Our variable tariff prices.

Understanding variable gas and electricity tariffs.

What is a variable tariff?

A variable tariff, also known as a standard variable tariff (SVT), is a flexible energy contract where electricity or gas prices and standing charges vary based on wholesale market fluctuations.

Bills can rise or fall depending on your usage and the market changes. These open-ended contracts offer easier switching but expose you to market volatility.

In the UK, the government sets a price cap on standard variable tariffs, reviewed in April, July, October, and January. Despite the cap, variable tariffs may be costlier than fixed ones during periods of high wholesale energy prices.

Here are some of the pros and cons of variable energy tariffs:

Pros:

• Open-ended contracts with no fixed end date or long term commitment.

• Flexibility to switch suppliers or change tariffs easily.

• No exit fees.

Cons:

• Prices can fluctuate depending on the wholesale market.

• It may be more expensive than fixed tariffs, especially in times of high wholesale energy prices.

• No certainty of price over the longer term

If you are considering switching to a variable energy tariff, it is important to do your homework and shop around for the best deal. You should also consider your energy usage patterns and how they might be affected by price fluctuations.

What is the difference between variable and fixed energy tariffs?

Variable and fixed energy tariffs are two types of energy contracts that offer different levels of price certainty and flexibility.

Variable energy tariffs allow your energy supplier to charge you the current market price for energy, which can fluctuate depending on various factors, such as the cost of wholesale energy, exchange rates, and global economic conditions. This means your energy bills could go up or down depending on the market conditions rather than just on how much you use.

On the other hand, fixed energy tariffs offer a guaranteed price for energy for a set time, typically 12 or 24 months. This means that the price you pay for each unit of energy will remain the same for the duration of your contract, regardless of changes in the wholesale energy market. But remember, the more energy you use, the bigger your bill will be.

Which type of tariff is right for you?

The best type of tariff for you will depend on your circumstances and preferences. Suppose you are comfortable with the risk of your energy bills going up. In that case, a variable tariff may be a good option for you. However, if you prefer certainty and want to avoid the possibility of unexpected price increases, a fixed tariff may be a better choice.

Here are some factors to consider when choosing between a variable and fixed energy tariff:

• Your risk tolerance: Are you comfortable with the risk of your energy bills going up?

• Your energy usage patterns: Do you have a relatively stable energy usage pattern?

• Your budget: Are you looking for the lowest possible energy bills?

• Your prediction of energy prices: Do you think that energy prices are likely to rise or fall in the future?

It is always a good idea to compare prices from different energy suppliers before choosing a tariff. You can use price comparison websites to compare tariffs and find the best deal for you.

Economy 7 and Economy 10 tariffs.

Economy 7 and Economy 10 are time-of-use (TOU) tariffs that offer cheaper electricity rates during off-peak hours and higher rates during peak hours. They are typically used by households that are happy to use a large proportion of their electricity at night.

Economy 7.

Economy 7 offers 7 hours of cheaper electricity, typically between midnight and 7am. The rest of the day, electricity is charged at a higher rate.

Economy 10.

Economy 10 offers 10 hours of cheaper electricity, for example, between 1pm and 4pm, 8pm to 12am and 4am to 7am. The rest of the day, electricity is charged at a higher rate.

Who is Economy 7 and Economy 10 suitable for?

Economy 7 and Economy 10 tariffs are a good option if you:

• Use a large proportion of their energy during the off-peak hours

• Have storage appliances such as a hot water tank or a storage heater.

• Are willing to switch your energy consumption to the off-peak hours.

What are the benefits of Economy 7 and Economy 10 tariffs?

The main benefits of Economy 7 and Economy 10 tariffs are that they can help you reduce your energy bills. They can also help you reduce your carbon footprint, as you will use less electricity during peak hours when the grid is under more strain.

What are the drawbacks of Economy 7 and Economy 10 tariffs?

The main drawback of Economy 7 and Economy 10 tariffs is that they can be more expensive than standard tariffs if you use most of your energy during peak hours. They can also be inconvenient if you do not have storage heaters or similar. Additionally, you may need to change your habits to make the most of these tariffs, and that may not suit everyone.

How to switch to Economy 7 or Economy 10?

Do you think Economy 7 or Economy 10 tariffs are right for you? In that case, you can switch tariffs by contacting your energy supplier. And we can help you with that.

You will need a meter that can handle multiple rates. Some energy suppliers offer dual-rate meters, which can automatically switch between the off-peak and peak rates. Other energy suppliers require you to manually change your appliances between the two rates.

Tips for making the most of Economy 7 and Economy 10 tariffs.

Here are a few tips for making the most of Economy 7 and Economy 10 tariffs:

• Use electricity-hungry appliances during off-peak hours. This includes washing machines, dishwashers, tumble dryers, and electric showers.

• Make sure your appliances don’t use any unnecessary electricity by turning them off at the plug.

• Use a timer or smart plug to automatically switch appliances off when not in use. This will help you to avoid wasting energy during peak hours.

• Invest in a storage heater. This type of heater stores heat during off-peak hours and releases it during peak hours.

• Switch to a dual-rate meter if possible. This will automatically switch between the off-peak and peak rates, so you don't have to worry about manually switching your appliances.

By following these tips, you can make the most of Economy 7 and Economy 10 tariffs.

Why does the price of electricity vary from region to region?

There are several reasons for regional variations in energy tariffs:

Distribution Network Costs.

Each of the UK's six electricity distribution network operators (DNOs) is responsible for maintaining and operating the electricity distribution network in their region. These network costs, which include the cost of maintaining and upgrading their part of the network infrastructure, are part of the price of your energy tariff.

As a result, the cost of electricity distribution varies by region, which is reflected in the energy tariffs offered by suppliers.

Fuel Mix and Generation Costs.

The cost of generating electricity varies depending on the fuel mix used in different regions. For instance, regions with a higher reliance on renewable energy sources like wind or solar power may have lower generation costs than regions that rely more heavily on fossil fuels like gas or coal.

These differences in generation costs ultimately influence the overall cost of electricity, and this difference is reflected in energy tariffs.

Competition and Supply Dynamics.

The level of competition among energy suppliers and the supply dynamics in different regions can also contribute to regional variations in energy tariffs.

Regions with higher levels of competition may result in more competitive tariffs. In contrast, regions with fewer suppliers or a more concentrated market may have higher tariffs.

Regulatory Factors.

Government regulations and policies can also play a role in shaping regional variations in energy tariffs. For example, the UK's energy market reforms have introduced legislation designed to help ensure the security of the electricity supply at the least cost to consumers.

This can impact distribution costs and ultimately influence energy tariffs across different regions.

Consumer Habits and Demand Patterns.

Consumers' energy consumption patterns and habits can also contribute to regional tariff variations. For instance, regions with higher average household energy consumption may have slightly higher tariffs than regions with lower average consumption.

Understanding these factors can help consumers make informed decisions about their energy tariffs and identify the best options for their needs and circumstances.

How to switch energy suppliers ?

Switching is straightforward if you've done your homework and decided to change your supplier.

For example, with E.ON Next, you can get a quote in seconds.

Then, once you are happy with the quote and want to move to us, you'll set up your Direct Debit. Don't worry about telling your current energy supplier. We'll do that for you. We'll provide you with a switchover date, usually within 21 days of your request. Then, come the day, you provide us with your meter readings, and the job is done! Although it's always worth keeping an eye on things for a few days to make sure.

Told you it was simple.

What tariffs do E.ON Next offer?

We offer a selection of variable and fixed tariffs suited to different customer needs and preferences.

Which tariff you choose is ultimately down to you and your preferences. Are you looking for some predictability and stability in your energy bills? Then, a fixed tariff will probably be the right one for you.

However, maybe you don't want to be tied down for 12 or 24 months to a single price for your energy. You may want more flexibility and be free to change when it suits you - even if that may mean paying a little more every month. In which case, the standard variable tariff is more suitable.

But whatever you're after, we are sure E.ON Next will have a tariff suited to your needs. Whether it's price stability, discounted rates, greater flexibility, or 100% renewable electricity - E.ON Next's tariffs have something to offer everyone. Why not find out more? Just enter your postcode and see what's available to you.