Home Energy Tariffs Comparison

With fixed price energy tariffs (or fixed rate tariffs), the cost of your energy will remain the same throughout your contract – usually between 12 months and 3 years.

Benefits of a fixed rate energy tariff

• Your payments will not change (depending on your usage)
• Your bills will be predictable
• Cheap deals are often available
• Your bills will not be impacted by energy market price fluctuations
• If you find a tariff you like, you can usually fix your rates for up to 3 years

Considerations

You should bear in mind that although your unit rate is fixed, this doesn’t mean your bills will remain the same each month. The monthly cost of your energy bills will still be dependent on how much gas and electricity you use.

As the rate you pay per unit of gas and electricity is locked for the length of your contract, you will be protected from any price rises. However, if the price of energy falls you won’t benefit from a cut in your unit rate costs.

You should also make a note of your contract’s end date, as failing to switch suppliers or negotiate a new deal could cause you to be placed on a standard variable tariff with more expensive rates.

Who is a fixed rate tariff best suited to?

Fixed-rate tariffs are best suited to households and businesses that have a reasonably consistent rate of energy use and where it is preferred to have a set payment each month. As these tariffs are fixed for a certain period, you should ensure that you are comfortable with entering a contract for the assigned term.

If you choose a variable rate tariff, your unit rate can rise and fall throughout your contract. This will impact your monthly payments and you could therefore end up paying different unit rates each month.

Benefits of a variable rate energy tariff

• You could benefit from lower rates if market prices reduce
• No exit fees - you are free to switch suppliers or tariffs as you please

Considerations

The unit rate you pay will be dependent on the energy markets. This means that if the price of energy falls, you will also benefit from a reduction in your unit rate. However, any increases in the price of energy will also see your energy bills increase.

If you’re comfortable with the prospect of your energy unit costs changing throughout your contract, a variable tariff can be a good option. However, if it’s important to budget for your energy costs, a fixed price tariff can offer you more security.

Variable tariffs often require 30 days’ notice if you want to end the tariff and get a new deal.

Who is a variable rate tariff best suited to?

A variable rate tariff can be suitable for you if you are comfortable with the risk of market price fluctuations impacting your energy bills.

 

A dual fuel tariff simply allows you to switch both your gas and electricity to the same supplier. This can make managing your energy bills easier as you don’t have to deal with two separate accounts or companies.

Benefits of dual fuel energy tariffs

• Dual fuel discounts - Some suppliers will offer a discount to customers switching to a dual fuel tariff
• Makes managing your gas and electricity accounts easier

Considerations

When comparing energy prices for this type of tariff, you should look out for suppliers that offer dual fuel discounts. Don’t be afraid to ask if the discounts aren’t highlighted.

Additionally, rectifying issues (with meters, usage, or billing) can be easier when you’re on a dual fuel tariff as you will only have to deal with one energy supplier.

Who is a dual fuel tariff best suited to?

Dual fuel tariffs are best suited to occupants who prefer to have all their energy deals in one place for added convenience.

 

With a prepayment energy tariff, your gas and electricity will operate on a ‘pay as you go’ system.

You will top up your prepayment meter using tokens or a ‘key’. The most common way to do this has been to take the token, key or smartcard to a newsagent to be topped up. In recent years, more suppliers have introduced top-ups online via a website or app.

Benefits of a prepayment energy tariff

• You can control how much you spend on energy
• For landlords, this tariff can help to ensure that tenants keep up with their bills
• Deals are becoming more competitive

Considerations

Prepayment tariffs are often a more expensive option than monthly billing and will require more monitoring to ensure you remain in credit. If you run out of credit, your electricity supply may be cut off; although some homes have access to emergency credit.

Also, there tend to be fewer tariffs available for prepayment meters, so you may not have access to the best deals.

Who is a prepayment tariff best suited to?

Prepayment meter tariffs are best suited to those who want to have more control over what they spend on their energy. Although, it can be said that a more effective way of doing this is to get a new fixed rate tariff with cheaper rates, then getting a smart meter installed to monitor energy usage.

 

Sometimes referred to as time of use tariffs, Economy 7 and Economy 10 plans offer cheaper energy during certain hours of the day.

An Economy 7 energy tariff offers a lower unit rate for electricity seven hours each night. The exact off-peak times will vary depending on your supplier but might be 11 pm to 6 am or 12 midnight to 7 am.

As the name suggests, an Economy 10 tariff offers a lower unit rate for 10 hours over a day. These off-peak hours are often split into three blocks in the afternoon, evening and overnight. Economy 10 tariffs are not as common as Economy 7 tariffs and are not offered by all suppliers.

Benefits of Economy 7 & Economy 10 tariffs

• You can make the most of cheaper energy rates at certain times of the day. For example, storage heaters can use energy during the night to provide heat in the day.
• These can be the best options if most of your electricity use takes place during the night.

Considerations

If you use most of your electricity during off-peak hours, a time of use tariff could help you reduce your energy bills. However, you should bear in mind that the electricity you use during peak hours will likely be charged at a higher rate than other tariffs.

Who is an Economy 7 & Economy 10 tariff best suited to?

As previously mentioned, Economy 7 and Economy 10 meters can be effective in homes that have storage heaters. For businesses, they can be useful for establishments such as nightclubs and bars where energy is primarily used during the night.

 

When you switch to a green energy tariff, your supplier will promise to match all or some of your energy usage with energy generated from renewable sources.

This renewable energy is fed back into the National Grid, so as more people switch to green energy tariffs, a higher percentage of the national supply will be from renewable sources.

Benefits of green energy tariffs

• Can help to reduce your carbon footprint
• Provides a way for you to do your bit for the environment
• Can be a positive selling point for businesses

Considerations

Green energy tariffs have built a reputation for being expensive, however this is not always the case. Following a drop in the cost of producing renewable energy, green tariffs are now some of the most affordable options on the market.

Who is a green energy tariff best suited to?

Green energy tariffs are suitable for everyone, especially those who are environmentally conscious and want to help combat climate change.

 

Your standing charge is a daily fee added to your energy bill which remains the same no matter how much energy you use. The fee covers the cost of your energy supplier delivering gas and electricity to your property.

With a no standing charge tariff, this daily fee will be set to zero. This means that if you don't use any gas or electricity that day, you'll face no charges from your energy supplier.

Benefits of a no standing charge tariff

One of the main benefits of a no standing charge tariff is that you will only pay for the gas and electricity you use. 

If you have low energy usage or you use energy infrequently, you could save money with a no standing charge tariff.

This tariff can be especially useful for holiday homes and businesses which operate seasonally or at and weekends.

Considerations

No standing charge tariffs can include higher unit rates than a standard fixed tariff. So, if you use a lot of gas and electricity, you may not see the benefit of avoiding standing charges.

Before switching to a no standing charge tariff it's important to consider how you use energy. With Love Energy Savings, you can view the full estimated cost of your energy bills on a new tariff based on your current usage.

Who is a no standing charge tariff best suited to?

A no standing charge tariff is best suited to those with lower energy usage and those who don't want to receive charges when they are not using gas and electricity.