Acquiring energy in the UK is different from other things people purchase. Yes, it is not as easy as buying shoes, clothes, or groceries, but it does when you know your needs when hitting the market. However, most of us feel overwhelmed when confronting the businesses that supply us with energy.
A recent poll indicated that fifty-three percent of respondents perceived energy rates as challenging to understand. In this article, we go over the many available energy tariffs, the steps that need to be taken to find the right energy providers, the steps that need to be taken to guarantee that your energy is sustainable, and how to ensure your monthly energy tariff doesn’t go through the roof. You can always read more on Utility Bidder’s energy guides to better understand the intricacies of sustainable living and a lot more.
Finding the Right Energy Supplier
Finding the provider of your electricity can be a little challenging at times. The electrical distribution network in the UK is broken up into many distribution regions, each of which has its own distribution company. These distributors maintain a record of the energy supplier for each property. Calling your power distributor (for a list of national distributors, see here) and asking for information about your electricity supplier is the easiest way to find out who provides your electricity. They will ask about your property and something known as a Meter Point Administration Number (MPAN), which may be found on your electric meter.
The price of energy is subject to regular shifts for various reasons, including the state of the economy, the cost of commodities like oil and coal, and even when a new service provider introduces an innovative product or service that leads the market. To help expand their market share, newer or smaller entrants will frequently provide tempting bargains. Meanwhile, competition should also cause existing companies to bring down the prices that they offer.
The best buy tables typically consist of individuals with lower chip counts. However, this does not necessarily mean they have the lowest prices or the best bargains. On the energy market, dozens of different providers are now doing business. You shouldn’t restrict yourself to just a few of them. You should also investigate the energy companies charging rates before settling down with one.
Types of Tariffs Available
Standard Variable Rate
This is often the default tariff that the energy supplier uses. After the conclusion of a period during which you were subject to a fixed rate tariff, you might find that you are now subject to the usual variable rate. If you haven’t changed your plan in a significant amount of time, you certainly are on a standard variable rate.
These rates provide complete leeway in payment options. If you decide to switch providers, you will not be required to pay any exit costs and will not be bound to a contract with a predetermined termination date.
On the other hand, there is no security against price rises on a conventional variable rate, and it is frequently not the most affordable available option.
A fixed rate is what it sounds like: you pay the same amount for each unit of energy consumed up until a specific date in the future. The duration of a fixed rate is typically one year, two years, or even five years.
These rates give customers a sense of security because they let them know precisely how much they will have to pay. They are usually far less expensive than the regular variable rate tariffs.
On the other hand, you are typically obligated to stick with the arrangement for a predetermined amount of time. Also, keep in mind that the unit pricing is the only thing set in stone; you will continue to be charged for the total energy you consume, and your monthly costs could increase as a result.
This is known as a dual fuel tariff when you purchase gas and electricity from the same company.
Choose a tariff that includes both gas and electricity. You will only have to deal with a single energy provider, which often reduces the overall cost of your energy bill.
However, the discount typically given to customers who purchase electricity and gas from the same company is not usually as significant as the discount given to consumers who purchase both fuel types separately.
Numerous energy providers provide green tariffs, which might either mean that they will balance your energy consumption with the creation of renewable energy or that they will contribute money to environmental programs on your behalf.
These tariffs provide a constructive means of communicating to the energy business that you are interested in supporting renewable energy sources. On the other hand, they are not always the most affordable option. Additionally, the ‘green’ part of the tariffs is not as straightforward as one might think.
How to achieve Sustainable Energy
Solar, wind, hydro, and biomass are the four kinds of renewable energy that come to mind when discussing sustainable electricity sources. While it’s true that all of them have a renewable supply, that doesn’t necessarily make them sustainable. The term “sustainability” refers to a state that may be evaluated based on its performance concerning three different metrics: environmental sustainability, social sustainability, and economic sustainability.
Energy providers are currently installing smart meters. These come with a digital display that can be viewed within the home. In essence, the purpose of smart meters is to take the place of the gas and electricity meters currently in a home by utilizing a wireless connection to transmit consumption data directly to the energy provider. Most modern smart meters include a mode that allows users to plan an energy budget and check to see whether they are staying within their limits.
The Bottom Line
When it comes to shopping for electricity, there’s no universally applicable tariff to cover all possible scenarios. Your energy consumption and the kind of meter you have will determine which electricity provider is the most suitable for you.
You should also think about the origin of your power and whether or not you would want to have electricity that comes from renewable sources before you hit the market.