Energy suppliers are continuously updating tariffs in line with wholesale energy prices. So, it’s important to regularly companies’ energy tariffs to make sure you’re getting a great deal.
At Power Compare, we take the stress away when you switch energy supplier and find great deals on your gas and electricity. Our experts have compiled all the information you need to make an informed decision about your tariff. Keep reading to find the right tariff for your home or business.
Why You Should Compare Energy Tariffs
Energy comparison is the first step to saving money on your gas and electricity. But it is important to understand the different tariffs available how they can help reduce your energy bills.
There are lots of different tariffs to choose from, such as fixed energy tariffs and variable energy tariffs.
There are always new suppliers that will offer comprehensive tariffs and discounted prices to secure a contract. We recommend compare energy suppliers every few months. Consumers who keep their existing tariff contract for a few years could be on their supplier’s default tariff, which is usually the most expensive option.
Energy suppliers use lots of industry jargon, which means that understanding your energy bills and tariff is harder than ever. If you do not understand your tariff, you could be losing money. We help consumers understand the difficult language surrounding tariffs.
What Types of Energy Tariffs Are There?
There are lots of energy tariffs that consumers can choose from. Whether you are a residential homeowner or a business owner, there is a tariff that suits your circumstances.
Fixed Energy Tariffs
This is one of the most common tariffs offered by energy suppliers. As the name suggests, consumers can expect a fixed price throughout the length of their fixed energy tariff contract. It is a common misconception that the overall monthly price of fixed energy tariffs is consistent.
The cost per unit of gas and electricity remains the same every month, but your energy bills may change based on your energy usage. That is why your energy supplier will charge more during the winter months.
- 12 month to 3 years contracts
- Fixed unit price for electricity and gas
- Consumers can lock in low unit prices
- Market fluctuations will not impact your bill
We recommend this type of tariff for homeowners and business owners who use a consistent amount of energy. When you choose fixed energy tariffs, there are no surprises.
Variable Rate Tariffs
Consumers who are on variable rate tariffs should expect their unit price to fluctuate. Unlike fixed tariffs, variable tariffs do not come with a consistent unit rate. This can offer some flexibility for your gas and electricity prices, especially if energy prices are higher than usual at the time you’re shopping around.
- Unit prices might drop
- Flexible contracts
- Usually, no exit fees
Variable rate tariffs are ideal for people who do not want to lock in a fixed price for a year or more. Consumers can take advantage of low market rates on this type of tariff.
Dual Fuel Tariffs
Consumers have a dual fuel tariff if they purchase gas and electricity from the same energy supplier. This makes managing your gas and electricity a lot easier as you’re only dealing with one energy supplier.
- Some energy suppliers offer discounts for loyalty
- Consumers can contact the same customer service desk for different issues
This type of tariff is perfect for people who want to stay with their preferred company for all their energy needs. Whether you need a business energy tariff or a residential tariff, you will need to contact your energy supplier. Dual fuel tariffs streamline the customer service side of operations.
Prepayment Energy Tariffs
Consumers on prepayment energy tariffs pay as they go. Energy suppliers will provide their customers with a token, key, or card. Customers can then put money on their card or key at a local shop or supermarket. Most energy suppliers allow customers to top their energy up online.
- Competitive rates
- You are in control of your energy expenses
- Ideal for landlords
Very few business energy tariffs operate on a prepayment system. We recommend prepayment tariffs for residential homeowners who want to control their consumption. Whereas homeowners can act fast if their money runs out, business owners might experience company-wide losses if their internet goes down.
Economy 7 and Economy 10 Energy Tariffs
These tariffs allow consumers to access lower energy rates during off-peak times. The Economy 7 tariff provides consumers with low rates for 7 hours per night. Different suppliers have different off-peak times. Some suppliers choose 11 pm to 6 am for their off-peak hours, whereas others choose midnight to 7 am.
The Economy 10 tariff offers consumers lower rates for 10 hours a day. Even better, most energy suppliers split these 10 hours into 3 blocks. Consumers can access low rates in the afternoon, evening, and early hours of the morning.
- Consumers who use energy during off-peak times can reduce their monthly bill
- Consumers who have storage heaters can heat their energy at night and take advantage of lower rates
Economy 7 and Economy 10 energy tariffs are not ideal for corporations. People who are looking for business energy tariffs often do not want off-peak deals. Most businesses operate from 8 am to 6 pm, which means that they will not benefit from lower off-peak rates unless they find a suitable Economy 10 tariff.
Economy tariffs might seem too good to be true. It is important to remember that the energy you consume during peak times is more expensive per unit than other types of tariffs. Economy tariffs are only suitable for premises that use more energy at night, such as bars and nightclubs.
Green Energy Tariffs
In recent years, green energy tariffs have become more and more popular. Energy suppliers who offer green tariffs promise to match your usage by generating energy from renewable sources. The energy they generate is fed back into the National Grid.
Solar, hydro, geothermal, and wind are just a few of the renewable energy sources that suppliers use. Not all suppliers will match your entire usage. They might offer a 50% or 75% renewable energy match.
- Eco-conscious option for businesses
- Part of the push towards environmentally friendly services
- Reduces carbon footprint
At Power Compare, we believe in supporting green energy tariffs. This type of tariff is perfect for business owners and residential homeowners who want to make a difference. Business owners can put their best foot forward by choosing a green tariff. Employees and customers are more likely to support organisations that are green.
No Standing Charge Energy Tariff
Each energy supplier will often apply a standing charge to their tariffs. This covers the cost of delivering the actual gas and electricity to your home. However, some energy companies offer tariffs without a standing charge. Energy prices are usually higher on these types of tariffs to cover the shortfall.
- No standing charge
- Most suppliers reduce the per-unit cost after you consume a certain amount of energy
People on a no standing charge tariff might have to pay more per unit of energy. Most suppliers charge more per unit to recuperate the money they lose from having no standing charge.
How to Get a Cheaper Energy Tariff
Thousands of people switch to a more affordable energy tariff every month. Every energy supplier has practices in place for new and existing customers who want to take advantage of better deals.
With energy prices consistently fluctuating, the best way to find great deals on your gas and electricity is usually to switch energy supplier. Energy companies will typically offer favourable energy prices to new customers to sign them up, but often offer them much higher renewal prices.
With our comparison site, it is switch energy supplier. We just need some details from yourself and some information about your gas and electricity usage. This will help our innovative engine find a great energy deal for you. We will compare a large selection of the energy market using our panel of trusted energy suppliers to ensure your gas and electricity is in good hands.
Once you have selected your new energy supplier, we’ll take care of everything else. Your gas and electricity switch is protected by the energy switch guarantee. This ensures your switch goes smoothly and you only pay the unit energy prices that you were offered when you signed up with your new energy supplier.
We just need:
- Your postcode
- The name of your current energy tariff
- The annual energy usage or cost
Your energy supplier will talk you through the rest of the process and help you switch to a better tariff.
How Long Does It Take To Switch Energy Tariffs?
If you are switching to a new supplier for a better energy tariff, you can expect to wait anywhere from 4 to 6 weeks. It does not take as long to switch tariffs with the same supplier.
Suppliers that are members of the Energy Switch Guarantee promise consumers shorter switching periods. Energy UK set up this voluntary scheme to regulate the often difficult and drawn-out switching process.
Here are a few of the rules in the Energy Switch Guarantee.
- Switching is free unless you have cancellation fees to pay.
- It will take no more than 21 days to switch. The only exception to this rule is dual fuel tariffs, which may take longer to implement.
Do not let industry jargon and difficult suppliers slow you down. Switching energy tariffs and suppliers is the easiest way to reduce your monthly energy bill. With our online comparison site, you can find the a great deal to reduce your energy bills in minutes.
At Power Compare, we are committed to finding business owners and homeowners the best deals. Our experts know everything there is to know about energy. Put your details into our comparison site and let us do the hard work. You can find discounted prices and tailored tariffs in under 5 minutes. There is something to suit everyone on our comparison site.