Types of Energy Tariffs and Payment Methods

December 12th, 2019

There are a huge amount of energy tariffs in the market this guide breaks down the most popular ones.

Standard tariff

This is the most common tariff and the default tariff for those households that have failed to choose a fixed or capped tariff. Though most suppliers will name it as Standard other suppliers could name it something else, but they will be variable with no cancellation fees. The standard tariff is usually the most expensive tariff and households on such a tariff should look to switch as the savings could be as high as 30%. Click here to see how much you can save.

Online tariffs

The online tariff is usually a cheaper tariff as management of the account is all online. Meter readings, queries and often paperless billing.

Pay on receipt of bill (aka Cash and Cheque) tariff

Customers who choose not to pay by direct debit will be on pay on receipt of bill. The billing cycle is normally every 3 months with payment options to be made manually by the household. The payment options are listed on the reverse of the bill. Pay on Receipt Bill options are very expensive when compared to direct debit, but preferred by customer cautious of direct debit.

Direct Debit

Direct debit tariffs are when the supplier will usually take a fixed amount on a set date for the households energy use. The fixed direct debit should not be confused as it can change to match the household’s energy usage. Energy suppliers will do reviews of direct debits normally around the 6 month mark.

Prepayment meter tariff

Some households may have to top up to receive energy. This is done through a card and/or a key which is topped up at a retail outlet via a Paypoint or Payzone machine. Prepayment tariffs are generally more expensive but saving can still be made.

Green tariff

Green tariffs procure energy from renewable sources such as wind or solar. These tariffs are there for those that are environmentally conscious, and wish to minimise their carbon footprint.

Economy 7 tariff

Economy 7 tariffs are two rate meters with different rates for day and night. The night rate is cheap and lasts for 7 hours a day. For most households with Economy 7 the night rate start either at 11.30pm or 12am and lasts for 7 hours. Those households that have an Economy 7 meter will have or would have had night storage heaters previously. Click Here to know more about Economy 7 Energy Tariffs

Economy 10 tariff

Economy 10 meters are very similar to Economy 7 meters but offer 10 hours of off-peak rates. Whereas Economy 7 meters offer straight 7 hours of off-peak, Economy 10 meters are able to stagger the off-peak rate times.  The typical structure of an Economy 10 meter is;

  • 3 hours in the afternoon
  • 2 hours in the evening
  • 5 hours over night

Note there are only a few suppliers that offer the switch over service for Economy 10 meters.

Capped tariffs

Capped tariffs have a ceiling on the unit price and standing charge, so bills could fall but not go above the agreed unit rate and standing charge. This tariff is generally cheaper than the standard tariff. To see the best deals available, click here

Fixed tariff

This tariff is usually the cheapest tariff from most suppliers. The fixed tariff has a fixed unit rate and standing charge and will not alter despite market conditions.

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