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What is an Energy Tariff?
An energy tariff is a plan for how much you’ll pay for gas and electricity – note, there is no mains gas available on Arran. An energy ttariff includes the rate you’ll pay for the electricity you use and a daily fee called a ‘standing charge’ – you’ll pay this no matter how much energy you use.
There are various types of tariffs but the two main types are –
- Standard Variable Tariff – your rate goes up and down with the price of energy.
- Fixed Price Tariff – your rate stays the same for the length of your contract.
If you use more energy at night
If you have storage heaters or change an electric vehicle overnight, a time of use tariff, sometimes called a multi-rate tariff could work out cheaper.
It charges different rates at different times of the day, these times will often be split into –
- Peak rate – sometimes referred to as a day rate
- Off-peak rate – sometimes referred to as a night rate
Energy companies charge less for an off-peak rate because there is less demand for energy.
If you have storage heaters
You may find it helpful to be on a specific time of use tariff such as Economy 7 or Economy 10. The number represents the number of hours you’ll get at the cheaper rate i.e. you get 7 hours of the off-peak rate per 24hrs. This is usually in one continuous block overnight e.g. from 11pm until 6am.
If you are on Economy 10, you may find the 10 hours are split into chunks throughout the day e.g. 1pm to 4pm, 8pm to 10pm and midnight to 5am.
Off-peak times will differ between suppliers so it’s important to check.
If you charge an electric vehicle
If you need to change an electric vehicle overnight, an electric vehicle tariff might work out cheaper for you. These are sometimes called EV tariffs.
It is important to check your tariff carefully to find out exactly what times are cheaper.
If you have a prepayment meter
You are still able to access various different tariffs on a pre-pay meter such as –
- A standard variable tariff
- A fix payment tariff
- A green payment tariff
Export Energy Tariffs
There are a wide range of export tariffs to suit different needs. Some tariffs suit those who have solar but no home battery or want to combine solar with EV charging. Some tariffs are designed if you have solar and a home battery. You are also able to get agile tariffs where the export prices change per half hour and are based on wholesale prices.
Smart Export Guarantee (SEG)
The Smart Export Guarantee was launched in 2020 and is a government backed initiative. The SEG requires some electricity suppliers to pay small scale generators for low carbon electricity which is then exported to the national grid.
Who is eligible?
- Anyone with an installation of one of the below technology types up to a capacity of 5 MW.
- Solar Photovoltaic (Solar PV)
- Wind
- Micro Combined heat and power (micro-CHP – max capacity is 50 kW for micro-CHP)
- Hydro
- Anaerobic digestion (AD)
The SEG Suppliers (the energy companies) determine the rate, contact length and other terms. SEG tariffs must always be above zero and payments are calculated by using export meter readings.
For more information please visit the ofgem website here.
Green Energy Tariffs
You should consider a green tariff, which uses 100% renewable energy, for example wind or solar. It’s important to check the wording carefully as some green or renewable tariffs may not contain any or all renewable energy. Instead some suppliers may say the money from the tariff will be invested in renewable energy sources.
Low Carbon Tariffs
Picking the right tariff depends on the low carbon technologies you own (i.e. EVs, heat pumps, solar or battery storage) and your energy use. Many companies offer a wide range of tariffs as well as online quizzes to find out what tariff may suit you best.
Total Heat Total Control
In June 2025, Total Heat Total Control will stop working due to the Radio Teleswitch Service Turn off. For more information on the turn off, please see our blog article here.
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