If you’re worried about the rise in energy prices this article will help you get a heads up on the cheapest variable-rate electricity tariffs currently available.
The energy price hike is featured on the TV, radio and in newspapers everyday it seems. It’s unnerving, but there is still plenty to be done to limit the potential cost and issues it could cause you as an individual. One way is to keep an eye on the cheapest electricity supplier and cheapest variable energy rates, which we discuss below. We’ve also got a quick look at why the rates are rising, and how variable and fixed-rate tariffs differ, so you can feel totally in the know. Let’s take a closer look:
Why Are Energy Prices Rising?
The reason energy prices are rising is complex, but overall it is because of the following factors:
- Energy shortages worldwide
- Increase in energy demand following the pandemic
- Renewable energy sources not able to produce lots of power during winter
- Winter boosting the need for more energy to heat homes
- More people working from home due to the pandemic
- Ofgem energy price cap increasing to £1,277 and potentially going up another 50% in April
You can read more about the energy crisis in this article. Please, though, remember that as scary as it sounds, there is plenty to be done to avoid it causing you lots of problems. There are lots of actions you can take to reduce your energy consumption, and there are fantastic energy rates still available from the cheapest energy supplier that you can switch to before any more changes occur.
What Is The Difference Between Variable-rate And Fixed Contract?
A fixed-rate tariff is where you agree on the rate you will pay for your energy over a certain amount of time, which is usually 12, 24 or 36 months. A variable tariff often fluctuates because it reflects the current cost of energy in the overall market. The main benefit of a variable rate is that it could be cheaper than a fixed rate, or at least be cheaper at the time you sign up. Of course, you then run the risk of it rising, whereas you at least know the higher rate you have signed up to with a fixed rate contract.
Which Variable Electricity Tariffs Are The Cheapest?
Variable electricity tariffs are different depending on your postcode area, your circumstances, your needs and they also vary through various other factors that change the rates at any given time. For that reason, please take the below figures as inspiration only, and use comparison sites for the latest information and details based on the factors we mentioned above.
The cheapest variable electricity tariffs currently available:
|Supplier||Tariff||Annual Cost (Based On 2,900 kWh Use)|
|Bulb Energy||Simple energy||£692.626|
|Orbit Energy||5% OFF 4 LIFE||£645.532|
|Outfox The Market||One Green Flex||£640.21|
|Together Energy||Green Together Smart Sun ExcVar||£548.30|
You Can Stay Ahead Of The Energy Crisis
By being clever and researching your options you don’t have to fall victim to the energy crisis, at least not too much. Get individual quotes, shop around and stay ahead of bigger changes that are due to come in place. It won’t be easy, but we can all do a lot to avoid this challenging problem being too impactful on our bank balances in the coming months.