Standard variable rate/default tariff
You are likely to be on a standard variable rate, or ‘default’ tariff, if you have never switched energy provider or haven’t done so for a couple of years. These tariffs are typically the most expensive on the market. Energy providers typically roll customers onto this type of tariff once they come to the end of their deal term, which is why it is important to remember to switch again.
Fixed tariff
Unlike a default/variable tariff, a fixed tariff guarantees that you will pay a set amount for a unit of energy throughout a specified term – usually 12 or 24 months. It is often the cheaper option, and you know there will be no price rise during the term.
Economy 7/10
Some providers offer Economy 7 and Economy 10 tariffs which charge a different price for a unit of energy in the day than at night. The number following Economy refers to the number of hours you will be charged lower night-time rates.
You’ll need storage heaters to make the best use of such a tariff. You’ll also have a special meter.
Cooling-off period
During the cooling-off period, which is the first 14 days of your contract, you are allowed to opt out of the deal if you change your mind, at no cost. You’ll simply continue with your existing provider and tariff.
Annual statement
A document provided by the provider to a customer detailing their tariff, consumption over the past 12 months, and an estimate of the next year’s energy costs.
Automatic contract rollover
Under the terms of most energy contracts, once you have reached the end of the specified term for a fixed term tariff, your provider can extend it automatically or roll you on to another fixed contract unless you switch to a different deal.
kWh/ mWh
kWh stands for kilowatt-hour, the unit of measure used by energy providers to calculate your gas and electricity consumption. A 1000 kWh is a megawatt-hour (mWh).
Energy Ombudsman Service
Customers can escalate complaints which they feel have not been adequately resolved by their provider to the ombudsman, which deals specifically with energy suppliers and energy network operators.
Standing charge
A daily or monthly fee that you pay your provider to supply your energy, including maintenance costs.
Exit fees
If you have a fixed rate, fixed term tariff and you decide to switch to another deal before the end of the term, you may be charged an exit fee by your provider – this could be £30 per fuel (gas and electricity) or more. But exit fees cannot be charged if you are within 42 days of your tariff’s scheduled end date.
Vulnerability Commitment
If a supplier is a member of the Vulnerability Commitment it must promise to provide enhanced support to those who are fighting illness or are in financial difficulty.