The average household on a standard variable tariff pays £1,568 a year for gas and electricity under the October price cap. A free service could cut that by £250, without you logging into a comparison site or phoning a supplier.
As reported by The Mirror, the service, run by the non-profit Energy Local, uses smart meter data to automatically move households to the cheapest available tariff each year. No forms, no calls, no comparison websites.
Who qualifies, and who doesn’t
The service is open to any household with a smart meter that is not on a fixed-rate deal. That covers roughly 18 million UK homes paying standard variable tariffs, the default, and most expensive, rate. Ofgem data shows these households pay around £200 a year more than those on the cheapest fixed deals.
But the catch is that you need a smart meter that is working and sending half-hourly readings. Around 3 million smart meters are currently in ‘dumb’ mode, meaning they cannot send data. Those households will not qualify until their meter is fixed or upgraded.
Energy Local also requires your consent to access your data, you must sign up online. The service then monitors the market and switches you when a cheaper tariff appears, typically once a year.
What it costs a typical 3-bed semi
Energy Saving Trust estimates that the average household can save between £150 and £250 a year by switching from a standard variable tariff to the cheapest fixed deal. For a typical 3-bed semi using 12,000 kWh of gas and 2,900 kWh of electricity, the saving is around £190, enough to cover a week’s food shop.
The service itself is free. It earns a commission from the supplier you switch to, typically £20–£30 per customer. That is far less than the £60–£80 that comparison sites take, which is why the service can offer it for free.
But there is a risk: if you switch away from a fixed tariff early, you may face exit fees of £30–£50 per fuel. The service says it checks for exit fees before switching, but you should too.
What this means for your EPC
Switching tariffs does not directly affect your Energy Performance Certificate rating. But the service can help you track your energy usage more accurately, which is useful if you plan to upgrade your home’s efficiency. Lower bills also mean you can redirect savings into insulation, glazing, or a heat pump, improvements that do raise your EPC rating.
Ofgem is currently consulting on making automatic switching the default for all smart meter customers by 2026. If that happens, the £250 saving could become standard, not a bonus for the savvy few.
What you should do now
Households on standard variable tariffs should check whether their smart meter is working and sending data. You can do this by looking at your online account or asking your supplier. If it is working, sign up for Energy Local’s service at their website. The service is free and you can opt out at any time.
Do not wait for the October price cap to rise. The £250 saving is real, and it requires almost no effort. That is the rare kind of energy advice that actually pays for itself.
Frequently Asked Questions
Yes, the service charges no upfront or ongoing fees. It earns a small commission from the supplier you switch to, typically £20–£30 per customer, which is less than comparison sites charge. You pay nothing.
No, switching energy tariffs does not change your EPC rating. But the savings can free up money for home improvements like insulation or a heat pump, which do improve your rating and reduce long-term costs.
