Energy tariffs explained – how do I know if I’m on the right one?
When it comes to saving money on energy bills, it can be hard to know where to start. Improving efficiency in the home can reduce the size of bills, but if you’re on the wrong energy tariff you can still end up paying over the odds.
There is a lot of different energy tariffs out there, with each one designed for the different needs of households. There are also financial benefits and drawbacks to different tariffs, so it is important to know if you are on the right one for your financial situation.
Everyone is trying to save money where they can these days, as the rising cost of living has forced the majority of people to monitor their outgoings more stringently.
Energy bills are one of the largest household expenses, so being certain that you are paying the right amount is vital. Are you on the appropriate tariff for both your energy usage and wallet?
Fixed vs standard tariffs
One of the key issues to take into account when considering whether you are on the right tariff is whether you want a standard or fixed tariff. The difference between the two is simple – a fixed tariff will see you pay a fixed price per unit of gas or electricity, while a standard tariff means the amount which you pay can change.
The main benefit of a fixed tariff is the peace of mind you’ll get from knowing that your bills won’t increase for a set period of time. However, prices can be higher than those of non-fixed tariffs, and you won’t benefit from any price cuts which your supplier makes.
Dual vs single tariffs
Another decision to make on energy tariffs is whether to have a dual tariff, where you get gas and electricity from the same supplier, or two separate ones for each energy type.
In general, many suppliers will offer an incentive of new British Gas boiler prices, as you are providing them with more business. There is also the added benefit of only having to deal with one supplier for all of your household energy consumption.
With prices for traditional energy rising all the time, some people are turning to alternative sources to try and save money. Investing in things like solar panels can be pricey at first, but the savings will hopefully last for years to come.
Feed-in Tariffs work by offering payments to homes that produce their own energy, through solar panels or wind turbines. Therefore, by switching to green energy you can hopefully make long-term savings.