As with any energy plan, variable rate tariffs provide a certain defined rate for your gas and/or electricity, but unlike fixed rate tariffs, with variable rate tariffs this rate can go up or down.
In this respect variable rate tariffs don’t offer the same level of protection against energy price increases as fixed rate tariffs do, however the cheapest tariff available on the market at any time is usually a variable tariff. So it is really a balance between paying lower energy costs in the short term against the risk of price increases and a potentially higher energy bill in the longer term.
The table below shows the top variable rate tariffs currently available on the market. If you want to see how any of the following variable rate deals compare with the rest of the energy market, enter your postcode to the side and click the ‘Compare prices’ button. Alternatively, see below the table to find out more about variable rate tariffs.
|Supplier||Tariff||Average Annual Bill*|
|SECURE 1 YEAR FIXED||£850|
|Fixed Until May 2018||£882|
|Direct Saver 2017 v2||£889|
|TOTO Discount Variable Saver 2||£890|
|Octopus 12M Fixed||£912|
*Based on usage of 3,100kWh of electric per year and 12,500kWh of gas per year. Shows average price across all regions. Assumes payment is made by Monthly Direct Debit. Only showing tariffs which are generally available across most of the UK
Variable rate tariffs are great for those who are looking to pay the lowest cost for their energy usage in the short term, and are willing to sacrifice any long term security in the cost of their gas and electricity bills to do so.
One important thing to note is that as with fixed rate tariffs, variable rate tariffs can also come with cancellation fees.
This means if you decide to switch away from your tariff before the term end date, you will have to pay a fee. The majority of variable tariffs don’t have a cancellation fee but some do so it is important to check this before signing up. You can check whether a certain tariff has a cancellation fee using our cancellation fee checker tool.