There are a number of tariff options that suppliers can offer. The main types of offerings in the market include:
Suppliers can offer cash discounts to customers for:
Standard variable tariffs (SVT) do not have a fixed duration and are open-ended.
Because they are open ended, the price of a standard variable tariff can go up or down.
This can mean that they are more expensive than some fixed term products. Suppliers are not allowed to include an exit fee, so consumers are free to leave a standard variable tariff at any point in time without paying a cancellation charge.
Standard variable tariffs are offered as single fuel tariffs or dual fuel, with the supplier typically giving a discount for taking two fuels together.
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With Economy 7 the consumer receives seven hours of electricity at an off-peak or low rate. Any electricity consumed after that is at the higher on-peak day time or normal rate. The timings vary between different areas, but the off-peak period will be a seven hour period falling somewhere between the hours of 10pm and 8.30am. The specific hours may vary depending on the region, the type of meter and could even change at different times of the year – for example, with a mechanical time-switch; the night rate may start at 12am during the winter and spring GMT hours and change to 1am during summer and autumn BST hours.
Economy 10 (sometimes referred to as ‘Heatwise’) offers additional three hours of electricity at the off-peak rate. The timings could be, early morning (4.30am – 7.30am), early afternoon (1.30pm – 4.30pm) and overnight (8.30pm – 12.30am). Economy 10 is not supported by all energy companies so consumers’ choices may be more limited.
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For use with a prepayment meter. According to Ofgem (June 2015) there remain fewer tariff choices for those paying by prepayment compared to direct debit. The majority of suppliers offer standard variable type tariffs to prepayment users. There are a small number of fixed rate tariffs available. A few suppliers are offering smart prepayment meter tariffs and a small number of tailored social tariffs for customers in vulnerable circumstances.
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With a fixed term tariff, the consumer will be in a contract with their supplier for a defined period of time. Some suppliers may also fix prices at one level for the duration of the tariff. Typically, fixed term tariffs have a termination fee if the consumer leaves the contract early. To avoid customers unwittingly being rolled onto a more expensive contract at the end of a fixed term tariff, Ofgem’s rules make suppliers put the consumer onto their cheapest standard tariff (evergreen tariff) if the consumer does not choose a new tariff. If the consumer does not want this to happen, they can contact their supplier before the fixed term tariff comes to an end and choose something else, or move to another supplier. If the consumer is happy being put onto the cheapest evergreen tariff but would like to choose something else later on, they can move without being charged an exit fee.
Consumers on a fixed term tariff will be given 42-49 days before their contract ends to decide if they want to stay with their supplier or switch. They will get details of the tariff they will be moved onto if they stay with the same supplier and do not agree to a different one.
Such tariffs come in three main types:
For these types of tariff, everything has to be set out by the supplier at the start of the contract, so the consumer knows that fixed means fixed.
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A number of suppliers offer ‘green’ energy tariffs, but what is offered can vary.
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Most suppliers offer dual fuel discounts for taking both fuels from them. Under Ofgem’s Retail Market Review changes the amount of the dual fuel discount will be clearer. It will no longer be expressed as a percentage amount but as a £ per year figure.
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With online tariffs the consumer will need to sign-up/ manage their account online and receive their bills electronically. The tariff name will usually refer to ‘online’ or ‘web’.
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Nearest tube: Elephant & Castle underground station (Northern and Bakerloo lines).
Nearest Railway Station: Elephant & Castle
Buses from Elephant and Castle: ask bus driver for Burgess Park. Bus numbers: 12, 171, 148, 176, 68, 484, 42, 40, 45