When it comes to handling the expenses related to running a household, energy expenses are definitely at the top of the list. They can be quite large and intimidating, but don’t panic! You have more control than you may think over your energy expenses—because it’s not all fixed in stone. Understanding the choices you have, and making sure you’re on the best plan for your needs and budget, can save you big bucks. By learning here about the various types of energy tariffs and what to look for in each, you’ll be able to compare effectively and make the right pick.
1. Standard Variable Rate (SVT)
When your current energy plan ends, the Standard Variable Tariff is usually the plan you’ll be moved to. This is the go-to plan offered by most suppliers. While Standard Variable Tariffs have historically been some of the most expensive available, recent changes in the energy market have changed this somewhat. These tariffs are policed by the energy regulator, Ofgem, and are subject to a price cap that the regulator sets, to ensure you’re protected from excessive hikes in prices per unit of energy used. By comparing how Standard Variable Tariffs measure up to others out there, you can make sure you’re not paying more than you need to for gas and electricity.
2. Fixed Rate
Choosing a Fixed Rate Tariff implies the locking in of energy rates for a set time. A standing charge and unit rate would be consistent under this tariff, giving you a price stability in energy billing even if your usage varies. Fixed rates fit neatly into a household budget. Plus, they could protect you from potential rate rises. However, be aware that you will not benefit from price cuts while you are tied to this deal. To discover the right time to fix, always investigate and compare energy rates.
3. Pre-Payment
Prepayment energy tariffs necessitate you to make payments for your energy prior to utilization. This necessitates a meter in your home that is of a prepaid nature and entails the topping up of cards or keys, capable of being uploaded with credits over the internet, phone, or any local outlet. This type of billing for energy usage assists in tracking and controlling excessive power spending. This mode of billing becomes a better alternative for anyone intending to have charges effectively estimated before usage. An admonition to those under this billing plan is to always go through the best prepayment terms of any energy deal they may decide to opt for.
4. Dual Fuel Tariff
By signing up for a Dual Fuel Tariff, you can get both gas and electricity from one supplier rather than having separate suppliers for each. This can be cheaper as generally, most energy suppliers extend discounts when you opt for a combination of gas and electricity.
These perks include:
- Money back
- A fixed amount or percentage off your bill
- A reduced price for each kilowatt hour
- Or a cheaper standard tariff
If you have been loyal to the same energy supplier for an extended period of time, it’s likely that you are on their default tariff. By examining the dual fuel and individual gas and electricity tariffs, you may be able to secure not only cheaper energy, but also a better value for that power you have been using.
5. Green Tariffs
By opting for Green Power, you guarantee that your energy comes from environmentally friendly sources. Even when this kind of power isn’t the least expensive option, it provides a lasting alternative to traditional power sources. If you’re particularly interested in lowering your carbon footprint, then this might be the best power pick for you. Measure your choices by evaluating a green-powered energy plan that will eventually be the most cost-effective and beneficial scheme for you.
5. Economy 7 Tariffs
Economy 7 Tariffs are an affordable choice for people who use the bulk of their power at night. They offer seven hours of cheaper night rates and 17 hours of pricier daytime rates. These plans necessitate a unique meter that can monitor electricity consumption during different periods. To get the most out of your cash, make sure to look closely at different energy plans offering Economy 7 rates.
By making a well-informed decision on your energy plan, you have the potential to save significantly and impact the environment of your home. For more in-depth research and to compare the newest agreements, explore our extensive selection. Always remember that the needs of each home differ from any other.
