Fixed or variable electricity tariff: which is better?

When concluding a new power contract, you may choose from a fixed or variable fee for power. Both costs have their professionals and cons. Which is the great preference: the constant or variable energy tariff?

Choose a hard and fast or variable power rate
A function of the fixed price is that it does no longer alternate for the duration of the complete term of your power settlement. You consequently pay the equal price at some stage in your settlement. This way you already know exactly where you stand and you’ll not be confronted with surprises.

It works in a different way for variable fees. The variable prices trade twice a yr: on January 1 and July 1. You therefore have to cope with rate modifications in the course of the time period of your contract. A rate exchange can mean a lower or growth for your price. With variable costs, you consequently have less truth approximately the charge that you’ll pay in the course of the time period of your settlement.

View the benefits and downsides of the fixed and variable price underneath:

Tariff type Advantages Disadvantages
Fixed price strength
Rates stay the identical at some stage in the settlement duration.
Choice of agreement for 1 or three years.
Know where you stand.
You will now not gain from any fee drops.
Variable charge energy
Lower strength prices while fee falls.
Risk that charges will rise and so will your charge.
You can most effective select a agreement for 1 year.

Which is the quality preference: fixed or variable fee?
In fashionable, the flat rate is the great preference. This guarantees that you will preserve to pay the same fee for the whole time period of your electricity contract. For example, a contract with constant costs and a term of 3 years is a clever desire in case you see that the energy fees are low. You then restore those low prices for the next three years. Are the quotes high and do you want flexibility? Then the choice for a agreement of one year is more practical.

With a variable price, you restoration the applicable charges for 1 yr, however those exchange on 1 January and 1 July. This can paintings to your benefit, however additionally for your downside. It is smart to don’t forget cautiously which price fine fits your private scenario.

Energy constant or variable 2022
The variable fees trade yearly on 1 January and 1 July. The fixed costs trade month-to-month, but are fixed throughout your time period.

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