Confused about standard variable tariffs (SVTs)? Learn how they work in the UK, their connection to the energy price cap, and how Fuse Energy offers transparent, flexible energy.
Take the stress out of finding the right tariff. With Fuse Energy, we'll help you choose the best option for your home; simple, clear, and tailored to you. Enjoy transparent pricing, real-time half-hourly usage data, 24/7 human customer support, and a modern energy experience designed around you. Switch to Fuse Energy today in as little as 3 minutes.
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A quick checklist to understand SVTs
- Check whether you're currently on an SVT.
- Understand your unit rate and standing charge.
- Monitor changes to the energy price cap.
- Compare total annual cost when you compare energy prices.
- Consider switching if better deals are available.
- Remember your new supplier handles the switching process.
In the UK energy market, an SVT is the default energy plan that many households are placed on when a fixed tariff ends. It is not a fixed-term contract, meaning your unit rates and standing charges can change over time. This flexibility means your tariff adjusts in line with market conditions, particularly the energy price cap set by Ofgem.
What is a tariff?
A tariff is the pricing structure your energy supplier uses to charge you for electricity and gas.
It typically includes two separate components: a unit rate (£/kWh) for energy usage in kWh and a standing charge in (£/day) paid regardless of energy usage. Understanding what a tariff is, and how different tariffs work, is key to managing your energy bills.
How SVTs work
The defining feature of an SVT is that prices can change. Unlike fixed tariffs, which lock in rates, SVTs rates adjust with the market, meaning your bills can increase or decrease. However, these changes are regulated by the energy price cap. SVTs usually don't have exit fees making them perfect for those moving house.
The energy price cap limits the maximum rates for standing charges and unit rates to protect consumers from suppliers charging overly high rates. They are set by Ofgem and change every quarter (1st January, 1st April, 1st July, 1st October).
What is the energy price cap?
The energy price cap sets a maximum limit on unit rates and standing charges, preventing suppliers from charging excessive rates on SVTs. This applies to all suppliers across the market. The energy price cap changes every quarter (1st January, 1st April, 1st July, 1st October).
Choosing between a fixed and variable tariff depends on your priorities. The key differences are that with fixed tariffs, your rates are often locked for 12 to 24 months, making your bills more predictable and budgeting easier. However, these tariffs usually include exit fees. SVTs on the other hand, have rates that change with the price cap, offering more flexibility, usually with no exit fees.
Which is right for you?
If you are a homeowner and would like to budget for your energy bills throughout the year, then a fixed tariff is best for you as it offers predictable rates that are fixed for the duration of your contract. SVTs are best if you will be moving house in the near future or would like to pay for energy in line with market conditions where rates can increase or decrease. It is completely up to you which tariff structure you choose and depends on your personal situation.
Managing your energy tariff should be clear and easy to understand. Fuse Energy focuses on straightforward pricing, so you can see exactly what you're paying without unnecessary complexity. With some of the lowest rates on the market, our tariffs make an attractive choice for bill-payers in the UK. If you have a smart meter, you can also view detailed usage data through the app or website, helping you understand how your tariff translates into actual costs. This can make it easier to track spending and make informed decisions about your energy use. Our 24/7 human support team is always on hand with fast response times of under 5 minutes whenever you need help. Switch to Fuse Energy in as little as 3 minutes and find out about our mission.
How does the energy price cap affect tariffs?
It limits the unit rates and standing charges on standard variable tariffs, ensuring consumer protection against extravagantly high energy prices.
What is the difference between fixed and variable tariffs?
Fixed tariffs lock in prices, while variable tariffs change with the market and offer more flexibility.
How can I switch to Fuse Energy?
Switching to Fuse Energy and accessing our tariffs is simple and can be done in as little as 3 minutes by completing the online onboarding process here.
Disclaimer
For the avoidance of doubt, this article is provided for informational purposes only and is not intended to constitute legal or financial advice. Fuse Energy shall not be responsible for any losses arising from reliance on this information.
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