Energy comparison sounds simple. It is not. The way most people compare quotes leads them to pick deals that cost more than they expect — because they are not comparing the right numbers in the right way. Here is how to do it properly.

The Problem With Headline Annual Cost Estimates

When you search on a comparison site, the annual cost shown is calculated using Ofgem’s ‘typical domestic consumption values’ — 2,700 kWh of electricity and 11,500 kWh of gas per year. If your usage is significantly different (and for many households it is), the ranking of deals changes. A 1-bed flat using 1,400 kWh electricity and 6,000 kWh gas will get very different value from each tariff than a 4-bed house using 5,000 kWh electricity and 18,000 kWh gas. If you want to take control of your energy bills, it only takes a few minutes.

Step One: Get Your Actual Annual Usage

Find your last 12 months of energy bills or check your online account. You need your actual annual kWh for electricity and gas separately. If you have a smart meter, this data is available in your supplier’s app broken down by month. This is the most important step — everything else follows from it.

Step Two: Enter Your Real Usage on Comparison Sites

Most comparison sites have an option to enter your actual usage rather than using typical figures. Always use this. On Uswitch it is under ‘I know my usage’. On MoneySuperMarket look for ‘Enter my own usage’. This recalculates all deals based on your actual consumption. You can also energy saving tips to see what’s available.

Step Three: Check Both Unit Rate AND Standing Charge

Every tariff has two costs: the unit rate (p/kWh, what you pay per unit used) and the standing charge (p/day, a fixed daily fee). A tariff with a very low unit rate but a high standing charge (31p/day for gas + 61p/day for electricity at the current cap) can cost more overall than a tariff with a higher unit rate but lower standing charge — especially if your usage is low. Calculate total annual cost yourself: (annual kWh × unit rate) + (365 × standing charge/day). Compare the best deals available today using your actual usage.