A variable-rate electricity plan is just what it sounds like – the rate you pay for electricity can vary from one month to the next. These rate changes are usually caused by changes in how much it costs to generate and deliver electricity.
Is variable or fixed electricity better?
Fixed rates are usually cheaper than variable rates. However, variable rates afford energy consumers more freedom, and can rise or fall in proportion to the cost of wholesale energy. There is huge variation between different fixed and variable tariffs depending on which supplier you choose.
What does variable mean in electricity?
A “fixed price” energy tariff means that your unit price for gas and electricity will not change for the duration of the plan. A variable rate means your energy price can vary during the plan. If you have a fixed price plan and your supplier announces a price rise, your rates will not change.
Who is the cheapest energy provider in UK?
It offers low-cost gas and electricity tariffs, and is in fact one of the cheapest energy suppliers in the UK. There are also no exit fees should you wish to switch supplier.
Is electricity a fixed cost?
Utilities– the cost of electricity, gas, phones, trash and sewer services, etc. … However, utilities are generally considered fixed costs, since the company must pay a minimum amount regardless of its output.
How do I choose a good energy tariff?
If you want the cheapest option
You should choose a ‘fixed’ tariff if you don’t mind signing a contract for a set period – usually 12 months. The cost of your energy won’t go up for the length of your contract, so your bills only change if you use more or less energy.
Should I fix my energy prices until 2021?
The Government has confirmed that the energy price cap, which limits how much suppliers can charge for poor value tariffs, will be extended until the end of 2021 – and will cover those on prepayment meters.
How do I switch energy providers?
How do I switch energy suppliers?
- Find a recent energy bill or use our estimation tool. You need to know who your supplier is, and what tariff you’re on. …
- Run a quote & select a tariff. …
- Check your old account balance. …
- Allow for around three weeks for the switch to complete.
Is Octopus energy going bust?
Octopus Energy has been selected by Ofgem as the Supplier of Last Resort (SoLR) for Effortless Energy’s domestic and non-domestic customers. It was confirmed on 2 September that Effortless – which trades as Go Effortless Energy – would cease trading.
Is Octopus energy a British company?
Octopus Energy is a United Kingdom based retail electricity and gas supplier specialising in sustainable energy. It was established in 2015 as a subsidiary of Octopus Group, a British asset management company.
Is Octopus energy cheap?
Octopus is one of the cheapest energy suppliers in the UK and boasts stellar customer reviews. Is there a better provider? Green energy supplier Octopus Energy, was founded by Greg Jackson whose dream was to make energy greener, but also cheaper.