An electricity tariff is essentially the pricing structure of your contract. It relates to how energy prices are calculated. Let’s take a look at the two main types of electricity tariff in further detail.
Variable tariffs – Variable tariffs are also referred to as standard tariffs, as this is the pricing structure that most clients will automatically be on. It will be your supplier’s default option, so to speak. If you have a variable tariff, the market can influence the amount of money you pay. Therefore, if something happens that causes energy prices to spike, this will be reflected in your bill and you will pay more. The same applies if there is a price movement in the opposite direction.
Some of the benefits of choosing a variable tariff are:
– Variable tariffs offer greater flexibility because your contract does not have a fixed end date, meaning you can end it whenever suits you
– There are no hidden expenses when choosing a variable tariff, as there aren’t any exit fees for switching tariff or supplier
Fixed tariffs – This is the opposite of a variable tariff. This means that you will benefit from a locked-in rate per kilowatt-hour. Therefore, it does not matter what happens in the market, your bill will not be impacted. You will pay a set rate based on usage.
Some of the benefits of choosing a flexible tariff are:
– A fixed tariff can often be more affordable because you are not impacted by any changes in the market
– The certainty that a fixed tariff brings helps you manage your cash flow better because you should know exactly what is coming out of your account every month
– You can have peace of mind knowing that you won’t feel the impact of market volatility
When choosing the right tariff, there is no right or wrong answer. It is all about figuring out what is right for your home. For example, if you aren’t intending to stay at your current premises for very long, there would be no point getting tied into a fixed tariff because you would then be stung with exit fees if you needed to leave your contract early.
How much money will I save if I switch to a different energy supplier?
It is impossible to give you a definitive answer to this question without knowing more about your home. There are a number of factors that will determine your level of savings. This includes your current supplier and the supplier you switch to, as well as the number of employees you have, your efficiency levels, and the size of your business.
Make sure you’re using the likes of a smart home and humidity monitor to check on your home. This will monitor everything from noise to humidity to determine tenant activity and ensure your property is being looked after.
What is a rollover contract?
A rollover contract is one whereby your contract will automatically renew when coming up to the end date. You may not even be notified about this.
Why does my location have an impact on the amount of money I pay?
This is because of a number of factors that impact the price of energy in any given location. Examples include the level of demand and the availability of energy infrastructure in the area.