Calculate current tariff
Consumption, unit price and base fee create the current yearly cost.
Guide
Electricity tariff switching: compare savings properly
A tariff switch is not automatically good just because the unit price looks lower. Annual consumption, base fee, bonus and the recurring cost after year one decide whether the saving is reliable.
Quick answer
Quick answer: when is switching worth it?
A switch is strongest when it saves in year one and remains cheaper without the bonus. If the advantage comes only from a sign-up bonus, schedule another comparison before the bonus period ends. For international use, this is a simplified single-rate model: UK standing charge and unit rate can be entered, while US tiered rates, time-of-use pricing, demand charges, taxes and local utility fees must be checked separately. No exchange-rate conversion is applied.
Example
Example: Separate bonus from recurring savings
Decision focuswhether a new electricity tariff is truly cheaper
Main leverannual consumption, unit price, base fee and bonus
Separate checkprice guarantee, contract term, cancellation period and bonus rules
Next stepcompare year one and the tariff without bonus separately
Decision view
Check the saving without the bonus
The visual separates starting benefit, recurring tariff effect and contract checks. This keeps the decision from depending only on the most attractive headline saving.
Key values in the visual
The figures help interpret the visual flow.
Resultsaving in year one and later years
Main leverunit price, base fee, consumption and bonus
Separate checkprice guarantee, contract term and local tariff rules
The recurring saving is the reliable part of the result. A bonus can improve year one, but it does not replace a better unit price or base fee after the bonus period.
Local tariff details and future price changes can change the actual saving.
Calculation
Calculation method and model limits
The model compares current yearly cost with a new tariff. Bonus and switching costs affect only year one, so the recurring saving stays visible.
Calculate new tariff before bonus
This shows whether the offer is cheaper on a recurring basis.
Add bonus and switching costs
These effects belong to year one only.
Review later years
Recurring annual saving shows the stable direction after the bonus.
Check local tariff rules
Price guarantee, term length, taxes, fees and supplier rules decide whether the switch is practical.
The most important comparison is first-year saving together with recurring annual saving before bonus.
If-then rules
If-then rules for switching
If year one and recurring saving are both positive
review the switch seriously and check contract term, price guarantee and cancellation period.
If only the bonus creates the saving
treat the tariff as a year-one option and set a reminder for the next comparison.
If the base fee is much higher
recalculate with your real consumption because a low unit price can be misleading at low usage.
Step by step
How to interpret this topic
The lever behind the result
The largest lever depends on consumption. High usage usually makes the unit price decisive; low usage can make the base fee surprisingly important.
Where the model ends
Price guarantee, contract term, cancellation period, bonus rules, billing logic, future price changes and local utility rules must be checked next to the result.
Why later years matter
Year one can look strong because of a bonus. The recurring annual saving shows whether the tariff remains cheaper after one-off effects disappear.
Checklist
Checklist for tariff switching
- Use annual consumption from your latest bill.
- Enter unit price and base fee separately for both tariffs.
- Include the bonus only when the conditions and payout are realistic.
- Check price guarantee, contract term and cancellation period in the offer.
- Schedule another comparison before a first-year bonus expires.
Common mistakes
Common electricity tariff comparison mistakes
Looking only at the unit price
A higher base fee can offset a lower price per kWh, especially when consumption is low.
Treating a bonus as permanent
A bonus usually improves year one only. The recurring comparison must work without it.
Ignoring local tariff rules
Time-of-use pricing, demand charges, local taxes, fees and supplier-specific credits can change the real bill.
FAQ
Frequently asked questions about tariff switching
When is switching electricity tariff worth it?
It is strongest when the new offer saves in year one and stays cheaper without the bonus. Contract details and price guarantees still need checking.
Why compare bonus and recurring cost separately?
Because a bonus usually affects year one only. The recurring saving shows whether the tariff remains useful after the bonus.
Does the model include time-of-use tariffs?
No. This is a simplified single-rate model. Time-of-use pricing, demand charges, tiered rates, taxes and local utility fees must be checked outside the model.