How to Find the Cheapest Standard Electricity Tariff

January 22nd, 2014
How

Energy Guide by FreePriceCompare.com

 

Standard electricity tariffsare the most basic of tariffs but they are very expensive in the long run.

When selecting an electricity tariff, you will be faced with many options such as Dual fuel, Economy 7, Economy 10, capped and online billing options. Whilst, all these options are not as simplistic as a standard tariff they are in fact much more cost effective. – Compare Standard Electricity Tariff with Free Price Compare

Standard electricity tariffs

All providers have a standard tariff which can be used to work out the cost effectiveness of other options. These standard tariffs are among the most expensive options but in fact they are the most popular as many people simply fail to look for cheap tariff options. – Compare Standard Electricity Tariff with Free Price Compare

What to look for in a good tariff option

Price comparison is an obvious first factor all utility shoppers consider; by looking at the kilowatt per hour/ kWh against the standing charge you can deduce the cheapest option available to you. Typically, a high standing charge would be accompanied by a low unit rate and a low standing charge would be accompanied by a high unit rate. So the decision would come down to your usage pattern, if you are a high user of electricity then you will benefit from a low unit rate, in contrast a small user would find a zero standing charge more ideal. – Compare Standard Electricity Tariff with Free Price Compare

To help you get a better price, many electricity tariffs now come with an online account option. The online account helps the electricity company reduce its admin and management costs which in turn means cheaper rates on the electricity tariffs. Similarly, better prices can be obtained if you opt for the dual fuel tariff option. This option basically requires you to get both your electricity and gas from the same supplier. However,dual fuel is not always the cheapest and so you should check the Electricity comparison tables for the right deal.

Fixed or Variable electricity rates

We live in a country that is riddled with inflation and as such, the prices of all goods keeps going up. However, in the energy market, the price increases at rates which are significantly higher than the baseline inflation rate.

Hence, a clear benefit of the fixed rate electricity tariff is that you will always know that you’re getting a fixed 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 rate tariffs would take 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 (www.freepricecompare.com), we would advise customer to opt for the longer term fixed rate electricity tariffs which shield them from future electricity price increases. – Compare Standard Electricity Tariff with Free Price Compare

Other options

Standard electricity tariffsare the most basic of tariffs but by selecting an alternative you can save a significant amount of money.

Alternatives such as Economy 7/ Economy 10 offer discount rates depending on the time of the day, such that cheaper rates are on offer during off peak times. This is a great way of saving money from your bills as a small change in behavior will lead to better savings on your bill. – Compare Standard Electricity Tariff with Free Price Compare

Further alternatives include, switching to an online account which saves you money regardless of your tariff, as the energy company will be benefit from reduced admin costs which it can pass on to the customer in the form of better rates.

To start comparing tariffs today, check out our handy comparison tool. As always our service is free, independent and impartial.

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

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