How To Find The Best Electricity Rate?

January 2nd, 2020
How

We all know that the cost of living is ever increasing, so saving money where it does not compromise our standard of living is a no brainier. That where we come in. We compare electricity prices to give you the cheapest deal to save you a bundle.

Explanation of fixed rate

After you’ve compared prices in your area, you’ll be presented with two types of tariffs: fixed rate and variable.

What is a variable rate tariff?

A variable rate tariff fluctuates in line with market conditions. This would obviously be beneficial when energy prices fall however currently energy prices are set to rise as we approach the autumn and winter season. The benefit of a variable tariff is that you could terminate your contract in a moment’s notice as you are not in a fixed contract with your energy supplier.

What’s a fixed rate tariff?

A fixed rate tariff provides you a fixed price per unit (p/kwh) for the duration of your contract with your supplier. This makes you immune to fluctuations in price during that period. This tariff will be beneficial if prices rise, which they are set to, however should they fall, and you will not benefit from lower charges. The only way to gain the benefits of those lower prices would be to pay the exit penalty set out by your supplier to change your tariff to one that is variable.

Which fixed rate to go for?

Once you’ve decided on the fixed rate contract, you need to find out how long to have that contract for. The longer the contract, the longer you will be immune to price fluctuations in the market. However if prices plummet, you will lose out on the saving you could be making if you were on a variable tariff contract.

Paperless Billing

Paperless billing with online energy tariffs ensures you save money as there are no billing charges and you always receive your bills on time. This method of billing is also environmentally friendly. Paying by direct debit could save you 5-8% as you avoid unnecessary card charges.

Standing charges

This is a fixed change which covers the cost of reading and maintaining energy supply meters, dealing with enquiries and sending bills. Smaller users should opt for tariffs without this charge as they have lower usage. Larger users should opt for tariff with a standing charge as it helps to bring electricity and gas down with more usage.

Economy 7

If you have an Economy 7 tariff, you’ll have a peak rate and off-peak rate. The off-peak rate will be cheaper than the peak rate. The off-peak rate lasts for 7 hours, hence the name, and usually starts between 11.30pm-12.30am and finishes 7 hours after start.

Using high energy appliances, such as irons and vacuum cleaners, during off peak times could show massive saving on your energy bills.

What are the options?

Use FreePriceCompare.com to shop around for the cheapest deals. If you need help don’t hesitate to call our advice centre and they will guide you through the options.

Compare and see how much you can save on your energy bills

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