Tariffs

Choosing the right energy tariff is one of the most effective ways to lower your energy bills and reduce your carbon footprint. As the UK grid moves towards renewable energy, suppliers are offering increasingly innovative tariffs that reward you for using electricity when it is abundant, clean, and cheap.

If you have installed heat pumps, solar panels, or an electric vehicle, a standard “flat-rate” tariff is likely costing you significantly more than a modern “smart” tariff.

Types of modern energy tariffs

1. Time-of-Use (TOU) Tariffs

These tariffs have different prices at different times of the day. They typically offer very cheap rates overnight (e.g., 5p-10p per kWh) when demand is low, and higher rates during the evening peak (e.g., 4pm-7pm).

• Best for: EV owners and those with home batteries.

2. Dynamic / Agile Tariffs

The price of electricity changes every half hour based on the “wholesale” market price. When it’s very windy or sunny, prices can drop to near zero or even become negative (meaning you get paid to use electricity).

• Best for: Tech-savvy users with smart controls and automated systems.

3. Export Tariffs (SEG)

If you generate your own electricity via solar panels, these tariffs pay you for every unit you send back to the grid.

• Best for: Solar PV owners.

4. Tracker Tariffs

The price follows the daily wholesale market rate but is fixed for that entire day. This offers a middle ground between a standard fixed tariff and a half-hourly dynamic one.

Important: To access most of these modern tariffs, you MUST have a functional smart meter that can provide half-hourly readings to your supplier.

Why your tariff matters

• Financial Savings: Shifting just 30% of your usage to off-peak times can lower your annual bill by hundreds of pounds.
• Carbon Reduction: Lower prices usually coincide with high renewable generation on the grid. By using electricity when it’s cheap, you are using the cleanest power available.
• Grid Support: By avoiding usage during peak times, you help reduce the need for fossil-fuel “peaker” plants and lower the risk of grid overloads.

Tools

• Tariff comparison — Compare the best smart tariffs for your specific technology.
• Carbon tracker — See the real-time carbon intensity of your current energy usage.

Guides

• Time of use tariffs — Understanding off-peak windows and savings.
• Dynamic pricing — How to take advantage of wholesale price fluctuations.
• Export tariffs — Getting paid for your excess solar generation.
• Grid carbon intensity — Why “when” you use electricity is as important as “how much”.
• Switching providers — How to move to a smart energy supplier.
• Green energy certificates — Understanding REGOs and “100% renewable” claims.
• Community energy schemes — Local energy generation and sharing.
• Regulatory environment — Ofgem, price caps, and consumer protections.