Choosing the right energy supplier involves navigating various tariff options. Understanding these differences is crucial when you Compare Energy Suppliers to find the best deal for your needs. Let’s break down the common types of energy tariffs available.
Fixed Rate Tariffs: Price Certainty
Fixed rate tariffs offer stability by locking in your unit rates and standing charges for the contract duration. This protects you from fluctuations in the wholesale market and price cap changes, providing predictable energy costs throughout your agreement. When comparing energy suppliers, fixed rate tariffs are ideal if you prioritize budget certainty.
Standard Variable Tariffs: Price Cap Considerations
Standard variable tariffs have rates that can change based on the energy price cap. Historically, these were often the most expensive, but market shifts have altered this. As the price cap adjusts, so can your unit rates. When you compare energy suppliers, be aware that standard variable tariffs can offer flexibility but less price predictability compared to fixed rates.
Dual Fuel Tariffs: Combined Convenience
Dual fuel tariffs simplify your energy management by combining your gas and electricity supply with a single provider. This can sometimes lead to cost savings compared to managing separate accounts. To see if this is beneficial, compare energy suppliers for both dual fuel and separate gas and electricity deals.
Green Energy Tariffs: Sustainable Choices
Renewable or green energy tariffs are increasingly popular, with many suppliers offering electricity sourced from renewable sources. While truly renewable gas options are less common, green tariffs allow you to support cleaner energy. Use filtering tools when you compare energy suppliers to specifically explore green energy deals.
Prepayment Tariffs: Pay As You Go
Prepayment tariffs require you to pay for your energy upfront, typically by topping up a meter. These tariffs are often more expensive than credit meter options. However, most energy suppliers will offer at least one prepayment tariff option as part of their range. When you compare energy suppliers, consider if a prepayment option aligns with your consumption habits.
Time-of-Use Tariffs: Optimize Consumption
Time-of-use tariffs, like Economy 7, offer varying unit rates depending on the time of day. Night-time electricity usage is usually cheaper than daytime. These tariffs can be particularly advantageous for electric vehicle owners who can charge their cars overnight. When you compare energy suppliers, explore time-of-use tariffs if you can shift your energy consumption to off-peak hours.
