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Comparing energy tariffs: What’s best for your house size?

Sun character learning about energy topics at their laptop.

When it comes to your energy bills, the size of your home matters, but your lifestyle also plays a part. While a large five-bedroom family house naturally needs more power to run than a single person’s studio flat, how and when you use that power determines whether you're getting the best value.

Think of your house size as your base energy volume. Your daily habits – like when you run the washing machine or charge your electric car – are what dictate which electricity tariff could help save you money.

You see, it’s not just about the space you’re in; it’s about making that space work for your budget. Now, we’ll help you find the most suitable tariff for your home and needs.

Energy use benchmarks: How much does your house use?

Understanding the benchmarks for a typical home in the UK is the first step in helping you compare energy tariffs. Check out where your household sits on the scale, including the average energy usage for a 2-person household.

House size

Electricity use (annual)

Gas use (annual)

Up to 1 bedroom (1-2 people)

~1,800 kWh

~7,500 kWh

2-3 bedrooms (2-3 people)

~2,700 kWh

~11,500 kWh

4+ bedrooms (4-5 people)

~4,100 kWh

~17,000 kWh

Source: Based on Ofgem’s Average gas and electricity usage. Figures are examples of average energy use. Your bill could be higher or lower depending on how much energy you use.

Bedroom by bedroom: Suitable energy plans for every house size.

Matching your plan to your home isn’t as tricky as it sounds. It's all about finding the balance between flexibility, price certainty, and smart savings based on your specific needs.

Up to 1-bedroom: Be flexible with a standard variable tariff.

If you live in a smaller home with no more than two bedrooms, you’re likely a lower energy user. In this case, staying nimble could be the smartest move.

Standard variable (SVT) tariffs are the most common choice here. These are plans where your prices can go up or down based on the wholesale market and the Ofgem price cap. For renters or those who don't want to be tied down, these tariffs could be a great fit.

Our standard variable plans track the price cap, meaning you aren't locked into a long term contract and won't face any exit fees if you decide to change energy supplier.

2-3 bedrooms: Lock in value with fixed tariffs.

For a typical family home, budgeting is usually a priority. Sudden spikes in energy costs can throw a spanner in the works, which is why fixed tariffs can be popular.

Fixed tariffs are where prices are secured for the length of your tariff. Unit rates and standing charges remain the same until your tariff ends. However, the amount you actually pay changes depending on how much energy you use within each billing period. Though, choosing a fixed direct debit could help you to budget effectively.

4-bedrooms or more: Managing high energy use.

When you have a large home, small differences in unit rates can add up to significant differences in your annual bill. High users often gain the most from time of use tariffs, which offer cheaper electricity at certain times of the day or night.

Our smart time of use tariffs are built for this. By shifting some of your heaviest usage (like laundry or heating) to off-peak hours, you could lower your average energy bill. You'll need a smart meter to make this work because it tracks your usage every half hour to ensure you get those lower rates.

Make your home smarter: EV, solar, and heat pump tariffs.

If your home is kitted out with an electric vehicle (EV) charger, solar panels, or a heat pump, a standard tariff might actually be costing you more than it should.

Specialist tariffs vs. fixed rate tariffs: The 30% rule.

Specialist tariffs are almost usually better for EV owners, but there's a simple rule of thumb: if you can shift at least 30% of your total household energy use to off-peak times, a specialist tariff like Next Drive and Next Drive Smart will likely beat any standard fixed deal.

With Next Drive, you could benefit from ultra-low overnight rates, making the cost of powering up your car cheaper than petrol or standard day rate electricity.

Next Optimise: Transform your battery into an intelligent energy partner.

If you are due for renewal, our Next Optimise tariff could be a good option. It’s suitable if you have solar panels, a home battery and an EV. Our 12 month dynamic import and export tariff gives you access to wholesale market prices.

Paired with our Next Optimise app, we can optimise your solar battery output through AI modelling and machine learning. It'll charge your battery when prices are lower, and you can use or export stored energy when prices are higher. Learn more about Next Optimise.

Smart Export Guarantee (SEG): Earning from your roof.

If you have solar panels, you aren't just a consumer, you’re a producer. Through the Smart Export Guarantee (SEG), you can export your excess power back to the grid through us. This way, you can offset the costs of the energy you do buy from us, helping your home become more self-sufficient.

Currently, we have several SEG tariffs and which one you choose depends on what kind of customer you are. Find out more about our SEG tariffs and renewals.

Managing energy costs in retirement and later life.

Retirement can change your relationship with your home. You could find that you’re there more often during the day, which means your heating and lights are working harder than they used to.

Keeping your home warm and efficient during retirement.

Because your energy use could be more consistent throughout the day, a fixed tariff is often the safest bet. It protects you from price spikes during cold spells, making it easier to manage a fixed income.

Accessing extra support and benefits as a pensioner.

Luckily, there is a range of energy help for pensioners, designed to keep you safe and warm throughout the year.

Priority Services Register (PSR).

The PSR is a free service that provides extra support, such as priority support in an emergency and advanced notice of scheduled power cuts (wherever possible).

Winter Fuel Payment.

If you were born before 28 June 1960, you could get between £100 and £300 towards your heating bills for winter 2026 to 2027. Check your eligibility on the Government's Winter Fuel Payment web page.

Home office energy: Domestic vs. business tariffs.

If you're a sole trader working from a spare room, you might wonder if a business tariff is the better option. However, there's a major tax difference to consider. Domestic energy is charged at 5% VAT, while business energy is usually 20%.

Most home-based workers save more by staying on a domestic energy tariff for households. Unless your business equipment makes up more than 50% of your total energy use, the higher VAT and lack of a cooling off period on business contracts usually make domestic plans the better deal.

If your electricity use for business purposes is more than 5000kwh to 20000 kwh, you can speak to our business team to find out about more suitable business tariffs.

Defining a microbusiness.

Then, there are microbusinesses. Your business is classed as a microbusiness if it has fewer than 10 full-time equivalent employees and a turnover or a balance sheet total of no more than £2 million.

Your business is also a microbusiness if it:

  • Uses no more than 100,000 kWh of electricity a year.

  • Uses no more than 293,000 kWh of gas a year.

In this situation it doesn't matter how many employees your business has. If you’re considered a microbusiness, speak to our business team to find out about suitable business tariffs.

Energy tariffs for households with high energy use and medical equipment.

Whether you’re managing an extra busy home or powering life-critical medical equipment, your energy needs are unique. Having the access to the right support and the most cost-effective tariff could help you manage your situation more effectively.

High energy use families.

For busy families, the time usually between 4pm and 7pm is when energy use peaks. By shifting chores like the dishwasher or laundry to off-peak or super off-peak hours, you could see lower energy bills.

Embed Tim Peake video: https://www.youtube.com/watch?v=Ca-OIlkIo2M 

Homes with important medical equipment.

If someone in your home relies on essential medical equipment like a dialysis machine or a ventilator, energy is more than a utility – it’s a lifeline.

It is vital that you sign up for the Priority Services Register. You’ll get notified of any planned outages and given emergency support if the power goes out unexpectedly, so you can keep your equipment running. And if you’re struggling to pay, we can help.

We also offer advice on how to switch to a plan that could provide more stability for medical equipment.

For more information on finding the right plan for your home, explore our full range of energy guides.

Your FAQs about energy tariffs.

What is the average bill for a 2-3 bedroom house?

For a 3-bedroom home with 2–3 people, the average annual dual fuel bill (electricity and gas combined) is approximately £1,641 annually. This is based on Ofgem’s medium usage benchmarks of 2,700 kWh of electricity and 11,500 kWh of gas.

How much electricity does a 1-bedroom house use?

A typical 1-bedroom flat, usually occupied by 1–2 people, uses around 1,800 kWh of electricity per year. This is classed as ‘low’ usage by Ofgem.

How much electricity does a 2-3 bedroom house use?

The cost for a 2-3 bedroom home falls between the ‘low’ and ‘medium’ benchmarks (on average), using around 1,800–2,200 kWh per year.

Is it cheaper to have a business tariff for a home office?

Usually, no. While business unit rates can look competitive, they're subject to 20% VAT, whereas domestic energy only carries 5% VAT. Business contracts also lack the 14-day cooling off period and the protection of the Ofgem price cap.

Unless your business usage adds up to more than 50% of your total home energy use, staying on a domestic household tariff could be more cost effective.

If your electricity use for business purposes is more than 5000kwh to 20000 kwh, you can speak to our business team to find out about more suitable business tariffs.

However, if you’re considered a microbusiness, speak to our business team to find out about suitable business tariffs.

Can I get help with my bills if I am a retiree on a low income?

Yes, there’s support available. You might also be eligible for the Winter Fuel Payment and Cold Weather Payments.

You could also join the Priority Services Register for extra safety and support. The Government website gives you more information on these services.