How To Choose The Right Energy Tariff

energy tariff

With everyone looking for ways to reduce energy bills, switching to the right energy tariff or provider can help you save lots of money. It’s however advisable to look into the specifics (with both the tariff and the provider) before making the switch. Outlined below are a few options and considerations to make when shopping for an affordable energy tariff.

  1. Capped or Fixed Tariffs (Cheaper Option)

It would be best to choose between a ‘capped’ or ‘fixed’ tariff if working on a budget or don’t mind signing a contract (12-month contract).   By doing this, your energy bills won’t change unless you use more or less energy.

The main idea and advantage of going for a fixed/capped tariff is that your bills will be the same each month. This could help you budget your money even better. You could choose to pay by Direct Debit for convenience purposes.  You however should sign up for this tariff if planning to stay with the supply throughout the contract period. A service fee is applicable should you choose to change tariff or supply before the contract expires. The best way to find what works is to look for the best energy deals.

  1. Standard or Variable Tariff ( If planning to move)

If you don’t wish to be tied to a tariff or supplier through a contract, then the variable tariff may come in handy. This plan allows consumers to jump from one tariff to another, and even switch supplies without attracting a fee. Such flexibility, however, comes at a cost. Variable tariffs are considerably more expensive than fixed ones.

  1. Use a Smart Meter

You could also switch to suppliers using smart meters too. You may, however, be required to send meter readings to stay connected, as well as ensure they are efficient too. The best thing about smart meters is that you can switch to ‘prepayment mode’ whereby you only get to top up energy units. Switching to a new supplier is also relatively easy with prepaid smart meters.

  1. Consider Economy Or Multi-Rate Tariff

For those that only need energy at night, the economy or multi-rate tariff could help you save some money. This tariff allows consumers to pay less for electricity used at night, but a bit more during the day. Individuals using electric storage heaters will find this tariff quite appealing. This tariff isn’t however recommended for individuals that use lots of energy during the day.

  1. If With a Prepaid Meter

If working with a prepaid meter, you then are restricted to prepayment tariffs alone. In other words, you have to pay for units to use electricity. One of the disadvantages of prepayment tariffs is they usually cost more. Prepayment tariffs are also limited hence not many to choose from.

Unless you are indebted to your current supplier, decide whether the tariff is good for you or not. Some people find it better using a normal meter than the prepaid one.  The other advantage of having a standard meter is you never have to be worried about units running out before your next paycheck.

  1. Green Tariff

If looking for an energy tariff that reduces your carbon footprint, then using power generated from solar or wind energy would be your best choice. Green tariffs are however more expensive than other tariffs in the market.

Several factors and considerations have to be made when choosing a green tariff. Some of the essentials to look for include:

  1. How much energy is produced/needed?
  2. If the supplier contributes to environmental schemes
  3. Whether you can generate your energy.

Using energy from renewable sources such as the sun and wind can help generate more energy than you need. The excess energy produced can be pushed back to the grid, at a profit. The company buys this energy through a feed-in tariff. Although the initial costs may be high, you should be able to recover in the long run.

 

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