Setting Up Energy in Your First Home: 2026 Guide

LAST REVIEWED 2026-09-06

How do I set up energy in the first home in 2026?

Setting up energy in a first home in 2026 involves a few key steps: reading the meter, identifying the supplier, and understanding the deemed contract. The process is straightforward but requires attention to detail.

On moving day, locate the electricity and gas meters. Record the readings, including any digital displays. This provides a baseline for billing. If the property is new, meters may be smart or traditional.

Next, find out who supplies the energy. Use the national database or contact the previous occupant or landlord. The supplier will place the property on a deemed contract, which is a default tariff. Ofgem caps these rates, so the cost is regulated.

Check the meter readings against the first bill. Ensure the bill reflects the actual usage from the move-in date. If there are discrepancies, contact the supplier promptly.

Consider whether to switch to a different tariff or supplier. Compare deals online, but be aware of exit fees and notice periods. The price cap provides a safety net, but fixed deals might offer savings.

Finally, set up payments, either by direct debit or prepayment. Direct debit often offers lower rates. Keep records of all communications and readings for future reference.

What should I do on day one to set up energy?

On day one, the priority is to read the meter and find the supplier. This ensures accurate billing from the start. Without a reading, the supplier may estimate usage, leading to overcharges.

Locate the meters: electricity meter is often in a cupboard or outside; gas meter may be similar. For smart meters, take a reading from the in-home display or the meter itself. Note the numbers carefully.

Contact the supplier identified from the property. Provide the move-in date and the meter readings. The supplier will set up an account and send a welcome pack. If the supplier is unknown, call the national helpline or use the online lookup.

If the property is new, the developer may have arranged a temporary supply. Confirm the supplier and tariff. For existing properties, the previous occupant's supplier continues until changed.

Take photos of the meters as evidence. This helps resolve disputes. Also, check for any safety issues, such as gas leaks, and report immediately.

Finally, consider setting up a direct debit for payments. This often provides a discount. Keep a record of the account number and contact details.

How do I find out who supplies the energy?

Finding the current energy supplier for a property is essential. In the UK, the supplier is determined by the property's location and the national grid connections. There is no choice of network, but the supplier can be identified.

Use the official Energy Networks Association lookup service. Enter the postcode to see the distribution network, but not the supplier. For the supplier, contact the previous occupant or landlord. If unavailable, call the Meter Point Administration Service (MPAS) for electricity or the gas transporter for gas.

Alternatively, check any bills or letters left at the property. The supplier's name and contact details are usually on these. If the property is new, the developer may have arranged a temporary supply with a specific supplier.

Once identified, contact the supplier to set up an account. Provide the move-in date and meter readings. The supplier will confirm the tariff and start billing.

If the supplier cannot be found, the property may be on a deemed contract with a supplier assigned by the network. This is rare but possible. In such cases, contact the network operator for guidance.

Consider switching to a better deal after setting up.

What is a deemed contract and how does it affect the energy bills?

A deemed contract is a default arrangement when a property has no active supply contract. It applies when a new occupant moves in without choosing a supplier or tariff. The supplier continues to supply energy under standard terms.

Deemed contracts are subject to Ofgem's price cap. This means the rates charged are within the cap limits. For a typical dual fuel household, the cap sets an annual bill of £1,663 for Jul-Sep 2026, rising to £1,723 for Oct-Dec 2026.

The deemed contract may have higher standing charges than other tariffs. However, the cap limits the maximum daily charge. For electricity, the average standing charge is 54.8p per day, and for gas, 29.7p per day, as per the Q4 2026 cap.

Being on a deemed contract does not prevent switching. The occupant can switch to a different supplier or tariff at any time. There are no exit fees for deemed contracts, but notice periods may apply.

To avoid overpaying, compare deals and switch if a cheaper option exists. The price cap provides a safety net, but fixed deals might offer savings.

Check the first bill to ensure the deemed contract rates are applied correctly. If not, contact the supplier.

How does the energy price cap affect the first home energy costs?

The energy price cap sets a maximum rate per kWh and standing charge for default tariffs. It applies to deemed contracts and standard variable tariffs. The cap is reviewed quarterly by Ofgem.

For a typical dual fuel household paying by direct debit, the cap sets an annual bill of £1,663 for Jul-Sep 2026. This rises to £1,723 for Oct-Dec 2026, an increase of 4%. The cap is not a cap on total bills, but on unit rates and standing charges.

Standing charges under the Q4 2026 cap average 54.8p per day for electricity and 29.7p per day for gas. These charges cover the cost of connecting to the grid and maintaining the network.

The cap includes VAT at 0% for electricity until 31 Mar 2027, and 5% for gas. This reduces the overall cost.

For a first home, the cap provides certainty that the deemed contract rates are not excessive. However, the actual bill depends on usage. A typical household uses 2,500 kWh of electricity and 9,500 kWh of gas per year.

To manage costs, consider energy efficiency measures such as insulation. This can reduce consumption and lower bills.

What are the typical standing charges for energy in 2026?

Standing charges are daily fixed costs for energy supply, regardless of usage. They cover the cost of maintaining the grid and providing customer service. In 2026, under the Q4 cap, the average standing charge for electricity is 54.8p per day, and for gas, 29.7p per day.

For a dual fuel household, the combined standing charge is 84.5p per day. This is a significant portion of the typical bill.

Standing charges vary by region and payment method. Direct debit customers often pay lower standing charges than prepayment customers. The cap sets a maximum, but suppliers may charge less.

VAT is applied to standing charges: 0% for electricity until 31 Mar 2027, and 5% for gas. This reduces the effective cost.

When comparing tariffs, consider both the unit rate and the standing charge. A lower unit rate may be offset by a higher standing charge.

For a first home, understanding standing charges helps in budgeting. Check the bill to see the daily charge applied.

How can I switch energy suppliers or tariffs in the first home?

Switching energy suppliers or tariffs is a straightforward process. It can be done online or by phone.

Before switching, compare deals using comparison websites. Consider the unit rates, standing charges, and any exit fees. The price cap provides a benchmark, but fixed deals might offer savings.

To switch, provide the new supplier with the property details and current meter readings. The new supplier will contact the old one to arrange the transfer. There is no interruption in supply.

If the property is on a deemed contract, there are no exit fees. However, if on a fixed tariff, check for exit fees. These can be up to £25 per fuel.

After switching, the new supplier will send a final bill from the old supplier. Ensure the meter readings are accurate to avoid overcharging.

Consider switching to a green tariff that uses renewable energy. This may support sustainability goals.

What should I check on the first energy bill?

On the first energy bill, check the meter readings, tariff rates, and charges. Ensure the readings match those taken on move-in day. If not, contact the supplier.

Verify the tariff name and rates. The unit rate per kWh and standing charge should be within the price cap. For a typical dual fuel bill, the annual amount should be around £1,663 to £1,723, depending on the period.

Check the payment method. Direct debit may offer a discount. Ensure the bill reflects the correct payment frequency.

Look for any additional charges, such as VAT. Electricity VAT is 0% until 31 Mar 2027, and gas is 5%.

If the bill is estimated, provide actual readings. This ensures accurate billing.

Keep the bill for records. It shows the account number and supplier contact details.

How can I improve home insulation to reduce energy costs?

Home insulation is a key factor in reducing energy consumption and costs. Proper insulation keeps heat in during winter and out during summer, reducing the need for heating and cooling.

Common insulation measures include loft insulation, cavity wall insulation, and solid wall insulation. Draught-proofing windows and doors also helps. These measures can reduce heat loss significantly.

The cost of insulation varies. Some measures may be eligible for government schemes, such as the Energy Company Obligation (ECO). This provides free or subsidised insulation for eligible households.

For a first home, check the existing insulation levels. Loft insulation should be at least 270mm thick. Cavity wall insulation is common in homes built after the 1920s.

Insulation not only reduces bills but also increases comfort. It can also reduce carbon footprint.

Consider professional assessment to identify the best measures. The Energy Performance Certificate (EPC) provides recommendations.

What renewable energy options are available for a first home?

Renewable energy options for a first home include solar panels, heat pumps, and green tariffs. These reduce reliance on fossil fuels and lower carbon emissions.

Solar panels generate electricity from sunlight. They can be installed on roofs and may reduce electricity bills. The cost of installation is significant, but savings over time can offset it. The Smart Export Guarantee pays for excess electricity exported to the grid.

Heat pumps, such as air-source or ground-source, provide heating and hot water efficiently. They use electricity but are more efficient than gas boilers.

Green tariffs are supplied by energy companies that source electricity from renewable sources. They may cost slightly more or less than standard tariffs.

For a first home, consider the upfront costs and long-term savings. Government incentives can reduce costs.

Check the property's suitability for renewables. Solar panels require suitable roof space and orientation. Heat pumps require space for the unit.

Glossary: the terms on an energy bill explained

Deemed contract: A default energy supply contract when a property has no active agreement. Rates are capped by Ofgem.

Energy price cap: A limit set by Ofgem on the maximum unit rate and standing charge for default tariffs.

Standing charge: A fixed daily cost for energy supply, covering network maintenance and customer service.

Typical Domestic Consumption Values (TDCV): Standard annual usage figures used for comparison: 2,500 kWh electricity and 9,500 kWh gas.

Smart Export Guarantee (SEG): A scheme paying households for excess electricity exported to the grid from solar panels.

Frequently asked questions

How do I find out who supplies the energy when I move in?

To find the supplier, check any bills left at the property or contact the previous occupant. If unavailable, use the national database or call the Meter Point Administration Service for electricity and the gas transporter for gas. The supplier will be listed on the property's records. Once identified, contact them to set up an account and provide meter readings.

What is a deemed contract and how does it affect the bills?

A deemed contract is a default arrangement when you move in without choosing a supplier. It means the existing supplier continues to supply energy under standard terms. The rates are capped by Ofgem, so you won't be overcharged. You can switch to a different tariff or supplier at any time without exit fees.

What is the energy price cap for 2026?

The energy price cap for a typical dual fuel household paying by direct debit is £1,663 per year for July to September 2026. It rises to £1,723 for October to December 2026, an increase of 4%. The cap is reviewed quarterly by Ofgem.

How much are standing charges in 2026?

Under the Q4 2026 cap, the average standing charge is 54.8p per day for electricity and 29.7p per day for gas. For dual fuel, the combined charge is 84.5p per day. These charges are fixed daily costs regardless of usage.

Can I switch energy supplier if it is on a deemed contract?

Yes, you can switch at any time. There are no exit fees for deemed contracts. Compare deals to find a cheaper tariff. The new supplier will handle the transfer, and there is no interruption in supply.

What should I do if the first bill is estimated?

If your first bill is estimated, provide actual meter readings to the supplier. This ensures accurate billing. Take readings on move-in day and submit them. If the bill is still incorrect, contact the supplier to dispute it.