How to lower your electricity bill: what each step is really worth, and when power is cheapest

What you are paying for

An electricity bill has two parts: the unit rate, the price of each kilowatt hour (kWh) you use, and the standing charge, which Ofgem describes as the amount “you pay every day even if you do not use any energy on that day”. From 1 October 2026 the average for a household in England, Scotland or Wales paying by Direct Debit is 26.32p a kWh and 54.83p a day, with no VAT on household electricity from 1 October 2026 to 31 March 2027.

The price cap limits those two figures, not the total. Ofgem: “This is the maximum amount your supplier can charge for a unit of energy and standing charge together.” And: “It does not limit the cost of your total bill.” The headline £1,723 a year for 1 October to 31 December 2026, announced on 26 August and up 4% from £1,663, is a typical dual-fuel Direct Debit bill, not a ceiling on yours. The cap covers Great Britain and does not apply in Northern Ireland.

Both figures vary by where you live, how you pay and your meter type. Worked out from Ofgem’s cap tables for Direct Debit, the standing charge runs from about 42.9p a day in London to about 67.7p in Merseyside and Northern Wales, and the unit rate from about 25.4p a kWh in the East Midlands to about 27.9p in Merseyside and Northern Wales. Ofgem’s postcode finder gives your own region’s figures.

What each step is really worth

The Energy Saving Trust (EST) puts a yearly figure on each everyday step, last updated on 6 October 2026, for Great Britain. Switch appliances off standby: around £45. Dry clothes on a line or an indoor airer instead of in a tumble dryer: £50. Replace the remaining halogen spotlights with LEDs: £45. Wash at 30°C and run one fewer wash a week: £26 for the two together (EST gives no separate 30°C figure). Run the dishwasher one fewer time a week: £10. Avoid overfilling the kettle: £10. Turn lights off when you leave a room: around £7.

Two caveats come from EST itself. “You can turn almost all electrical appliances off at the plug without upsetting their programming”, but “some appliances, like fridges and freezers, need to be on all the time.” And the lighting saving is in the LED, not the app: smart bulbs “aren’t likely to save energy”.

EST does not price these at today’s cap. Its methodology page (22 September 2026) says its tariffs are “calculated using an average of recent Ofgem energy price cap periods”, so your own saving depends on your tariff. Its “up to £313” a year is for all ten of its quick tips together, hot water included, not for electricity alone; its hot-water figures only come off the electricity bill if your water is heated by electricity, and in most GB homes it is gas. A home energy monitor shows what is drawing power at any moment.

When is electricity cheapest?

On a standard tariff, there is no cheap hour. EST: “If you’re on a standard electricity tariff, the price is the same whatever the time of day or night.” And: “So, running your washing machine at midnight won’t make a difference.” Ofgem calls this a single rate tariff.

Night is cheaper only if your tariff says so. Economy 7, in Citizens Advice’s words, gives “a lower rate for 7 hours at night - the off-peak price”; Economy 10 gives ten hours. The hours are not fixed nationally: “The exact times depend on your supplier, your tariff and where you live”, and “Your off-peak times might change when the clocks change.” Ofgem caps these tariffs: “Together, they cannot be more than the price cap.”

Your bill tells you which you are on: Citizens Advice says a time-of-use bill shows two or more prices per kWh and two or more sets of meter readings. One price means your electricity costs the same at 3am as at 6pm.

Smart time-of-use tariffs: cheaper overnight, dearer at teatime

The newer tariffs change price through the day. EST: “The price you pay for electricity can change every half hour, reflecting real-time demand and supply.” They need a smart meter that reports every half hour. One example: on Agile Octopus, “Between 4-8pm every day (usually nearer 4pm), your unit rates are updated for the next 24 hours”; its rates change daily, so we do not quote them.

The costly window is the early evening. EST: “When demand is low (usually overnight), electricity is cheaper. When demand is high (early evening), it’s more expensive.” NESO, the system operator, puts the peak at “usually between 4 and 7 pm”. So typically around 4pm to 7pm, but check your own tariff, because the windows differ.

Two cautions. EST: “If you use most of your energy during peak times and can’t shift that, it could even cost a little more.” And fixed-term smart time-of-use tariffs sit outside the price cap, so check the peak rate as well as the off-peak rate. Our guide to time-varying electricity prices covers who these tariffs suit.

Tariff choices and help, one line each

Fixed deals. Ofgem: “You are not protected by the price cap if you: agreed a fixed tariff with your supplier”, and Citizens Advice notes that if prices fall you could end up paying more than on a standard variable tariff. Compare the deal’s unit rate and standing charge against the cap’s; “If you have 49 days or less left on a fixed tariff, you can switch for free.” Our energy switch guide has the checks.

Warm Home Discount. GOV.UK: “The Warm Home Discount Scheme is a one-off £150 discount off your electricity bill.” Your supplier applies it, and “You’ll usually get the discount automatically if you’re eligible.” It is not available in Northern Ireland. Our Warm Home Discount guide has the detail.

Demand Flexibility Service. Some suppliers pay smart-meter customers to shift use at busy times through NESO’s Demand Flexibility Service; ask your supplier whether it is offering it this winter.

Priority Services Register. For households that need extra support, it brings help including, wherever possible, advance notice of scheduled power cuts. Ofgem: “Get in touch with your supplier or network operator directly and give them as much information as you can about your needs.” Our Priority Services Register guide explains it, and energy bill help lists every scheme.

Myths

“Electricity is cheaper at night.” Only on Economy 7, other two-rate meters and time-of-use tariffs. On a standard tariff, EST says, the price “is the same whatever the time of day or night”.

“The price cap limits my bill.” It limits the unit rate and the standing charge. Ofgem: “It does not limit the cost of your total bill.”

“Smart bulbs will cut my bill.” LEDs do; the smart part does not. EST: “they aren’t likely to save energy.”

“Switching supplier will cut my standing charge.” Citizens Advice: “You might get a cheaper standing charge from a different supplier, but it won’t change much.” It depends on your postcode and network operator, not your supplier.

“A fixed deal always protects me.” Only against rises. Citizens Advice: if prices fall, “you could end up paying more than if you were on a standard variable tariff.”

What is next for prices

Ofgem sets the cap for January to March 2027 by 25 November 2026, and the forecasts point upward: Cornwall Insight’s forecast on 30 September was £1,999 for a typical dual-fuel Direct Debit household, against £1,723 now. Our January 2027 price cap guide follows it. VAT is off household electricity until 31 March 2027. For the heating side, see our guide to keeping warm without the heating on.