Comparing Energy and Broadband Deals: What to Actually Look For
Price comparison sites are useful but can be misleading. Here is how to compare deals properly and avoid the traps.
Comparison sites get paid when you switch through them, which affects what they show you. Check multiple sites, look at the total annual cost not just the monthly figure, and watch for mid-contract price rises that aren’t shown upfront.
Comparison sites are useful tools, but they’re businesses with their own interests. Understanding how they work helps you get genuinely good deals rather than whatever pays them the most commission.
How Comparison Sites Make Money
Most comparison sites earn commission when you switch through them. This creates incentives:
- Deals with higher commissions may rank higher
- Some suppliers don’t appear at all (no commercial agreement)
- “Best deals” may mean best for the site, not best for you
This doesn’t mean comparison sites are useless. It means you should use them as one input, not the only source.
Energy Comparison
For energy, Ofgem accredits comparison sites that meet certain standards. Accredited sites must:
- Show a range of tariffs, not just those paying commission
- Be transparent about how they rank results
- Include accurate information
Accredited sites include:
- Uswitch (but also unregulated)
- Money Supermarket
- Compare the Market
- Citizen Advice’s comparison tool (independent, no commission)
Even accredited sites can emphasise deals that pay them more. Citizens Advice’s tool is the most neutral but may have fewer options.
What to Check for Energy Deals
| Factor | Why It Matters |
|---|---|
| Total annual cost | The number that actually affects your budget |
| Unit rates (gas and electric) | What you pay per kWh used |
| Standing charges | Daily fixed cost regardless of usage |
| Contract length | How long you’re locked in |
| Exit fees | Cost of leaving early |
| Price guarantee | Can they raise prices mid-contract? |
Some sites show monthly cost prominently. But a deal that’s £5/month cheaper with £100 exit fees isn’t better if you might move.
Price Cap vs Fixed Deals
The price cap limits what suppliers can charge on variable tariffs. Fixed deals can be above or below this.
Currently:
- Some fixed deals beat the price cap (worth switching)
- Some fixed deals are worse than staying on the cap (not worth it)
- This changes constantly
Check whether a fixed deal is actually cheaper than the cap before switching. The comparison should show this clearly.
Broadband Comparison
Broadband comparison is less regulated than energy. Sites can show whatever order suits their commercial relationships.
What to Check for Broadband Deals
| Factor | Why It Matters |
|---|---|
| Total contract cost | Monthly price × months + setup fee |
| Contract length | 12, 18, or 24 months typical |
| Setup fee | Sometimes £0, sometimes £50+ |
| Mid-contract price rises | Many providers increase prices annually |
| Speed guarantee | Minimum you’ll actually get |
| Out-of-contract price | What you pay after the deal ends |
The monthly price is often just the starting point. A £25/month deal with 9% annual rises and £50 setup isn’t the same as a £27/month deal with price lock and no setup.
The Mid-Contract Rise Problem
Many broadband providers reserve the right to increase prices mid-contract, usually by:
- CPI inflation + 3-4%, or
- RPI inflation + a fixed amount
With inflation running high, this has meant 8-14% rises in year two of contracts. Comparison sites often show the initial price, not the post-rise price.
Providers that don’t raise mid-contract:
- Now Broadband (price locked for contract)
- Some smaller providers
When comparing, calculate the total you’ll pay over the full contract including likely rises.
Using Multiple Sites
The best approach:
- Check two or three comparison sites
- Also go direct to suppliers’ websites
- Calculate total costs yourself for shortlisted deals
- Factor in mid-contract rises for broadband
Deals available direct from suppliers sometimes don’t appear on comparison sites (especially if the supplier doesn’t want to pay commission).
Cashback and Incentives
Some deals include:
- Cashback from the comparison site
- Gift cards
- Statement credits
- Free equipment
These can be genuine value or marketing tricks. A £50 cashback on a deal that costs £100 more isn’t actually a saving. Calculate the total cost including incentives.
Also check:
- When cashback is paid (sometimes months after switching)
- What conditions apply (might require additional actions)
- Whether it’s from the supplier or the comparison site
Auto-Switching Services
Some services offer to automatically switch you when better deals appear:
- Labrador
- Switchcraft
- Look After My Bills
These can work well for hands-off savings, but:
- They make commission on switches, incentivising more switching
- May not find the absolute best deals
- Some people prefer control over their choices
Worth considering if you never remember to switch manually. Less useful if you want to optimise every detail.
Red Flags
Be cautious of:
- Deals that seem dramatically cheaper than all others
- Suppliers you’ve never heard of (check their financial stability)
- Very short introductory rates that jump after 3-6 months
- Pressure to switch immediately (“deal ends today!”)
- Tariffs with extremely high exit fees
If something seems too good to be true, read the terms carefully.
After Switching
Set a reminder:
- 6 weeks before energy contract ends
- 8 weeks before broadband contract ends
This gives time to compare again and switch before rolling onto expensive out-of-contract rates. The comparison-and-switch cycle never ends if you want to keep saving money.