or how little gas you use.

The average cost of gas per kWh in the UK is 6.89p as of 31 December 2023. However, the price can vary as per your chosen supplier and tariff.

Several factors, including global production levels, supply chain costs, and weather conditions, set gas prices. Gas companies often buy gas way before they need it, sometimes months or years earlier. They do this to ensure they don't have to pay more if gas prices increase later.

To ensure you are receiving the best possible price for your gas, it is essential to match prices with the different suppliers regularly.

How to Compare Gas Prices and Find the Best Deal?

Here is a step-by-step explanation of how to compare gas prices:

Understand Your Current Situation

Before you begin comparing gas prices, you must clearly understand your current gas usage, tariff, and billing details. Gather your recent gas bills or statements from your current supplier. This will include information about your kilowatt-hours (kWh) consumption and the rates you're currently paying.

Choose a Comparison Website

You can use a reliable price comparison website like Uswitch to compare gas prices effectively. These websites provide a platform to input your information and get a list of available gas deals from various suppliers.

Run Energy Comparisons Regularly

It's recommended to perform energy comparisons regularly, ideally at least once a year. Energy prices can change, and new deals may become available, so staying up-to-date ensures you're on the best deal for your needs.

Enter Your Annual Consumption

To get the most accurate results, enter your annual gas consumption in kilowatt-hours (kWh) when prompted on the comparison website. You can see this information if you have an annual statement from your current supplier. However, if you don't have this statement, you can still estimate your consumption based on your current spending.

Review Different Plan Types

When you compare gas plans on websites like Uswitch, you'll typically be presented with various plan types. These include fixed plans, variable plans, and others. Take the time to understand the differences:

• Fixed Plans: These guarantee that your gas rates will remain at a set price for a specified period, offering price stability. This can be a suitable pick if you prefer predictable bills.

• Variable Plans: Prices can fluctuate based on market conditions with these plans, offering flexibility. However, your costs might rise if energy prices increase significantly.

Consider Your Needs

Think about your needs and preferences. For instance, a fixed plan might be more suitable if you value stability and want to avoid unexpected price hikes. On the other hand, if you're comfortable with price fluctuations and want to take advantage of potential savings during market lows, a variable plan could be a good choice.

Get a List of Gas Suppliers

After you've entered your information and preferences, the comparison website will generate a list of gas suppliers and the deals they offer. These results will show how much you could save by switching to a distinct tariff or supplier.

Review Additional Benefits

Don't just focus on gas prices alone. A few suppliers provide extra advantages such as good customer service, green energy options, or loyalty rewards. Consider these extras when making your decision.

Make an Informed Decision

Based on the information provided by the comparison website, choose the gas plan that best suits your needs and budget. Just stick to the guidelines on the website to start the switch.

By following these steps, you can compare gas prices effectively, ensuring that you find the best gas deal for your specific circumstances and potentially save money on your heating bills.

Comparing Gas Tariffs: UK's Most Affordable Options

Here is a table of all the gas tariffs available in the UK, including fixed, variable, Economy 7, green, and prepayment metre tariffs, with data for prepayment, including the exit fee:

Note: Prices are based on a typical household with a dual fuel tariff, paying by direct debit. Exit fees may apply if you leave your tariff before the end of the contract term. All prices may vary depending on your location and usage.

Which tariff is cheapest for you?

Now, let's analyse which tariff might be the cheapest based on typical considerations:

Fixed vs. Variable Tariffs

Fixed Tariff: This type of tariff offers a consistent unit rate and standing charge for a specified duration, typically 12 to 36 months. It provides price stability, making it straightforward to budget for energy costs. However, fixed tariffs often come with an exit fee, which can be substantial if you switch providers or tariffs before the contract ends.

Variable Tariff: Variable tariffs, on the other hand, have unit rates and standing charges that can change periodically, often in response to market fluctuations. They give flexibility since there's no exit fee. If gas prices drop, you can benefit from lower rates. However, the lack of price predictability means your bills could increase if gas prices rise.

Consideration: A fixed tariff may be suitable if you value stability and want to avoid sudden price hikes. However, a variable tariff might be more appealing if you want the freedom to switch without penalty and are comfortable with some price variability.

Economy 7 Tariff

The Economy 7 tariff is designed for households with specific usage patterns, particularly those with storage heating systems or electric vehicles charging at night. It offers a higher rate during peak hours (daytime) and a significantly lower unit rate during off-peak hours (usually at night). The idea is to encourage users to shift energy-intensive activities to the cheaper nighttime hours.

Consideration: To benefit from an Economy 7 tariff, you must have a lifestyle that aligns with nighttime usage, such as running electric heaters or appliances overnight. This tariff may not be cost-effective if you predominantly use gas during the daytime.

Green Tariff:

The Green Tariff supports renewable energy generation by matching typical fixed and variable tariffs' unit rates and standing charges. It only sometimes offers cost savings over the standard options. Instead, backing renewable energy projects allows customers to contribute to a more feasible energy future.

Consideration: Choosing a green tariff is more about environmental values and supporting clean energy generation than seeking significant cost savings. If you prioritise sustainability, this tariff aligns with those values.

Prepayment Metre Tariff

Prepayment metre tariffs are typically more expensive than standard credit metre tariffs. They have higher unit rates and standing charges, making them less cost-effective for most households. While they don't come with exit fees, the higher overall cost can be a drawback.

Consideration: Households with budgeting constraints or payment difficulties often use prepayment metres. If you can switch to a standard credit metre, you might discover more affordable choices are accessible to you.

So, choosing the cheapest tariff depends on your circumstances, usage patterns, and priorities. It's important to assess your individual preferences and needs before deciding.

Switching gas suppliers for cheaper energy

Switching gas suppliers is a quick and easy way to save money on your energy bills. Now, talk about switching to a different energy supplier and what you should know about the process.

What information do I require to switch gas suppliers?

To switch gas suppliers in the UK, you will require these information:

• Your name and address

• Your current gas supplier

• Your metre number

• Your annual gas consumption (in kWh)

• Your bank details for direct debit payments (optional)

You can find your metre number on your gas bill. Your annual gas consumption is usually printed on your bill, but you can calculate it by adding up the metre readings from your last 12 bills.

How can you switch to a cheaper gas supplier?

Here's how to do it:

• Compare gas tariffs from different suppliers using a price comparison website like Uswitch.

• Choose the deal to switch to, and Uswitch will do the rest.

• Uswitch will handle all the paperwork and consult your old supplier to inform them you're switching.

• Your new supplier will use the same metres and supply lines as your old supplier, so your gas supply won't be interrupted.

• The only task you have to do is to read your gas metre and share that reading with both your current and new gas providers.

Does switching to a new gas supply impact your current supply?

No, when you switch gas suppliers, the gas that comes to your home through the pipes doesn't change. How you pay for it and how you're billed for it does change.

When is the ideal time of year to consider switching energy suppliers?

The ideal time to switch energy suppliers is around autumn, before winter. This is because your gas and electricity usage is likely higher in the winter, so you want to ensure you're on the cheapest deal possible.

How long does switching to a new gas supplier usually take?

It takes only some minutes to weigh up gas tariffs and choose your new provider with Uswitch. After that, the switching procedure can take up to three weeks, including a two-week cooling-off timespan.

What are a few of the benefits of switching gas suppliers?

Benefits of switching gas suppliers: 

• Save money on your energy bills.

• Get a better deal on your gas tariff.

• Take advantage of exclusive offers and discounts.

• Improve your customer service experience.

Switching gas suppliers is a smart way to save money on energy bills easily and quickly. With Uswitch, you can compare tariffs from different suppliers and switch to a cheaper deal in minutes.

Conclusion 

You can save money on your gas bills in the UK by choosing the right gas tariff. There are many types of tariffs, like fixed and variable ones. Fixed tariffs offer stable prices for a set time, while variable ones can change. The Economy 7 tariff has lower rates at night and might be good if you use gas during those hours.

If you are conscious about the environment, there are green tariffs. But you must know your usage patterns and preferences to choose a good one. Also, some tariffs have exit fees if you switch early.

To find the cheapest gas tariff, you can use comparison websites. They'll help you see different options from various suppliers. Remember to check your current situation, enter your gas usage, and consider factors like payment method and contract length. You can save money on your energy bills by switching to a cheaper tariff.

FAQs 

What is the cheapest gas tariff in the UK?

The cheapest gas tariff in the UK will depend on your circumstances, such as your location, usage, and payment method. However, you can compare tariffs from different suppliers using an energy price comparison website to find the best deal.

What are the different types of gas tariffs available?

The main types of gas tariffs available in the UK are fixed, variable, and Economy 7. Fixed tariffs offer price stability for a set period, while variable tariffs can fluctuate with the market. Economy 7 tariffs offer lower rates during off-peak hours, like at night.

Which gas tariff is right for me?

Your best gas tariff will depend on your needs and preferences. A fixed tariff may be the best option if you want price stability. A variable tariff may be better if you are comfortable with some price variability and want the flexibility to switch providers quickly. If you have a lifestyle that aligns with nighttime usage, an Economy 7 tariff may be cost-effective.

How do I switch gas tariffs?

Switching gas tariffs is a relatively straightforward process. You can switch over the phone, online, or by post. To switch, you must give your new supplier your current supplier's name and account number. The new supplier will then contact your old supplier to set out the switch.

What happens if I am on a prepayment metre?

You may have fewer tariff options if you are on a prepayment metre. However, you can still compare tariffs from different suppliers and switch if you find a better deal. You may need to pay a closing metre fee when switching to a new tariff.