The energy industry is full of jargon, particularly when it comes to tariffs. We’ve put together a quick explanation of our different types of tariff and the pros and cons of each, to help you understand which one would be the best option for you.
Looking for tariff rates? View our tariff information labels to see our current and historic tariff prices.
A fixed tariff has rates that stay the same for the duration of the contract. These rates may vary depending on where you are in the country, but they will not go up or down. So for example, if you sign up to a tariff that has a fixed rate of 40p per kWh of electricity, your electricity will be 40p per kWh until the tariff end date.
We don’t currently have any fixed tariffs available for you to switch onto.
If you want to know if your tariff is fixed, check your tariff information label. Fixed tariffs will say ‘fixed until’ and then the date your tariff ends.
- Your tariff rates stay the same for the duration of your contract. Your tariff isn’t at risk of price rises so you always know how much your energy will cost you.
- If you don’t want to pay by Direct Debit you won’t be able to sign up to our fixed tariffs. At Good Energy we ask everyone signing up to our fixed tariffs to set up a Direct Debit.
A variable tariff has rates that are not fixed and can go up or down. The price of energy on the wholesale energy market influences if rates need to change. Rates may also vary depending on where you are in the country. Variable tariffs also do not have end dates, and will keep rolling on month to month.
At Good Energy, our variable tariffs are our Standard Variable Tariff, our Default tariff, and our Deemed tariff.
Our Standard Variable tariff is exempt from the price cap set by the energy regulator, Ofgem. This is because Ofgem found that the way in which we buy power genuinely supports the growth of green energy. Read more about our price cap exemption.
- Our Standard Variable tariff doesn’t have an end date, so you’re free to stay on the tariff for as long as you’d like.
- If you’re on our Standard Variable Tariff and choose to pay by Direct Debit, you will be eligible for our Direct Debit discount. The average dual fuel customer will be able to save £129 a year. This is based on a percentage of your unit rate and standing charge and depends on how much energy you use, so some customers will see smaller or larger savings.
- Paying by Direct Debit each month is a quicker and greener way to manage your energy, so this is our way of saying thank you for saving us time and for cutting carbon emissions.
- There’s no exit fee. So if you’re on a variable tariff, you can switch tariff or change supplier at any time.
- On a variable tariff your rates aren’t fixed and can go up or down. Changes to rates on a variable tariff are based on the energy market how much it costs to buy electricity and gas. You’ll always receive reasonable notice of any change to your rates to give you time to decide on the best option for you.
Our Default tariff is our tariff for any customers who have reached the end of their fixed tariff contracts and haven’t decided to switch to another tariff. It’s covered by the price cap and the rates are variable, not fixed. Default simply means you’re out of contract; it doesn’t mean you’ve failed to pay.
Our Deemed tariff is for customers that haven’t chosen to be supplied by Good Energy. For example, if you move into a property that’s already supplied by Good Energy, you’ll be on the Deemed tariff until you set up your account with us and switch to one of our other tariffs, or switch away to a new supplier. Our Deemed tariff is covered by the price cap and the rates are variable, not fixed.
Pros of our Default and Deemed tariffs
- There’s no exit fee.
Cons of our Default and Deemed tariffs
- Your rates on either of the above tariffs won’t be fixed and can go up or down. Changes to rates on the Default tariff are governed by Ofgem’s energy price cap. You’ll always receive reasonable notice if your rates are changing.
Also known as Economy 10 or Economy 7, economy tariffs are an older type of tariff for economy meters. These meters have two or more dials, which record your energy usage at different times of the day to enable you to have different rates for peak and off-peak energy. Your cheaper off-peak rates will almost always be overnight.
On Economy 7 tariffs, you will have seven hours of cheaper off-peak electricity, usually starting at either 11pm or 12am.
On Economy 10 tariffs, you will have ten hours of cheaper off-peak electricity spread over 24 hours. This usually includes seven hours overnight, and three hours during the day.
- If you’re a household that consumes a large amount of energy during the off-peak hours (such as if your house has night storage heaters) an economy tariff could save you lots of money.
- The majority of energy companies have economy meter options for each of their tariffs. At Good Energy we offer Economy 7 options on each of our fixed tariffs, and both Economy 7 and Economy 10 on our Standard Variable Tariff.
- If you don’t consume a high amount of energy overnight, economy tariffs could cost you more money, as the peak rate tends to be more expensive.
- Economy 7 and Economy 10 meters are old meters not typically installed any more. If you’re looking to switch to a tariff that offers you peak and off-peak energy, you’d be better to upgrade to a smart meter and take advantage of time of use tariffs.
Time of use tariffs
Time of use tariffs are the next generation of energy tariffs. Facilitated by a smart meter, they offer beneficial rates at times when demand for energy on the National Grid is lower. For example, you may have cheaper energy overnight, which you could use for charging an electric car or running an appliance such as a dishwasher. There’s even the potential for these tariffs to offer even greater flexibility, such as providing lower rates when there’s lots of renewable energy on the grid.
You need a smart meter to switch to a time of use tariff. If you don’t already have one, register your interest today.
- You could get beneficial pricing for using energy at times when demand on the grid is lower
- Time of use tariffs and smart meters will help make the grid greener and more efficient, by rewarding customers for shifting their energy usage away from busy times. This will help even out peaks and troughs in electricity supply, and reduce the need for large, dirty fossil fuel power stations to meet sharp rises in demand.
- Time of use tariffs are the future – new and innovative ideas are being developed all the time, to help us all save money and help the energy grid make the most of electricity from renewable sources.
- You can’t switch to a time of use tariff if you don’t have a smart meter. Luckily, smart meters are quick and simple to install. We work with specialist installation partners SMS, to install smart meters for our customers. Register your interest for a smart meter today.
- The more you’re able to shift your energy usage into off-peak hours, the more you’ll benefit. If you’re not able to shift your usage, a time of use tariff might not be as suitable for you.