Heat Pump Electricity Tariffs: Best Deals for Lancashire Homeowners
Choosing the right electricity tariff for your heat pump can save Lancashire homeowners £200-400 per year compared to a standard variable tariff. Heat pump-specific tariffs offer cheaper overnight electricity (when most heating systems run hardest), and some provide discounted rates during the day for heat pump consumption. With electricity making up the vast majority of a heat pump’s running cost, your tariff choice is second only to the heat pump’s efficiency in determining your annual bills.
Why Heat Pump Tariffs Exist
Energy suppliers offer heat pump tariffs because heat pumps shift electricity demand in ways that benefit the grid. A well-controlled heat pump can pre-heat a home overnight (when grid demand is low and wind generation often exceeds demand) and coast through the morning peak without needing to draw heavily from the grid. This load-shifting reduces pressure on the electricity network during peak hours and allows suppliers to pass on some of the wholesale cost savings.
Most heat pump tariffs work on a time-of-use basis, offering cheaper electricity during off-peak hours (typically midnight to 7am) and sometimes a mid-range rate during shoulder periods. Some tariffs require a smart meter, while others require specific heat pump or smart charger hardware to verify eligible consumption.
Best Heat Pump Tariffs Available in Lancashire (Autumn 2025)
Several tariffs stand out for Lancashire heat pump owners. Here are the main options available as of October 2025.
Octopus Cosy is specifically designed for heat pump homes. It offers three rate periods: a cheap overnight window (midnight to 7am at approximately 10p per kWh), a slightly cheaper afternoon window (1pm to 4pm at approximately 12p per kWh), and a standard rate at other times (approximately 27p per kWh). For a Lancashire heat pump home using 5,000 kWh per year for heating, scheduling the majority of heating into the two cheap windows saves approximately £300-400 per year compared to a flat-rate tariff.
Octopus Intelligent Go works with compatible heat pumps and smart home systems to optimise charging and heating automatically. The system tells Octopus when your heat pump needs to run, and Octopus schedules the cheapest possible time slot. Rates are similar to Cosy but with greater flexibility in the cheap window allocation. This tariff requires a compatible heat pump and smart thermostat.
OVO Heat Pump Plus offers a dedicated lower rate for heat pump electricity via a second meter or smart meter separation. The heat pump rate runs at approximately 15-17p per kWh around the clock, compared to the standard household rate. This approach is simpler than time-of-use management but requires either a second meter or smart meter with heat pump identification.
EDF GoElectric Heat provides a fixed off-peak window with competitive rates, well-suited to heat pumps and EVs. The 7-hour overnight window at approximately 9-11p per kWh offers some of the cheapest electricity available for heating, though daytime rates are correspondingly higher at 28-30p per kWh.
How to Make the Most of Off-Peak Rates
Maximising savings from a heat pump tariff requires scheduling your heating to run as much as possible during the cheap-rate periods. Modern heat pumps with weather compensation controls make this straightforward.
The key technique is thermal storage: heating your home to a comfortable temperature during the cheap overnight window, then allowing it to coast through the day on stored heat. A well-insulated Lancashire home heated to 20-21 degrees by 7am will typically maintain 18-19 degrees until mid-afternoon without any further heating input. If your tariff includes a cheap afternoon window, a short heating boost can then maintain comfort through the evening.
Hot water can also be scheduled for off-peak heating. Set your heat pump to heat the cylinder during the cheapest overnight hours, providing hot water for the full day. A well-insulated 250-litre cylinder loses less than 1 degree per hour, maintaining usable hot water well into the evening from a single early-morning heating cycle.
Homes with underfloor heating benefit most from this approach because the concrete screed acts as a massive thermal store, absorbing heat overnight and releasing it slowly throughout the day. Even homes with radiators can use this strategy effectively if the property is well insulated.
Do You Need a Smart Meter?
Most time-of-use tariffs require a smart meter, and some specifically require a SMETS2 meter (the current standard). If you still have an older mechanical meter or a SMETS1 smart meter, contact your supplier about upgrading. Smart meter installations are free and typically take 30-60 minutes. Lancashire is well-covered by smart meter installation appointments, with most suppliers able to schedule within 2-4 weeks.
A smart meter is essential for accurately tracking your time-of-use consumption. Without one, you cannot verify that your heating is running during the cheap periods, and your supplier cannot bill you on the correct rates. The in-home display that comes with a smart meter shows your real-time consumption and cost rate, making it easy to check that your heat pump is operating during the intended windows.
Comparing Tariffs: A Worked Example
Consider a Lancashire three-bedroom semi with a heat pump using 4,500 kWh per year for heating plus 3,500 kWh for general household electricity (8,000 kWh total). Here is how different tariffs compare.
Standard flat-rate tariff at 24p per kWh: total annual cost £1,920. Octopus Cosy with 70% of heat pump use during off-peak windows: estimated annual cost £1,420-1,550. EDF GoElectric Heat with 60% of heat pump use overnight: estimated annual cost £1,350-1,500. OVO Heat Pump Plus at 16p for heat pump, 24p for household: estimated annual cost £1,560.
The savings compared to a flat-rate tariff range from £370-570 per year depending on the tariff chosen and how effectively you shift consumption to cheap periods. Over 10 years, that is £3,700-5,700 in savings just from choosing the right tariff – more than the cost of many heat pump installations after the government grant.
Things to Watch Out For
Higher peak rates are the flip side of cheap off-peak electricity. If a significant portion of your non-heating electricity use falls during peak hours (cooking dinner, evening entertainment, working from home), the higher peak rate may partially offset your heating savings. Calculate your total bill across all time periods, not just the heating component.
Exit fees and contract terms vary between tariffs. Some heat pump tariffs are fixed for 12-24 months with exit fees of £50-100 per fuel if you leave early. Others are variable with no exit fees but less price certainty. Match the contract terms to your circumstances and risk tolerance.
Standing charges are often overlooked when comparing tariffs. A tariff with marginally cheaper unit rates but a higher standing charge (40-50p per day versus 25-30p per day) may not deliver the savings it appears to offer. Always compare the total annual cost including standing charges.
Can I use a heat pump tariff if I also have an EV?
Absolutely – in fact, combining heat pump and EV charging on a time-of-use tariff maximises your savings. Both systems benefit from cheap overnight electricity, and the combined load makes time-of-use pricing even more attractive. Some tariffs like Octopus Intelligent Go are specifically designed to handle both heat pump and EV scheduling, optimising electricity use across both systems automatically.
What if my heat pump needs to run during peak hours on cold days?
On the coldest Lancashire days, your heat pump may need to run during peak-rate hours to maintain comfort. This is normal and expected. The savings from off-peak rates across the full heating season far outweigh the occasional peak-rate top-up. A well-insulated home minimises the need for daytime boosting, and weather-compensating controls automatically manage this balance. Do not sacrifice comfort to save a few pence during cold spells.
How often should I review my electricity tariff?
Review annually at a minimum, and whenever your energy use patterns change significantly. The heat pump tariff market is evolving rapidly, with new products launching regularly. What was the best deal six months ago may not be the best today. Use comparison tools that specifically account for time-of-use patterns, and factor in your actual consumption data from smart meter readings for the most accurate comparison.
