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Standard rate energy tariffs

What’s makes an energy plan standard?

Find out what makes an energy plan ‘standard’, whether you’re on a standard rate energy plan and what to do about it if so

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What is a standard variable rate energy tariff?

A standard energy plan (or standard variable rate tariff) refers to an energy supplier’s basic, variable rate plan. Sometimes the plan name itself will have the word "standard" in it, but often it will not.

This standard plan is usually the most expensive tariff the supplier offers.

A supplier’s standard plan is what any new customer that does not request a specific plan (such as a homemover) will be placed on: a default tariff.

For example, if you move house, you inherit the supplier of the previous tenant, and will automatically be placed on their standard plan (also known as standard variable rate tariff) when the supplier takes you on.

This plan will be a "variable rate" which means your unit rate costs can go up or down at any time. More often than not, they will go up. These plans are the first to be affected when the energy companies announce an energy price rise. Either way, the rate is almost always the most expensive one you could be on, so it's important to compare energy deals and switch as soon as you can.

On the plus side, standard variable rate plans do not have an exit fee. That means you are free to switch to a new deal without facing a penalty at any time, because there is no set end date. As a result, these plans are sometimes referred to as "evergreen" tariffs.

Pros and cons of standard variable rate plans

Pros

None. In most cases, it's likely the most expensive your supplier will offer. However, the one positive to this plan is that it will not have exit fees. You’re free to switch to a better plan at any time (and you should, as soon as you can).

Cons

You’ll pay more — as mentioned, standard variable rate tariff plans are very often the most expensive plan you can be on.

You’re not protected from price rises. Standard variable rate plans are the ones affected when suppliers announce price rises.

Are you on a standard rate energy tariff

How can I check if I’m on a standard energy plan?

If you have never switched energy supplier, you are most likely on your supplier’s standard (and likely the most expensive) energy plan.

You might also be on a standard plan if you had fixed rate plans that have expired and you did not elect to switch to a new plan. Customers can be automatically rolled on to a supplier’s standard variable rate plan once their fixed rate deal comes to an end, though new rules from Ofgem are changing that.

Some gas & electricity suppliers are rolling customers onto fixed rate plans “temporary tariffs”. These tariffs are very similar to — and likely to be as expensive as — a standard plan, with the exception that the rate is locked in for a year.

A temporary tariff will protect you from a price rise but not be the cheapest energy deal you can get. It will not carry an exit fee, so even though you’re protected from an energy price hike, you should switch to a cheaper deal straight away.

To check if your plan is standard, check the table below for a list of the big six's standard plan names and compare it against the name on your bill. For more information on energy bills, read the guide Energy bills - understanding utility bills

Big six's standard energy plans

SupplierPlan namePrice
SSEStandard£1136Compare now
E.ONE.ON Energy Plan£1137Compare now
ScottishPowerStandard Online£1137Compare now
npowerStandard SC£1137Compare now
EDF EnergyStandard (Variable)£1227Compare now

Prices are based on average bill sizes for a medium energy user on a dual fuel plan paying by monthly direct debit, and averaged across all regions. This table is updated hourly from uSwitch's database of all standard plans from the big six: British Gas, E.ON, SSE, ScottishPower, npower and EDF Energy.

Compare those energy plans to these energy plans

We've stated a few times that standard plans will be the most expensive energy tariffs out there. You can see the difference for yourself when you compare the standard plans from the big six to some of the cheapest deals on the wider market.

SupplierPlan nameTariff typePrice
Utility PointUp Energy SaverFixed for 12 months£902Compare now
People's EnergyThe People's TariffFixed£946Compare now
Avro EnergySimple and WinterFixFixed for 12 months£987Compare now
LumoApp Only Fixed v17Fixed for 12 months£987Compare now
Pure Planet100% GreenFixed£997Compare now
Green Network EnergyGNE Cosy Christmas 18 Month FixFixed for 18 months£1005Compare now
First UtilitySmart First February 2020 v2Fixed until 29 Feb 2020£1010Compare now
Octopus EnergyOctopus 12M FixedFixed for 12 months£1012Compare now
Gulf Gas and PowerGulf Home Fixed 12 January 20 v1Fixed until 31 Jan 2020£1012Compare now
Igloo EnergyIGLOO PIONEERFixed£1021Compare now

Prices are based on average bill sizes for a medium energy user on a dual fuel plan paying by monthly direct debit, and averaged across all regions. This table is updated hourly from uSwitch's database of all plans on the open market that are available in at least 7 of the 14 regions, with duplicate supplier plans removed.

Checking your annual energy statment

How to change from a standard energy plan?

Switching energy from a standard energy plan is easier because you can be assured you will not pay an early exit fee. To switch away from a standard energy plan, run an energy comparison to see all available plans for you.

uSwitch can help carry out the switch for you and no cables or pipes will need to be replaced or changed. The switching process happens at an administrative level between the suppliers so that your energy service is never disrupted.

Comparing and switching energy suppliers only takes a couple of minutes and you'll be notified of the date your gas and/or electricity supply will be switched. To find out more read the uSwitch guide. How to switch your supplier for gas and electricity.

What are the benefits of a fixed plan?

A fixed rate plan gives you a guaranteed rate on the cost per unit of your energy. The rate will not go up during the length of your contract even if the supplier has announced energy price rises.

It can also provide peace of mind, but it's a good idea to keep looking out for better deals every now and again, and especially during the last few months of your deal.

Remember, once your fixed rate plan comes to an end you will automatically be switched to a more expensive standard variable rate tariff.

Read more…

Worried about your winter energy costs?

Don't get caught out in the cold. Compare fixed rate energy deals now to secure your costs this winter!