Cheapest gas supplier 2022

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Looking to save some money? Well, then an energy supplier that offers a cheap tariff might be the best option for you. However, it is important to note that the cheapest gas supplier is not necessarily the best. There are other factors involved such as customer service, accurate billing and smart meters. Plus there are environmental considerations. For many people finding a supplier who offsets their gas or also offers green electricity is an important factor.
Last update: June 2022

As you may have heard on the news, the UK energy market crisis is driving up energy costs and putting several energy suppliers out of business. As a result, we have currently paused our supplier switching services, however, we hope to return as soon as possible. To learn more about this and stay updated you can read our page on the UK energy crisis.

However, knowing the cheapest gas supplier can help you to make an informed decision. This guide aims to tell you everything you need to know.

Heating our homes and having access to hot water, as and when we need it, are essential basics for everyday life. Of course, for most of us, that means paying for an energy supply. And for 86% of homes in the UK, that means using the natural gas mains connection – that’s around 23 million properties across the country. However, just because gas is an essential service that doesn’t mean we want to be paying any more for it than we should be. Read on to find out more about the cheapest gas supplier.

Who is the UK’s cheapest gas supplier?

At the moment, as a result of a global gas shortage, gas prices in the UK are at record levels. As a result, many notable suppliers have stopped listing their tariffs online and urged customers not to switch suppliers given the current instability of the market.

However, there are several reputable suppliers that have continued to list their current rates and offer quotes to potential new customers.

Outfox the Market

Well known throughout the UK for offering low rates on their energy, Outfox the Market may not be a major surprise for many. Since being founded in 2017 customers of Outfox the Market have formed a loyal community that advocates for their value-based strategy, which is something you can’t find in many larger suppliers.

At the moment they offer one of the lowest rates for gas, with their variable rate tariff, “One Green Flex”, however, it is important to note that this tariff is only available as part of a dual fuel tariff plan, meaning that you’ll have to purchase both your gas AND your electricity from Outfox the Market to get their rates.

The pricing for this tariff can be seen below:

Supplier Type Availability Standing Charged Unit Rate Annual osts Exit Fee Green Tariff
Outfox the Market Standard Variable 17.85 £ 19.43 £ 640.21 0.00 ✖️
Outfox the Market Fixed
12 months
26.37 £ 35.36 £ 1,121.66 50.00 ✖️

Together Energy

Together Energy focuses on bringing both simplicity and transparency to the UK energy market, and as a result, many consumers have found them to be a hospitable provider for their energy needs. Among their several tariff options is their standard variable tariff, which is aptly named Freedom Variable.

You can find the tariff cost information on this tariff below:


Plan Tariff type Standing Charge (P/Day) Unit Rate Cost (p/kWh) Average total annual cost (£/year) Exit cost (£/fuel)
Freedom Variable Variable Rate 26.11 p* 4.00 p* £ 575.50** £ 0.00

* Please note that these prices are national averages and can vary significantly from one region to another. Despite the current volatility of the market, we attempt to maintain this pricing information as up-to-date as possible. Prices and availabilities are therefore updated on a weekly basis. To get the most accurate information possible, you can call our experts today that will give you the current prices for your location. Prices are accurate as of 18/10/2021.
** Based on the Typical Domestic Consumption Values (TDCV) defined by Ofgem. On average: 2,900.00 kWh of electricity and 12,000.00 kWh of gas per year.
Rates are inclusive of VAT at 5%.



Scottish Power

As one of the “Big 6” energy suppliers in the UK, Scottish Power is one of the most stable suppliers in the UK. Not only does their large infrastructure allow them to supply energy to a large number of customers across the entire UK, but it is also designed to operate sustainably. Scottish Power is among several notable suppliers in the UK that are able to offer renewable energy at a very good rate. However, the gas supplied by Scottish Power is actually not green rather it is sourced from fossil fuels, so this may be an area of concern if sustainability is a must for your next supplier.

Their most affordable gas tariff’s rates can be seen below:


Plan Tariff type Standing Charge (P/Day) Unit Rate Cost (p/kWh) Average total annual cost (£/year) Exit cost (£/fuel)
Standard Variable Variable Rate 26.110 p* 4.010 p* £ 576.567** £ 0.000

* Please note that these prices are national averages and can vary significantly from one region to another. Despite the current volatility of the market, we attempt to maintain this pricing information as up-to-date as possible. Prices and availabilities are therefore updated on a weekly basis. To get the most accurate information possible, you can call our experts today that will give you the current prices for your location. Prices are accurate as of 15/10/2021.
** Based on the Typical Domestic Consumption Values (TDCV) defined by Ofgem. On average: 2,900.00 kWh of electricity and 12,000.00 kWh of gas per year.
Rates are inclusive of VAT at 5%.



Entice Energy

This rather small supplier first started off back in 2015 and has been competing with large scale competitors without immense struggle since then. Customers that have left reviews online for this supplier seem to suggest that they have either met or exceeded the expectations of all their customers.

Their range of tariffs is exceedingly simple, being that they only offer one variable rate and one fixed rate tariff, their variable rate tariff currently offers one of the most affordable gas plans in the UK.

You can find the cost information on this tariff below:


Plan Tariff type Standing Charge (P/Day) Unit Rate Cost (p/kWh) Average total annual cost (£/year) Exit cost (£/fuel)
Flexible Saver Variable Rate 25.73 p* 3.99 p* £ 572.76** £ 0.00

* Please note that these prices are national averages and can vary significantly from one region to another. Despite the current volatility of the market, we attempt to maintain this pricing information as up-to-date as possible. Prices and availabilities are therefore updated on a weekly basis. To get the most accurate information possible, you can call our experts today that will give you the current prices for your location. Prices are accurate as of 18/10/2021.
** Based on the Typical Domestic Consumption Values (TDCV) defined by Ofgem. On average: 2,900.00 kWh of electricity and 12,000.00 kWh of gas per year.
Rates are inclusive of VAT at 5%.



Bristol Energy

Bristol Energy was started by the Bristol City Council back in 2015 to ensure that affordable energy was available throughout the UK. The company is well known for its strategy of putting its profits right back into the community by supporting local projects aimed at improving the quality of life of residents.

Many of their tariffs are very competitively priced and as a result, even offer one of the lowest gas rates in the UK at the moment with their “BE Standard Green” tariff.

The pricing information on this tariff can be seen below:


Plan Tariff type Standing Charge (P/Day) Unit Rate Cost (p/kWh) Average total annual cost (£/year) Exit cost (£/fuel)
BE Standard Green Variable Rate 26.110 p* 4.000 p* £ 575.367** £ 0.000

* Please note that these prices are national averages and can vary significantly from one region to another. Despite the current volatility of the market, we attempt to maintain this pricing information as up-to-date as possible. Prices and availabilities are therefore updated on a weekly basis. To get the most accurate information possible, you can call our experts today that will give you the current prices for your location.
** Based on the Typical Domestic Consumption Values (TDCV) defined by Ofgem. On average: 2,900.00 kWh of electricity and 12,000.00 kWh of gas per year.
Rates are inclusive of VAT at 5%.



What is a standing charge?

Standing charges are the fees we pay each day for the energy supply to be connected to our homes. So, as well as paying for the amount of gas we consume, we also pay a daily rate for the connection. The amounts of these charges can vary and a result will affect the cost of your supply shaping what the minimum for your monthly energy bill could look like.

The standing charge covers:

  1. Using and maintaining the energy networks such as the pipes that carry gas around the country
  2. Keeping your home connected to the mains
  3. Meter readings
  4. Payments towards government initiatives

Gas standing charges in the UK can vary between 10p and 80p per day, depending on your tariff. The national average is £85 a year but some people pay as much as £250. There is talk Ofgem, the industry regulator, putting a cap on standing charge prices which would benefit low income households.

There are some energy suppliers who do not use a standing charge or set a rate at £0 on your bill. This means you only pay for the energy you use, which is great news for occasional use properties such as holiday homes. However, the energy unit rates are usually much higher and medium to high users will usually end up paying more. Currently there are two suppliers offering zero standing charges. These are Ebico Zero Green Fixed and Utilita’s Smart Energy.

A standing charge close to 10p day is about as low as it goes. For most of the Big Six, gas standing charges are around 25p to 27p per day.

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What suppliers offer Green Gas?

Green gas, often referred to as biogas or biomethane, is a term used to refer to gas sourced from renewable and environmentally conscious methods, and it does not include gas from harmful resources like fossil fuels. Green gas can be sourced in a number of ways but the most common is called anaerobic digestion, which ostensibly means decomposition without oxygen.

To obtain green gas from anaerobic digestion a sealed oxygen-free container is filled with food, human or animal waste and allowed to decompose. As the organic material decomposes gases are released which can ultimately be harnessed, and even used to heat your home or power your kitchen stove.

Green gas is not very common among UK energy suppliers, so only a select few of them offer it at the moment.

What suppliers offer the cheapest green gas?

As green gas is still a relatively new concept, as mentioned above, there are only a handful of suppliers that offer it. For your convenience, we have broken down a list of the cheapest tariffs offered by suppliers that use green gas in their power supply.

You can find the pricing information of these tariffs below:


Supplier Plan Tariff type Standing charge (p/day) Unit rate cost (p/kWh) Average total annual cost (£/year) Exit cost (£/fuel)
Outfox the Market One Green Flex Variable Rate 21.00 p* 3.17 p* £ 456.97** £ 0.00
Octopus Energy flexibleOctopus Variable Rate 23.850 p* 3.270 p* £ 479.512** £ 0.000
E.ON Next Next Flex Variable Rate 30.780 p* 4.400 p* £ 640.424** £ 0.000
Bulb Energy Vari-Fair Variable Rate 26.112 p* 4.055 p* £ 581.974** £ 0.000
Good Energy SVT Standard Variable Rate 25.710 p* 4.000 p* £ 573.906** £ 0.000

* Please note that these prices are national averages and can vary significantly from one region to another. Despite the current volatility of the market, we attempt to maintain this pricing information as up-to-date as possible. Prices and availabilities are therefore updated on a weekly basis. To get the most accurate information possible, you can call our experts today that will give you the current prices for your location.
** Based on the Typical Domestic Consumption Values (TDCV) defined by Ofgem. On average: 2,900.00 kWh of electricity and 12,000.00 kWh of gas per year.
Rates are inclusive of VAT at 5%.


What country has the cheapest gas?

Within Europe, Ukraine has the cheapest natural gas thanks to a large supply of the natural resource. Sweden pays the most, followed by the UK, Switzerland and Belgium. However, there are some countries in areas where gas reserves are very good where prices are even lower still. This included several countries in Central Asia.

Who is the cheapest gas supplier?

Is gas free in any country?

Turkmenistan has offered free energy, including gas and electricity to all its citizens. However, they made a move away from this policy, describing it as ‘ineffective’. Every citizen was entitled to 50 cubic metres of gas each month but this ended in 2014, with only people with lower incomes receiving this benefit.

Wholesale gas market price vs retail price

The price that a supplier buys the gas from in large volumes is called the wholesale price. The amount we pay for it as consumers is called the retail price. The difference between these two is the profit and running costs of the supplier. So, just how big is the difference between wholesale and retail prices.

Obviously it depends on the company, as every provider both buys and sells at different rates according to their own business model. However, on average in the UK supplier costs and margins make up around 67% of the consumer bill. This is by far the highest component of your gas bill.

Other charges on your bill include:

  • 16% distribution charges
  • 2% transmission charges
  • 6% environmental charges
  • 5% VAT
  • 4% other

Wholesale gas price evolution and reasons

The price of gas in the United Kingdom is expected to be about 37.6 pence per therm by 2024/25. This would equal a 38% decrease compared to 2018/19, when gas prices reached a peak of 60.7 pence per therm.

The reasons for this decrease are to do with the supply and demand. If supply is set to increase in the coming years from various sources, then this will result in a drop in prices. Supply side fluctuations are caused by factors such as global reserves, cost of transportation and regional stability.

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FAQ

Who is the UK's cheapest gas supplier?

At the moment, the cheapest gas tariff is offer by Outfox the Market. However, this tariff is part of a dual fuel package so you will also need to sign to have your electricity supplier by them as well.

Which energy supplier has the cheapest standing charge?

Technically, the cheapest are provided by Ebico and Utilita, which have no current standing charges for some of their tariffs. However, these are more suitable for holiday homes as they charge more per unit. Most other companies charge between 10p and 80p per day for their standing charges.

Is gas free in any country?

Turkmenistan used to offer free gas and electricity to all its citizens. However, they described the policy as ‘ineffective’ and ended the universal scheme in 2014. Some people still receive free energy, however, on a means tested basis.

What is the difference between wholesale gas market price vs retail price?

Suppliers buy the gas in large volumes at a wholesale price. The amount consumers pay is called the retail price. The difference between these two is the profit and running costs of the supplier.

Updated on 26 May, 2022

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Comments

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Harry M.
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I am unsure if I have understood the different tariffs correctly. I had a negative experience with my gas supplier and I want to change. Can I stay with my electricity supplier? Thank you