Fixed, Variable and Smart Tariffs Explained
Not all energy tariffs work the same way.
Some offer price stability.
Others offer flexibility.
Choosing the right tariff can make a big difference to your yearly costs.
Fixed Tariffs
A fixed tariff locks your prices for a set period.
This is often 12 to 24 months.
During that time:
- Unit rates stay fixed
- Standing charges usually stay fixed
- Bills become more predictable
This protects you if prices rise.
However, many fixed deals include exit fees.
Fixed Tariffs May Suit You If:
- You want stable bills
- You prefer certainty
- You worry about future price rises
Variable Tariffs
Variable tariffs can go up or down.
Prices usually change with market conditions.
Because of this, bills are less predictable.
However, variable tariffs often offer more flexibility.
Many have no exit fee.
Variable Tariffs May Suit You If:
- You want flexibility
- You may switch soon
- You believe prices could fall
Smart Tariffs
Smart tariffs charge different prices at different times of day.
For example:
- Electricity may be cheaper overnight
- Peak evening hours may cost more
These tariffs usually require a smart meter.
Are Smart Tariffs Worth It?
Smart tariffs can save money.
However, they do not suit every household.
They work best if you can shift energy use to cheaper times.
Examples include:
- Charging an electric vehicle overnight
- Running washing machines late evening
- Heating water off-peak
If your usage is fixed during peak times, savings may be limited.
Which Tariff Is Best?
There is no single best tariff.
The right choice depends on:
- Your usage
- Your routine
- Your attitude to risk
- How often you compare deals
A good tariff is one that matches how you actually live.
In Summary
Choose:
Fixed tariffs for stability
Variable tariffs for flexibility
Smart tariffs for time-based savings
The best tariff is the one that fits your lifestyle.