What Are the Cheapest Energy Prices in My Area?

Energy prices are not the same across the UK, and the cheapest energy plan that suits someone else might not be the same as the cheapest plan that suits you.

The most efficient way to find the most cost-effective plan is to compare energy prices and make sure they are based on your postcode, as well as the amount you use and the type of meter you have. By doing this, you are only looking at the energy deals that are actually available in the UK, rather than the average cost.

Why Energy Prices Vary by Area

It might seem strange that two people with the same amount of energy consumption are charged different amounts, but the answer is the way the UK energy system is set up.

  • The UK is split into ‘regional distribution areas’
  • Each region has its own system to transport energy
  • Each supplier is charged differently to transport energy
  • This is then reflected in the amount you pay

This means that:

  • Your standing charges might vary significantly depending on the region
  • Your unit rate might vary slightly
  • Not all tariffs are available in all regions

So, even if you use the same amount as someone else, the amount you pay might look very different.

What Affects Energy Prices in Your Specific Area?

There are a few factors that affect the amount you pay and the energy deals that are available to you.

Standing Charges

This is the cost of being connected to the energy supplier’s network. In some areas, this is significantly higher, and this could add to the cost even before you use any energy.

Unit Rates

This is the cost per unit of the energy that you are using. Although the differences between regions have narrowed over the last few years, they still exist.

Supplier Availability

Not all energy suppliers are available in all areas. So, the actual deals that are available to you will depend on your location, as measured by your postcode.

Meter Type

This depends on whether you have:

  • A standard credit meter
  • A smart meter
  • A prepayment meter
  • An Economy 7 meter
  • Your own home

The type and size of your own home can have an effect on the amount of energy that is used, and this is more important than the cost itself.

How to Find the Cheapest Energy Deal in Your Area

To find the answer to this question, the simplest thing to do is:

  1. Enter your postcode on the Simply Switch website
  2. Enter the amount of energy you use (or an estimate if you’re not sure)
  3. Confirm the type of meter you have
  4. Compare the energy deals, sorted by cost
  5. Compare the cost, type, and flexibility of each energy plan
  6. Pick the energy plan that suits you best

Once you’ve picked a tariff, everything is handled for you, and your energy supply stays exactly as it is during the switch.

What Is a Good Energy Unit Rate for My Area?

A good energy unit rate is not the same everywhere because the cost varies depending on the region.

However, there are a couple of useful general points:

  • The price cap set by Ofgem is the maximum amount suppliers can charge on a standard variable tariff
  • The cap varies depending on the region you are in
  • Sometimes, the rates offered on a fixed tariff can be below the cap, depending on the state of the market

It’s also worth remembering:

  • A low unit rate doesn’t necessarily mean the cheapest tariff overall
  • Standing charges can mount up, especially if your consumption is low

For all these reasons, it’s worth looking at the estimated annual cost, rather than the individual rates.

Cheapest Energy for Different Home Types and Situations

What works best will vary from one household to another. Here’s a brief guide to what to focus on:

Your situationWhat to compare
Standard credit meter (gas + electricity)Dual fuel or separate tariffs
Prepayment meterPrepayment tariffs available in your area
Economy 7 meterOff-peak rates, including Economy 7 tariffs
All-electric homeElectricity-only tariffs
Rural or off-gas-grid homeElectricity or alternative heating options
Recently moved homeno preconceptions, so don’t compare to current tariff

How Often Should You Check Energy Prices in Your Area?

As the prices of different types of energy are constantly changing, it’s worth checking the prices in your area regularly.

  • At least once a year, as a minimum
  • When your current fixed tariff is coming to an end, to avoid switching to a standard variable tariff, which will likely be more expensive
  • When you move home, as the region you are in may be different
  • Every 6 months if you want to stay on top of the market

It only takes a few minutes to compare, and it can help you avoid paying more than you need to.

FAQs

Why are energy prices different across the UK?

Because the cost of maintaining and running local energy networks varies by region, and those costs are passed on through bills.

How do I find out my energy region?

You don’t have to – simply enter your postcode, and we’ll work out your region for you.

Is the cheapest deal always the best?

Not always. It’s a good starting point, but you should also consider flexibility, contract length, and service.

Can I still save money on a prepayment meter?

Yes. While you may have fewer options, you can still compare and save.

Do all suppliers operate everywhere?

No. That’s why it’s essential to compare using your postcode.

What if I don’t have mains gas?

You’ll have to consider electricity-only deals or alternative heating solutions, but you can still compare what’s on offer.

Conclusion

There isn’t a single “cheapest energy deal” that works for everyone.

  • Prices genuinely vary depending on where you live
  • Your energy consumption and meter type also have a big impact
  • National averages only account for part of this
  • The only way to get an accurate answer is to compare using your postcode.

It only takes a few minutes; there’s no interruption to your supply and it’s one of the easiest ways to ensure you’re not paying too much.