Before you start trying to compare energy tariffs to find the best deal for your household, it’s a good idea to make sure that you fully understand energy tariffs and all the different variations you can find. The truth is that there are a wide variety of different types of energy tariffs, and what works for your neighbors or friends may not be the best option for you. Here we’ll break down energy tariffs, what they are, and how to find the best choice for your family.
The Standard Tariff
The standard tariff is the regular tariff that your supplier has, or the “default” one. It’s sometimes listed as an “evergreen” tariff by your energy supplier. If you compare energy tariffs and find one you prefer, you should not be charged a fee for leaving a standard fee as the contract has no set end date. This type of tariff is a good idea if you want to be able to be flexible with your energy company, but it’s important to note that, generally, the standard tariffs are not the most affordable ones you’ll be able to find.
The Fixed Energy Tariff
The fixed energy tariff has guaranteed standing charges, and guaranteed unit rates, until a specific end date. If you choose to leave a fixed energy tariff you may have some sort of exit fee. Some energy companies require an exit fee if you leave before the contract is complete. If, however, your contract is complete you can leave with no fee, and thanks to the Ofgem rules, you can now switch your energy provider anywhere from 42 to 49 days before the end of your contract and you will not be charged any fees. Keep in mind that while you’ll be able to only deal with one supplier, you may not see any savings if you use dual suppliers (one for your electricity, one for your gas), so make sure you look at the fine print of this option.
Pre-Payment Tariffs
Pre-payment tariffs are the best option for someone who wants to manage their finances very specifically. Unfortunately, pre-payment tariffs are fairly well known for being the most expensive type of way to pay for your gas and your electricity. So if you want to invest in a prepayment meter and to work with a company that allows for this, in order to keep strict control of your budget, this is what you’d look for.
Green Tariffs
Green tariffs are the ideal option for someone who is worried about making sure their environmental footprint is as small as it can be. It’s a situation where the supplier will promise to mix your usage with renewable sources of energy, or they may just promise to contribute to environmental companies in your name. While this may be perfect if you’re someone who really cares about making an impact on the global world, it can also be a bit more expensive to switch to.