What is Unlimited Energy?
An Unlimited Energy Tariff is a pricing plan offered by some energy providers that allows consumers to pay a fixed monthly or annual fee for their energy consumption without being charged based on the amount of energy they use. The concept is similar to unlimited data plans offered by some telecommunication companies.
In the context of electricity and gas, a typical energy tariff involves paying for the actual energy consumed, usually measured in kilowatt-hours (kWh) for electricity and cubic meters for gas. With an unlimited energy tariff, customers pay a flat rate regardless of how much energy they use during a billing period. The idea is that consumers can use as much energy as they need without worrying about variable costs based on usage.
What’s the difference between a Fixed Rate Unlimited Tariff and a Standard Variable Unlimited Tariff?
Both tariffs will give you unlimited energy, much like your mobile phone gives you unlimited data. However, the Fixed Rate tariff locks in your unit charges (the amount you pay per unit of energy) and your daily standing charges (a daily charge you pay for energy) for the duration of your contract. So your bill will be exactly the same every month. A Standard Variable tariff gives the energy provider the freedom to increase or decrease both of these charges so your bills could go up or down. We recommend a Fixed Rate tariff because it enables you to plan and budget for the year ahead without any unexpected price increases.
Should I choose Unlimited Energy Tariff?
That’s entirely up to you. The benefits of a Fixed Rate Unlimited Tariff is that you’ll be paying the same amount every month no matter how much energy you use. This is especially helpful for shared houses where you don’t want to be arguing over who’s putting the heating on or leaving the lights on and driving up your usage and subsequently your energy bills. It removes all that stress. It also means you can plan ahead knowing your bills will stay the same every month for the term on your contract. This helps with budgeting especially if things are a little tight. This also could work for a house where two of you are working from home a lot therefore using a lot of energy during the day. For a 1 person studio where you are out a lot of the day, you might choose a standard Fixed Rate Tariff because you are likely to use less energy and are happy to control your usage, whilst also getting the benefits of a Fixed Rate, which means your unit rates and standing charges won’t change during your contract, again putting you in the driving seat and control of your bills.
Still not sure what’s for you?
Feel free to chat with one of our helpful Customer Care team who would love to chat through all the options we have and help you find the tariff that suits your personal lifestyle.
Ready to Bunch your bills together? Get a quote or sign up here.
Photo by Riccardo Annandale on Unsplash
