Gas and electricity bills often account for a large proportion of our monthly expenditure, yet many of us don’t take the time to explore the ways in which we can lower these outgoings. Many simply don’t understand the way the industry works, which is why we’ve provided an overview explaining the different gas and electricity plans available and how to find the most affordable options.
What are the main types of plan available?
In order to find the best deals for your circumstances it is essential to have a certain level of understanding of the three main price plans and what they entail. In your search for the best gas and electricity deal, you should find that each supplier provides you with a set of choices.
- Standard price plans – Unless you specifically request another option, this is the plan you will automatically receive from your supplier. Standard price plans are variable, which means that the amount you pay per electricity unit can fluctuate.
- Fixed price plans- With a fixed plan policy, the amount you per pay unit of electricity is set over a specific period, regardless of whether energy prices go up or down. When the set period agreed comes to an end, you will automatically be moved to the standard price plan unless requested otherwise.
- Capped plans- Capped plans are often described as a combination of the two plans. Whilst the plan is still variable, the price is still capped at a certain level. Like with the fixed price plan, once this set period is over you will be transferred to the standard tariff.
What are the benefits of each plan?
Each plan has its own set of advantages and disadvantages, but how you choose to view these may vary depending on your personal situation. Some may choose to opt for the standard price plan because there is the added benefit of saving money should there be a dip in prices, although of course this principle also applies should prices soar. For this reason, many opt for fixed price plans, offering a sense of reassurance at a time of constantly increasing energy prices.
For anyone whose ideals fall somewhere in the middle, the capped plan is certainly an advisable option. Whilst there is still the possibility to benefit from a dip in prices, you are still protected should prices soar.
How else can I save money on my gas and electricity plans?
The easiest and most efficient way to make savings on your gas and electricity plans is through a price comparison site. By comparing energy suppliers and price plans, you can find the most cost effective plan without spending hours trawling through each site examining a set of figures.
For those especially keen to make further savings on their policies, there are more ways to lower your gas and electricity expenses, including replacing traditional light bulbs with energy saving ones, improving your insulation and replacing out dated boilers, but to name a few ways to save on your utilities.