Cheapest Energy Supplier deals (October 2021)

If you have been on a fixed energy deal for a while that has either already ended or is about to end with your current supplier, it might be a good time to start considering if there is a cheaper deal out there that you could switch to.

Price is a big driver for consumers to change, and with so many options, it can be confusing.

So, if you are wondering where you can find the cheapest deals this month, we’ve done some research to help.

Read on to see this month’s cheapest energy deals available on the market.

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Why do energy prices regularly change?

The key reason that energy prices rise and fall throughout the year is due to the wholesale prices across the market fluctuating. For those on a variable tariff, this can have a knock-on effect on your bill.

The electricity and gas that is purchased by suppliers to heat and power your home comes from gas producers, electricity generators and importers. There are times that a supplier will need to buy energy to keep up with a short-term demand. For example, a cold snap.

Generally, however, fuel is purchased way in advance of when it will actually be needed. By buying energy at regular intervals and at different rates, it ensures that our homes are always powered.

These purchasing decisions can, however, backfire on suppliers. For example, if all the suppliers buy a supply at a higher rate to cover a predicted winter cold snap. If that cold snap never comes, then that supplier will be left with more gas and electricity than they had planned for. This in turn will drive up their pricing. When this happens, each supplier will usually sell it back to the original supplier, which in turn causes energy prices to fall. To add another layer of complexity, many of the suppliers here in the UK generate their own gas and electricity. This means they are therefore buying and selling simultaneously.

Ofgem has reported that the price of fossil fuels has risen at an unprecedented rate and this will have to, unfortunately, be passed on to customers later this year. Britain currently uses more gas than we can produce. This means that a large percentage is imported and the price is vulnerable to world events and any other factors that could affect the availability. In addition, the closure of the UK’s main gas storage facility in 2017 has left the UK market far more reliant on imported gas than in previous years.

So, if you are considering switching suppliers, now might be a good time to find a competitive fixed rate deal before the next price hike.

Why do energy prices vary by postcode?

Energy prices can be a bit of a postcode lottery. Depending on where you live, you could end up paying up to £90 more for your energy just based on your location.

There are essentially three main factors that affect how much you pay for energy in your area:

The amount of energy the supplier sells to your area

Essentially, if fewer people live in your area, then the cost per unit is significantly driven up. On the other hand, if you live in a densely populated area, your supplier is likely to buy gas and electricity in bulk, and the cost per unit will be lower as a result.

The volume of energy that a supplier buys from the generators in your region

Energy companies purchase energy from generators to power your home. As mentioned before, these are usually purchased well in advance of their predicted use, but things can change. If something unforeseen happens and a short-term supply is needed to meet demand, this can also push up the regional price.

The charges that the local distribution networks pass on to your energy supplier

A local distribution network assists in distributing the majority of energy supplied to homes and businesses across the UK. The energy suppliers pay the distribution networks a fee for using their service. Six suppliers own and manage the 14 distribution networks across the country. Each of these may charge different prices for their service.

Is green energy as cheap as non-renewable energy?

The cost of renewable energy is falling year on year compared to fossil fuels or non-renewable energy. This is due to the falling costs of wind and solar power generation and technological advancements, and equipment efficiencies. As a result, in 2020, renewable energy costs less than the energy produced using fossil fuels. In addition, on-shore wind farms and solar power are now the cheapest forms of power generation.

Cheapest tariffs overall for October 2021

Due to the increased prices in the energy market, there currently aren’t any cheap deals available.

What else should I consider apart from cost?

Price is often our key driver to change energy suppliers, but you might also want to consider some other factors in your choice. After all, there are dozens of energy suppliers out there, and the product and service you get from one to the other can vary hugely.

If excellent customer service is essential to you, then we would recommend checking out your potential new supplier on TrustPilot to see how they measure up. Many customers would rather choose a supplier for a small amount more per year who is great at handling queries and issues when they arise rather than one who performs poorly in this area.

You may want to look up their customer satisfaction stats as well. This will give you an insight into things like call waiting times and how easy it is to get a response from an email. However, if you are the kind of person who doesn’t intend to contact your energy supplier other than paying the bill, you might be less concerned.

In addition, if being with a green supplier is high on your priority list, then you’ll want to choose a supplier who offers green tariffs and potentially generates their own green energy as well as supporting CO2 reduction projects.

How long does switching suppliers take?

If you sign up for a new supplier that has signed up to the energy switch guarantee, it will generally be about 21 days.  In some cases, it can be quicker, although most wait until the 14-day cooling-off period has passed before initiating the switch. During this time your new supplier will write to you confirming your new contract and your old energy supplier will arrange to send you your final bill.

Is it safe to switch to a small energy provider?

A small energy supplier can be defined as one that is in no way associated with the big six. There are now over 50 independent smaller energy suppliers on the market, and they are by no means equal. Small energy suppliers are now serious market contenders. Many are offering low-cost tariffs due to their reduced overheads and many have a reputation for providing a better level of customer service. Many small suppliers are also leading the way in green technology, making them an appealing choice.

However, some of the smaller suppliers have struggled to last the distance over the last few years. Running into financial difficulties is far more likely for a smaller supplier than a more established option. If your supplier going out of business is a worry, it might be comforting to know that Ofgem has put in place a series of regulations which mean that you will be automatically switched to another supplier and receive uninterrupted gas and electricity supply if this should happen.

When selecting a supplier, it’s good to remember that the gas and electricity you receive into your home is the same regardless of who supplies it. What you are paying for is the customer service, management of your account and any rewards and incentives you signed up for when you last changed supplier. Therefore, it always pays to do a little research before committing to a new energy supplier.

Why do some suppliers offer lower prices than others?

The price on offer will vary from supplier to supplier depending on different factors. For example, the wholesale price of energy, the overheads, and if you choose a supplier with app-only customer services and any other costs they add on. There could also be a different price depending on where in the UK you are due to distribution network charges. The price will also vary depending on whether you opt for a fixed term or variable tariff.

The content contained in this article is provided for informational purposes only and should not be construed as advice on any matter. You should not rely on the information published in this article.

🏆 Our top rated supplier Octopus Energy is currently offering £50 credit to any new customer that uses our referral link. Click below to see why we rate them so highly and get your £50.

Read our review



Rob runs The project initially began when he switched energy suppliers for the first time and found there wasn't a website that provided simple, data backed reviews on all the suppliers available. Since then, Rob has spent considerable time looking at all publicly available data about each supplier and writing reviews using this information. Reviews are updated as regularly as possible and any data is backed up by a source where necessary. If you find any issues, please use our contact form to let us know.

1 Comment
  1. wish there was a comparison site that allowed me to see companies with the lowest daily standing charge!

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