You may have heard about energy tariffs, but what are they and what can they do for you? An energy bill is a complicated document that details how much energy you’re using each month. The energy tariffs that you sign up for will affect the amount of money you’ll spend each month. Some bills will charge a fixed rate for the first block of energy you use, while others will charge a variable rate for every additional block. In some cases, a supplier may charge a higher rate for the first block of energy used, and a lower rate for the second block of usage.
Most people will agree to sign up for a fixed tariff, which guarantees a certain price for an agreed period of time. The fixed tariffs are usually one to two years, and they allow customers to lock in a low price by signing up for a longer term. These are generally better deals if you choose a dual fuel plan, although single fuel deals are also available. Depending on your needs, some energy providers will offer smart home tech or boiler insurance as extras.
Fixed tariffs are similar to a standard variable tariff, but they require you to manage your account online. You can usually find an electricity or gas fixed tariff that offers a discount on the monthly bill. You’ll have to send your meter readings online to your energy supplier, and you’ll receive your bills electronically. The best part about these deals is that you’ll avoid paying a cancellation fee, and all the paperwork that comes with it.
Standard Variable Tariff
Many people sign up for a standard variable tariff, which tracks the market rate for energy. The standard variable tariff is more expensive than a fixed rate, because you’ll have to pay for the price increase every few months. Typically, these fixed tariffs are cheaper than their equivalents on the standard variable tariff, but you may end up being stuck on a tariff for years and not know when the price is going to fall. Most suppliers charge an exit fee when you switch to another tariff.
Besides the standard variable tariff, there are other types of energy tariffs that you can sign up for. In the case of a standard variable tariff, the price of your energy will change according to the market rate. Fortunately, these types of tariffs are flexible and can be switched anytime you want. So, you’ll never have to worry about your bills ever going up again! You’ll be able to change your provider whenever you want.
Generally, fixed tariffs offer lower prices than variable ones. Some are ‘paperless’, which means you can send your meter readings online. While you might be able to save money with these tariffs, you’ll need to make sure you’re aware of any fees that may be associated with them. You’ll also need to compare the costs of the various plans in terms of monthly payments. There are plenty of companies offering fixed tariffs, but it is important to make sure you choose the best one for your needs.