How to Find the Cheapest Variable Rate Electricity Tariff

Energy Guide by FreePriceCompare.com

To help you findthe best electricity tariff we have compiled all the information you need below.

Every day the cost of goods and services keep going up at rates which often seem extortionate. In such an instance, having a variable rate electricity tariff will not offer any protection. But in contrast, if prices do move in your favour then you will instantly benefit from the cheaper rates. – Compare Variable Rate Electricity Tariffs with Free Price Compare

What are variableElectricity tariffs/rates?

When you consider signing up with an energy company you will have the option of selecting either a fixed or variable rate electricity tariff. The variable tariffs are prone to market movements whist the fixed rates offer protection from the upside increase.

A clear benefit of the fixed rate electricity tariff is that you will always know that that you’re getting a variable monthly electricity bill which will remain at the same rate till the end of your contract. In contrast, if the electricity prices do go down then you will not be able to capitalize on the opportunity as you will be stuck in the higher rate fixed electricity contract. To some effect the fixed rates tariff has taken away your basic right to switch to an option which is more beneficial and hence, a variable tariff in this case is ideal.

Nonetheless, At Free Price Compare , we would advise customer to opt for the longer term fixed rate electricity tariffs which shield them from future electricity price increases. As per the now common knowledge, electricity prices have been going up consistently at a rate which is higher than inflation. – Compare Variable Rate Electricity Tariffs with Free Price Compare

How can I compare variableelectricity tariffs/rates?

Once you have worked out if the best option for you is a fixed or variable electricity tariff, you will need to opt for an electricity tariff plan which suits you needs. There are plenty of options which all vary in different ways.>

For example, would you prefer to have an online or paper billing system? In recent times, most energy suppliers prefer customers to have an online billing system as it reduces service costs for themselves and for the end consumer. Hence you will often find online billing systems to have cheaper electricity rates. To add, it gives an extra control to you as you can monitor your electricity usage/ costs at any time.

Moreover, many electricity packages come with a standing charge which means there is a minimum charge that has to be paid by the customer. Typically, the higher the standing charge the lower unit rate, so if you are a big user of electricity then having a small unit charge will be more cost effective. Similarly, if you are a small user of electricity then having a low standing charge or a zero standing charge will be more economically beneficial.

In order to get further benefits from your electricity provider, you can obtain an Economy 7 meter. These meters offer different rates depending on the time of day. As you might expect, often unsociable hours/ off-peak hours have great prices allowing you to save money without compromising on your activities. – Compare Variable Rate Electricity Tariffs with Free Price Compare

So what are the options?

In order to know all the available options, it is important to compare all the variable rate electricity tariffs. You can do exactly this at Free Price Compare , our simple to use energy comparison table will showcase all the options and the level of savings they all provide. When making your judgment, be sure to look at all the relevant details carefully -such as exit fees and paper/online billing options.

Compare your energy tariffs (Gas and electricity bills / Utility bills) by calling Free Price Compare

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Written by

Shay Ramani

Founder and Managing Director at Free Price Compare

Expert in Cost Saving and Financial Solutions