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Spiralling energy costs have forced many suppliers to remove their tariffs What this means for you:
Spiralling energy costs have forced many suppliers to remove their tariffs
What this means for you:
We believe in always doing the right thing for our customers – which is why we’d rather tell you now,
so you don’t waste time quoting if we probably can’t help you.
An SVT (sometimes called a standard energy tariff) is an energy supplier’s default tariff.
SVTs are usually the most expensive gas and electricity tariffs, because suppliers can change the unit rate prices at any time alongside wholesale energy prices. But the energy price cap does put a limit on the maximum you can be charged so when fixed tariffs are high, an SVT can be useful.
You’ll often find yourself on one of these tariffs when a fixed tariff plan ends and you don’t switch to another, or if you’ve never switched suppliers before.
SVTs do just what their name suggests – they vary the price you pay for energy.
But they don’t go up and down randomly; they reflect what your supplier pays to buy energy in the first place (wholesale energy prices). So if wholesale prices go up or down, your SVT may do the same. Depending on your supplier this may not always happen, and probably not immediately. Suppliers can be slow to pass on falls in wholesale prices to SVT customers.
Even if wholesale energy prices do drop, they usually only account for less than half your energy bill. You’ll still have to pay for the costs of delivering energy, meeting government environmental initiatives, taxes and operating costs. Not to mention your supplier’s profits.
That means even if you’re on an SVT, and you’ve heard energy prices are falling, you may not see a cut in your energy bill.
Usually SVTs are more expensive than fixed deals, but with the current energy crisis this might not be the case. If you do find one you’re keen on, these are the advantages and disadvantages to consider.
You’re not contractually bound to an SVT, so there’s no end date. Your rate simply goes up, down or stays the same according to the market and price increases decided by your supplier.
If you’ve never switched energy suppliers, you’re probably on your supplier’s SVT. This can also happen if your fixed tariff plan has expired, and you haven’t switched to a new plan.
Some suppliers are moving customers onto so-called “temporary tariffs”. These are very similar to SVTs, with the exception that the rate is locked in for a year.
Check your bill or ring your supplier to find out if you’re on an SVT. Different suppliers call their SVTs different names - like 'default' or 'standard' tariffs - so it’s worth double checking.
GoCompare has partnered with Energylinx, part of the GoCompare Group, to help you switch energy. Energylinx Limited is registered in Scotland, registration number: SC244794, registered office: the e Centre, Cooperage Way, Business Village, Alloa, FK10 3LP.