Unlike the fixed rate, a variable rate plan changes month to month, depending on the market price of electricity. Because of the constant fluctuations of the electric market, it is likely that your electric bill will be different each month, even if you consume the exact same amount of electricity.
Is variable or fixed electricity better?
If you’re on your supplier’s standard variable rate tariff (SVR), you should definitely switch – you’re paying more for your energy than you need to. Fixed tariffs give you a certain amount of peace of mind – they’re less of a gamble and you don’t have to worry about price rises. And in many cases they’re cheaper too.
What is a variable electricity plan?
What Are Variable Rate Electricity Plans? With variable rate plans, the amount you pay fluctuates with the market. This can mean your rate changes monthly or even hourly. The benefit of this type of plan is that if the market price goes down, so will your bill.
What does variable mean in electricity?
A “fixed price” energy tariff means that your unit price for gas and electricity will not change for the duration of the plan. A variable rate means your energy price can vary during the plan.
What type of variable is electric bill?
Utility bills can be considered both fixed and variable expenses. If a manufacturing business heavily dependent on electricity begins to use more electricity because its sales have increased creating a demand for more product, then electricity is a variable expense.
Will electricity prices go up in 2021?
Our electricity retail market offers in NSW, ACT, SA and QLD. Our current electricity retail market offer rates will change on 1 July 2021.
Who is the cheapest energy supplier in the UK?
Top 10 cheapest energy tariffs
Are electricity bills variable costs?
The cost of electricity is an indirect cost since it can’t be tied back to the product or the specific machine. However, the cost of electricity is a variable cost since electricity usage increases with the number of products that are produced or manufactured.
What is a variable plan?
A variable-benefit plan is a type of retirement plan in which the payout changes depending on how well the plan’s investments perform.
What’s a variable rate plan?
Under a variable rate plan, the money you spend each month on energy depends on fluctuations in the market. This means the rate you are charged for the electricity and/or natural gas you use can change monthly, weekly, or even by the hour.
Are energy prices worth fixing?
If wholesale energy prices are high, fixed-rate energy deals could cost more. But you may consider this a premium worth paying in return for the guarantee they offer that the unit energy cost won’t change. As a general rule though, you will pay less by opting to fix the cost of your energy.
Should I do variable or fixed gas rate?
With fixed energy rates, you may pay a little more for your energy to gain that price stability. Variable-rate plans are usually better for risk-takers, who like to stay current with the energy market and possibly save some money on their utility bill.
How do variable tariffs work?
A variable tariff means that the price you pay for each unit of energy can go up and down at any time during your period with a supplier. … The key to a variable tariff is that the supplier can change things whenever they like and for any reason, although they should inform you if prices are set to go up.