Know your tariff
The first step is to determine what deal you are on, and work out whether you are getting the most out of it. In simple terms, there are two types available: most suppliers offer a fixed-rate tariff, of differing lengths; or a variable tariff (sometimes called “standard tariff”). If you are unsure about the tariff you have in place, check your bill or call your supplier.
Variable or fixed: what’s the difference?
With standard variable tariffs, the price you pay for each unit of energy can go up or can go down depending on wholesale costs (however, if your supplier makes a price change they will give you plenty of notice). Conversely, with a fixed tariff your rates are secure for a set period. So even if the market price of gas or electricity goes up, your rates will stay the same.
By choosing a fixed deal, you may pay more in the short term, but you could save more money in the long term, as the price will be guaranteed not to rise for the whole length of the contract. Further, the fixed charge is useful when planning your household budget, and provides peace of mind.
