Millions of UK households struggling with rising energy costs may be overlooking significant opportunities to reduce their bills, according to new analysis that highlights a growing gap in the energy comparison market.
The warning comes as fresh polling from the End Fuel Poverty Coalition indicates that around 17 million adults are either already behind on their energy bills or concerned about falling into arrears. Of those, approximately five million households are currently carrying energy debt, with a median outstanding balance of £750.
Financial pressures are expected to intensify from 1 July, when the energy price cap increases by 13%, adding £221 to a typical annual household energy bill and taking average costs to £1,862. Industry forecasts suggest total household energy debt could reach £7 billion by the end of the year, while an estimated six million children are living in fuel poverty.
However, alongside concerns about rising prices, new research from Smart Home Energy suggests that many households could be missing substantial savings because the energy comparison services they use do not display a number of tariffs designed for modern electricity consumption patterns.
According to the company’s analysis, between £300 million and £500 million in potential annual household savings may currently be going unclaimed. The estimate is based on the increasing number of households using technologies such as electric vehicles (EVs), heat pumps and battery storage systems, all of which can benefit from specialised electricity tariffs.
For example, Smart Home Energy modelling indicates that a typical electric vehicle owner in London who charges primarily overnight could save more than £600 a year by moving from a standard variable tariff to one specifically designed for EV charging.
Time-of-Use Tariffs Often Missing from Comparisons
The energy market has evolved significantly in recent years as suppliers have introduced more time-of-use tariffs, which charge different rates depending on when electricity is consumed.
Some of these products currently offer overnight electricity at around 7p per kilowatt-hour, compared with standard rates of roughly 25p per kilowatt-hour. Such pricing structures can deliver significant savings for consumers who are able to shift their electricity consumption to off-peak periods.
Households with electric vehicles, heat pumps, solar panels or home battery systems are often among those best placed to benefit. Yet many consumers may not be presented with these options when searching for cheaper energy deals.
MoneySavingExpert’s Cheap Energy Club acknowledges on its own support pages that certain tariffs cannot currently be displayed through its comparison service, including some time-of-use products. The service specifically references tariffs such as Octopus Agile and Octopus Tracker as examples that cannot be compared through its platform.
The issue means consumers following widely promoted advice to compare energy tariffs may not always be shown products that best match their household’s energy usage patterns.
Electrification Increases the Stakes
The challenge is becoming increasingly relevant as more households adopt low-carbon technologies.
There are now more than two million fully electric vehicles registered in the UK, while more than 275,000 homes have certified heat pump installations. Nearly 60,000 of those installations were added during 2024 alone.
Battery storage adoption is also accelerating, with installations rising by 112% during 2025. Despite these trends, only around 9% of UK households currently use a time-of-use electricity tariff.
At the same time, approximately 62% of electricity customers remain on standard variable tariffs, even though cheaper alternatives may be available. Industry estimates suggest the difference between the average standard variable tariff and the cheapest fixed tariff currently stands at around £265 annually.
For households able to shift energy consumption away from peak periods, the savings available through time-of-use tariffs can be significantly higher.
High Electricity Prices Add Further Pressure
The findings emerge against a backdrop of persistently high electricity prices in Britain. Domestic electricity costs remain around 23% above the European Union average, while the UK continues to have one of the highest electricity-to-gas price ratios in Europe.
Campaigners argue that high electricity prices risk slowing the adoption of cleaner technologies such as electric vehicles and heat pumps, making access to the most cost-effective tariffs increasingly important.
Smart Home Energy says its online platform seeks to address the issue by comparing 46 electricity tariffs, including 23 time-of-use products, and modelling household energy consumption patterns rather than focusing solely on overall usage.
The platform also generates personalised Home Energy Plans designed to help homeowners identify short-, medium- and long-term opportunities to reduce energy costs.
Commenting on the findings, Oliver Sylvester-Bradley, Founder of Smart Home Energy, said:
“Millions of households are worried about paying their energy bills, yet at the same time there are significant savings available that many people never discover.
The energy market has changed dramatically. If you have an electric vehicle, a heat pump or a battery, the cheapest tariff depends not just on how much electricity you use, but when you use it.
Unfortunately, the comparison tools most people know were built for a world where electricity cost the same price all day.
As a result, households can be paying hundreds of pounds more than necessary simply because they are never shown the tariffs most suited to their homes.
We built Smart Home Energy to help consumers understand all of their options and make better-informed decisions at a time when every pound matters.”
George Orwell is a writer and contributor covering politics, society, culture, and current affairs. His work focuses on providing clear analysis and thoughtful commentary on the issues shaping modern Britain and the wider world, helping readers better understand complex topics.