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The UK's Cheapest Electricity Supplier in 2021

customer found cheap tariff

With around 60 energy providers operating in the UK at the moment, finding the cheapest electricity supplier might seem like a daunting task. However, with this guide you’ll quickly be on your way to choosing the right electricity tariff for your household.

Which electricity supplier is the cheapest?

Bank notes and coins

The frustrating thing about finding an answer to this question is that there's no easy answer. Getting the best deal on electricity depends on a number of factors, including how you use energy, how on top of your energy spending you want to be, and how willing you are to gamble on price rises.

For example, if you're willing and able to use a large part of your electricity at night, you could make the biggest savings on an Economy 7 tariff. If you really want to keep on top of your spending, you might prefer a prepayment tariff with a smart meter, which will allow you to budget your energy as want to and see your spending in real time.

Another important consideration, perhaps the most common, is whether to opt for a fixed-rate tariff or a variable one. A fixed tariff will lock the price you pay per kilowatt of energy used and your daily standing charge for one, two or even three years, depending on your deal. A variable tariff, as its name suggests, is liable to change depending on the wholesale price of energy, so it may be cheaper when you sign up but shoot up after a month or two.

A fixed tariff doesn't mean all you can eat energy!Many people are under the impression that a fixed rate means that they pay the same every month no matter how much energy they use. This is not the case. If you're paying the same every month, it means you're receiving estimated bills and could either be overpaying or building up debt with your supplier.

Many providers' best deals are dual-fuel offers, which are deals that include both gas and electricity, and could save you money while also being more convenient than separating your bills. If you're eligible, it is also worth looking into whether a supplier offers the Warm Home Discount, which could save vulnerable people an extra £140 on their energy bills. For a handy guide on keeping warm in winter, check out Selectra's page offering information on the Warm Home Discount and other assistance schemes.

Lastly, it would be remiss of us to forget the importance of green tariffs, not just cheap tariffs. For more and more energy consumers, saving on your carbon footprint is increasingly important, and there's no longer any reason you can't save money while you do it.

With all of the above in mind, we're going to pin down the cheapest electricity supplier across all the various types of tariffs you have available, hopefully helping you find the cheapest deal that's right for you in the process.

Where to go for the cheapest green energy deal?Find out today by giving one of our agents a call. Call 020 3608 4293 or Get a free callback now.

What is the UK's cheapest fixed electricity tariff?

Here are the cheapest fixed electricity-only deals available on the UK market at the moment. All of our annual estimates were taking for a 3-bedroom house in London using the average amount according to Ofgem:

Provider Tariff name Annual estimate
Symbio Energy Low, Fair and Green 15M £501
Green Energy UK Watt 12M £530
Pure Planet 100% Green 12M-Fixed Direct £530
Octopus Energy Octopus Direct 12M £537
So Energy So Bramble £574

Prices taken in January 2021

It's clear from this table that the choice is not necessarily between the cheapest and greenest tariff, as the two often go hand-in-hand. Several of the above tariffs will save both your wallet and your impact on the environment.

How green is the energy powering your home?See if you could be doing more for the environment. Call one of our agents to compare tariffs. Call 020 3608 4293 or Get a free callback now.

What is the UK's cheapest variable tariff?

Here are the cheapest electricity suppliers in terms of variable tariffs available to UK customers. Beware again that these prices can go up and down depending on the wholesale price of energy:

Provider Tariff name Annual estimate
Octopus Energy Flexible Octopus £537
Neon Reef Aqua One £540
Pure Planet 100% Green Variable £557
Outfox the Market Clean VE 3.0 £593
Igloo Pioneer £604

Prices taken in January 2021

What is the UK's cheapest prepayment tariff?

Here are the cheapest electricity suppliers for prepayment customers only using electricity:

Provider Tariff Annual estimate
Omni Energy Standard variable £548
Bulb Standard variable £668
Nabuh Energy Lizzy (Fixed 12M) £679
Bristol Energy Standard variable £784
EDF Energy Prepayment total service (Fixed 12M) £800

Prices taken in January 2021

As you can see, these deals come in more expensive than more traditional deals for the same usage, but if you want a prepayment meter (link coming soon) because you plan on regulating your usage carefully then you may end up paying less than this amount. We still think it makes more sense to choose a fixed tariff, however, as the rate you pay tends to be much lower.

What is the UK's cheapest green energy tariff?

For those who want their home energy to have minimal impact on the environment, here's a look at the cheapest electricity suppliers offering green energy tariffs for homes looking to sign up for both gas and electricity:

Cheapest dual fuel offer by provider
Provider Cheapest green tariff Price per year
Pure Planet 100% Green Variable £944
Octopus Energy Direct 12M Fixed £958
Ovo Energy Better Smart (1 year fixed) £1,008
British Gas Green Future March 2022 dual-fuel £1,022
E.ON Fix 1 Year v5 £1,034
So Energy So Bramble (1 year fixed) £1,044
Bulb Vari-Fair (1 year fixed) £1,152
Good Energy 1-year fixed dual-fuel tariff £1,284
Green Energy UK Sparkling Tariff 2022 £1,327
Ecotricity Green electricity and green gas £1,356

All discounts and cashback have been applied to the price. The above quotes are for a three-bedroom home in London and use Ofgem's average consumption rates. Last updated: January 2021

Here at Selectra, our trained advisors can find you the perfect energy plan for your home. Call 020 3608 4293 now or request a callback to get free energy advice.

Why choose a green electricity tariff?

World in hands

We make a lot of careful decisions about the products and services we buy. Price is a major consideration, but other factors inform our choices too, including ethical ones. As consumers we have a lot of power to influence the behaviour of companies and governments through what we choose or don’t choose to spend our money on.

With the coronavirus outbreak showing how much raw authority governments have at their disposal in a crisis, we should be demanding more action in the face of the greater threat that the climate emergency presents.

Choosing to make the switch to green energy is not just one of the most significant actions individuals and families can take in tackling the damage caused by carbon emissions, it is also a signal to the powers-that-be that we're taking this threat seriously, even if they aren’t.

In terms of the climate emergency, the experts have been warning of the danger for some time and disaster, like Coronavirus, is already on our doorsteps.

Other things to look for in an energy provider

While price is important, finding the cheapest electricity supplier is not the be all and end all. The customer service offered by your supplier is one of the most important things to take into account when choosing a new tariff. Whether it’s dealing with billing mistakes, smart meter installations, or switching tariffs, it’s important to pick a company with a good track record of helping its customers instead of hindering them.

Any number of unforeseen circumstances could see you spending a lot of time communicating with your provider on the phone, online chat or by email. With some companies making customers wait on hold for up to twenty minutes or taking days to answer a simple email, your mileage may vary considerably between suppliers when it comes to quality of service.

Take into consideration this list of the top ten best-rated suppliers for customer service by Citizens Advice in 2020:

  1. Green Energy UK
  2. M&S Energy
  3. So Energy
  4. Octopus Energy
  5. Affect Energy
  6. EDF Energy
  7. Coop Energy
  8. Outfox the Market
  9. Igloo Energy
  10. Avro Energy

Here at The Switch we have partnered with Selectra to help make your life easier when it comes to finding your way around the energy market and choosing the best-value green energy suppliers offering the best service. Make the switch today with us.

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