What’s the difference between fixed, standard variable, and unlimited energy tariffs?

Energy tariffs affect how much you pay for your gas and electricity. On fixed and standard variable tariffs, you’re billed based on what you use, but the rates you pay differ. Unlimited tariffs work differently, offering a set price regardless of usage. Understanding these differences can help you choose the right tariff for your needs.

Comparing energy tariffs

Fixed tariff

• Your unit rate (price per kWh) and standing charge stay the same for the duration of your contract (usually 12 or 24 months).
• You’re still billed for what you use – your monthly payment may change if your energy use increases or decreases.
• Protects against price rises but has exit fees if you leave early.

💡 Tip: A fixed tariff helps with budgeting as you know your rates won’t change, but your actual bill depends on your consumption.

Standard variable tariff (SVT)

• The unit rate and standing charge can go up or down based on the wholesale energy market.
• No fixed contract, so you can switch tariffs at any time without exit fees.
• Usually more expensive than fixed tariffs but offers flexibility, depending on the wholesale energy market.

Unlimited tariff

• You pay a set price each month, regardless of how much energy you use.
• Can be useful if you prefer cost certainty, but may not be the cheapest option for low-energy users.
• Usually requires a fair usage policy to prevent excessive consumption.

💡 Tip: An unlimited tariff may be worth considering if your energy usage is high and consistent throughout the year.