It is important to understand the different tariffs featured on your business energy bill so that you can choose the one that works best for you and your working lifestyle.
A variable price tariff changes as the market fluctuates. The amount you pay can vary from month to month depending upon energy tariffs at the time, this means that some months you could be saving if the tariff is lower whilst in other months you could be paying a little more.
A fixed price tariff is used to predict your general energy usage pattern over a longer period and then come up with an average price. This enables you to pay a monthly fixed price so that there are no nasty surprises at the end of the month or contract term.
A price freeze tariff is also variable but similar in principle to a capped or fixed-rate mortgage in that the amount you pay will not exceed a certain amount, giving you peace of mind. This is a useful tariff if you know how much your business uses each month.
A no standing charge tariff excludes any extra ‘flat cost’ fees that suppliers may charge, meaning that you only pay for the energy used. This saving may be added on to your kWh unit price which might be set at a slightly higher level to compensate.
In light of recent environmental and energy consumption concerns, new packages have also appeared on the market in the form of ‘green tariffs’, these tariffs tend to offer incentives for you to cut your energy usage. They may come in the form of matching your energy usage with renewably sourced energy or might include a percentage of your bill going towards environmentally forward-thinking projects.