Why finding the right tariff is so important
Like anything else in life, everyone has their own way of doing things, it’s no different when you’re choosing how you use your energy and how you want to pay for it to your supplier. With wholesale gas prices on the rise, now is the time to choose the energy tariff that suits you, so you can stay on top of your bills.
What tariffs are there?
Since energy companies strive to make billing for individuals and businesses easier, many different types of tariffs are available to customers.
Here are the different types of energy tariffs and what they can do for you as a customer.
Standard Variable tariff
The standard tariff is known as the most expensive tariff out there. Prices can change at the will of the supplier, they typically match them to the price of wholesale gas units, these will continue to increase across the globe.
Standard energy tariffs are available for both gas and electricity bills, luckily, there is a price cap to prevent the tariff prices from becoming too expensive. This is because of the energy crisis and Ofgem has realised the threat of putting many in the UK into energy poverty is currently higher than it has been in recent history.
If you switch energy supplier or into a new property, you will typically be placed on this tariff as it is the standard for all customers. Luckily, if you are on a standard tariff and want to switch providers, you will not be asked to pay exit fees since those on the tariff don’t have to.
Fixed energy tariff
These tariffs are great for consumers as they let you pay a fixed rate on your bills throughout your contract that you agree to. You will enter a contract agreement with the supplier and can usually get a good price on your tariff as they may offer the contract as a dual-fuel deal.
Despite the attractive tariff rate, if you decide to use more energy than agreed, your bill will go up in price as it will be matched to the standing charge and the rate of the energy being used.
Some fixed rate tariffs will require you to pay an exit fee if you decide to leave it earlier than is agreed in your contract. However, Ofgem has allowed it that if you decide to switch contracts 42-49 days before your contract ends, you can’t be forced to pay an exit fee.
Dual fuel tariff
Dual energy tariffs are effective for most customers as they are a combined contract of both gas and electricity to a property. Some companies will even give you a nice deal by signing up to this tariff as it streamlines billing and energy into one place.
You can get dual fuel tariff rates on a standard, fixed and online tariffs offer dual fuel and it is the most common energy combination in the UK.
Depending on your contract will determine whether you will have to pay an exit fee. It is important to note the conditions of your contract to see if you will have to if you decide to switch suppliers sooner than when your contract ends.
Even though you will probably be entitled to many discounts by having a dual fuel tariff, there may also be discounts for keeping your supplies separate. It is always worth keeping an eye out for where you can make the most savings.
Online energy tariff
Online energy tariffs are all managed by the customer online and are often the cheapest option available. You will be asked to manage everything regarding your bills online, such as sending meter readings and receiving billing statements via the internet.
You may be asked to pay an exit fee if you want to switch supplier tariffs but this all depends on the conditions of your contract.
Like the system in place, if you need any help with your bills or energy supply, you will be able to get help via messaging services and online chats with energy suppliers.
Prepayment meter tariffs are also known as ‘top up’ meter tariffs and have limited options for customers. Those who use them top them up by using prepay tokens, cards or keys. These ways to pay can be purchased from shops and online as they are a common way for people to pay their energy bills.
They’re a unique way to pay for your bills as you pay for your tariff before you actually use it.
Unfortunately, some suppliers won’t have any options for prepayment meter tariffs and so you will have to be very selective with who you decide to go with. And whether you can leave your contract early will depend not only on your conditions but also the debt you may be in.
‘Green’ energy tariff
Green energy tariffs either use a full renewable source for your power or a mix of renewable and non-renewable sources. Depending on what is used to power your building, the price will match the type of energy you are using. There are also options to use nuclear-free and carbon offsetting tariff deals when you sign up for them.
It’s always best to see what your supplier provides in terms of green energy. Lots of companies are aiming to increase their options for renewable energy tariffs for their customers to use.
If you are concerned about the environment, then this contract is for you as you can rest assured that your energy is coming from a less wasteful place. If you want to leave your contract, you may have to pay an exit fee but you will need to know the terms of your contract to find this out.
The bottom line:
Whatever tariff you want to switch to, make sure you do it with Bright Utilities. You will be met with experts in the field who will walk you through what’s available to get you the best prices to suit your energy needs.
You can also see the competitive prices to help determine your decision to make sure you get the best deal.
There are many options out there so choosing the right one is important as you don’t want to be tied down to an energy tariff you end up unhappy with.
If you are unhappy with your energy tariff, look here for help with your exit fees: https://www.energyhelpline.com/help/how-do-i-avoid-exit-fees-when-switching-energy