Which tariff is best for domestic consumption? Nowadays, there are
many providers to choose from, and a range of tariffs, broadly characterised
as follows:
- Fixed:
the standing charge and price per kWh are fixed for a contract period
(typically 12 months), offering peace of mind and stability for household
budget, but also the risk of paying over the odds if wholesale prices fall
- Variable:
price are reviewed every three months to follow wholesale market trends,
meaning that the standing charge and price per kWh may vary from one
quarter to the next
- Daily:
another more variable choice, made possible by remote access to readings
from a smart meter, where the prices are updated once a day to follow
market trends, possibly capped at some uncomfortable but finite level
- Half-hourly:
an even more dynamic approach (again, enabled by smart meter) where the prices
applied are based on current movements in the wholesale market
so the customer benefit from greener energy when prices are low and minimise
consumption at peak times when prices are high using widely-available trackers.
The simple tool below calculates domestic utility bills over
a twelve-month period and illustrates how these tariff options compare.
Figure 1: Live snapshot from the model
If you work for an energy provider and would like to make a tool like this
available to your customers, Implied Logic can work with you on an approach
which suits your specific tariff portfolio and current market position.
Our eSTEM technology
generates the online version of the model automatically from a desktop
version you have already tested, which means faster updates with minimal
maintenance.