The energy market is full of industry jargon that can be challenging to understand whilst looking for a new energy package. Have a quick read to understand what the two main energy tariffs mean, how they work and how they affect you.
What energy tariff is right for me?
When choosing an energy tariff it’s important to think about your own circumstances and what works for you personally. Below we’ll lay out the different types of energy tariff so you can choose the right one for you.
Standard Variable Tariff (SVT)
This means your unit rates (the amount an energy supplier charges per unit of energy you use) and standing charges (your daily rate for having energy supplied to your home) will go up or down depending on what the supplier wants to charge. This is largely dictated by external circumstances (more recently war) where countries and companies will increase wholesale pricing if supply is low and demand is high. Then you will be charged for your energy usage.
Ofgem have recently released that the Standard Variable Tariff will increase in October 2024 and is rumoured to increase again in January 2025. For more information see here.
Fixed Rate Tariff
This tariff means that your standing charges and unit rates will remain the same from the moment you sign up through your 12 month contract. Your bills will be determined purely on the amount of energy you use so you’re in control of your bills. We have some energy saving tips in our blog here.
| Standard Variable | Fixed Rate | ||
| Unit Rates & Standing Charges fixed | ❌ | ✅ | |
| You only pay for the energy you use | ❌ | ✅ | |
| Monitor your energy usage in your personal portal on Bunch | ❌ | ✅ | |
| Unlimited energy usage for a fixed price | ❌ | ❌ | |
| Free CanopyGrow credit score building with Bunch | ❌ | ❌ |
At Bunch we only offer Fixed Rate Energy because we want to simplify people’s lives. Standard Variable Tariffs are unpredictable and subject to external wholesale energy pricing, making it harder for our customers to plan ahead and budget.
We suggest a fixed rate energy tariff. Your standing charges and unit rates will remain the same for the full 12 month contract so your bills are completely dependent on your usage. We only charge for you for the energy use and won’t increase those unit rates or standing fees unlike with a Standard Variable Tariff.