Discover the Intricacies of Energy Tariffs: Fixed, Variable, and Deemed

Understanding the Differences Between Energy Tariffs

Navigating the energy market can be daunting, especially when it comes to understanding the various types of electricity and gas tariffs available. In this guide, we will delve into the differences between fixed, variable, and deemed tariffs to help you make informed decisions about your energy supply.

Fixed Tariffs: Stability and Predictability

Fixed tariffs offer a guaranteed price for your energy usage over a set period, typically 12 or 24 months. This provides stability and predictability in your energy costs, protecting you from fluctuations in the wholesale energy market.

Variable Tariffs: Flexibility and Potential Savings

Variable tariffs, on the other hand, allow your energy prices to vary in line with the wholesale energy market. This can lead to potential savings if the market price drops, but also exposes you to the risk of price increases.

Deemed Tariffs: A Default Option

Deemed tariffs are default tariffs set by energy suppliers for customers who do not actively switch providers. These tariffs typically offer basic rates and may not provide the most competitive prices.