Standard variable rate energy tariffs (SVT)
Find out more about standard variable tariffs - how they work, their benefits and whether a standard variable tariff is best for your home.
What is standard variable rate energy and how does it work?
Standard variable energy (SVT) tariffs are usually an energy supplier's most basic tariff. Variable tariff rates (how much you pay per unit of energy you use) go up and down in price every three months, depending on factors affecting the energy market.
- If wholesale prices (the costs energy providers buy energy at, before selling it to you) go down, then the cost of a variable tariff will also go down, meaning you'll pay less for your energy
- But, if wholesale prices go up, your SVT rates will also go up, so you'll pay more for the energy you use
- Since 2019, SVT rates have been capped by Ofgem (the energy industry regulator) to make sure people aren't paying more for their energy than the government considers as fair
- Standard variable tariffs are usually the same price as Ofgem's price cap
Comparing standard variable, tracker and fixed tariffs
Standard variable tariffs
- Energy rates go up and down in line with Ofgem's price cap and wholesale energy prices
- The rate price is usually reviewed every three months, which means the price you pay for energy can change, by going up or down, each quarter of the year
- No contract
- No exit fees
Tracker tariffs
- Energy rates go up and down in line with Ofgem's price cap and wholesale energy prices
- The rate price is usually reviewed every three months, which means the price you pay for energy can change, by going up or down, each quarter of the year. See our price cap predictions
- Your standing charge usually stays fixed - this can make a tracker tariff cheaper than a standard variable tariff
- You'll have a contract with your energy provider
- Exit fees may apply
Fixed price tariffs
- Locking in your prices with a fixed price energy tariff means no nasty surprises
- Fix your rates and standing charges
- Monthly budgeting is easier
- If wholesale energy prices go down, you won't get a cheaper rate price
- You'll have a contract with your energy provider
- Exit fees may apply
How to change from SVT to another tariff
It's easy leaving a standard variable tariff as there's no end date or contract to consider.
To switch energy supplier or change tariff with the same energy provider, simply get a quote!
Does a standard variable energy tariff end?
No - standard variable tariffs don't have end dates or contracts.
- You can leave at anytime
- As there are no exit fees with this type of tariff, it's free for you to leave - providing you're not in debt to your energy provider
Benefits and drawbacks of a standard variable energy tariff
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Moved house?
If you've just moved into a new home, that you're either renting or bought, most likely, the property already has electricity being supplied. If you hadn't organised a new contract with an energy company before moving in, you'll have been automatically placed onto a Deemed tariff with the energy company the previous owners or tenants used. A Deemed tariff is also a variable tariff - the energy unit rates can go up or down.
It's important to check what the tariff rates are that you're paying. The Deemed tariff could be the energy company's most expensive tariff.
How to check if I'm on a variable tariff?
If you've just moved into a property with electricity and gas already supplied, but you don't know who supplies your energy, it's easy to find out!
Electricity
- Go to the Energy Network Association
- You'll need to find out who your Distribution Network Operator (DNO) is (they look after the electrical network in your area). To find who your DNO is, enter your postcode into their site.
- Call your DNO, they'll let you know who currently supplies your electricity.
You can also get your electricity Meter Point Administration Number (MPAN), which tells your energy supplier where your meter is and your electricity supply number.
Gas
The Meter Point Administration Service can tell you who your gas supplier is.
- Go to the Meter Point Administration Service
- Fill in your postcode to find out who supplies your gas
- Or, call them on 0870 608 1524 (calls to this number are charged at 7p per minute, plus your phone company's access charge)
You can also get your Meter Point Reference Number (MPRN), which tells your energy supplier where your meter is and your gas supply number.
Should I switch to a fixed rate tariff?
Deciding whether to switch to a fixed energy tariff depends on how your household uses energy.
Look beyond just the rate. It's always important to consider:
- Contract length, exit fees and customer service: A well-chosen fixed deal can provide peace of mind and financial stability in an ever-changing energy market!
- Price cap: If you’re on a standard price-capped tariff, compare it against fixed-rate options. Ofgem's energy price cap limits how much energy companies can charge rates for each gas and electricity unit, but it changes every three months. It's worth researching how much it may change over the next year. Some fixed energy plans are cheaper than the price cap. To help you better understand how energy prices may change in the future, head to our price prediction page.
You may find our blog a handy read: should I fix my energy tariff?
Or, find out more about tariffs in our Help Centre FAQs
Frequently asked questions about standard variable price tariffs
Which is better fixed or variable energy rate?
To work out if a fixed price tariff or a variable energy tariff is better for your home, you need to think about your budget and how comfortable you feel about a tariff that may change its unit price every three months, or remain fixed for a longer period of time. If you fix you may have to pay an early exit fee if you choose to switch to another cheaper tariff, but you could pay more long-term staying on a standard variable tariff. If you're not sure, why not look at our forecast information on the price cap and the changes we predict will happen to the price cap?
Are all standard variable tariffs the same?
No, different energy suppliers charge different standard variable rates. It's worth comparing energy providers. Get a energy quote to compare!
Are variable energy tariffs worth it?
Variable tariffs can be a great option if you don't want to be fixed to a contract for a period of time, or prefer the flexibility of prices changing in line with wholesale energy costs. It's worth considering the benefits and how they suit your household needs, before making a decision.
How do variable energy tariffs work?
Standard variable rate tariffs change every three months in line with Ofgem's price cap this means:
- The energy unit rate you pay for energy fluctuates depending on the energy price changes in the market
- Save more when energy rates are low
- Your energy bill will go up if unit rates rise
How often do variable energy rates change?
Typically variable energy rates change every three months. The prices are reviewed in January, April, July and October. This means each quarter the unit price you pay for energy on a variable rate tariff could go up or down.
How often do prices rise on SVT?
SVT prices may change every three months when Ofgem reviews the unit rates people pay for their standard variable rate energy.
Information about energy tariffs and more!
Visit our Energywise blog area for more news, guides and advice.
To find more answers to frequently asked questions, visit our Help Centre.
Compare energy tariffs
Energy tariffs are how you pay for the energy you use in your home. Depending how you like to pay for energy and how your homes uses it, will affect which tariff is best for you. Read our handy guide to choose a tariff that's best for you.
Switching energy suppliers
Not sure how to switch? Our quick four-step change supplier page explains what to do. And if you have more questions, read our comprehensive guide on energy switching.
Find the best supplier and deal for you
Everything you need to know from understanding different energy tariffs to how payment types can affect your bill! Read our handy guide to compare energy suppliers and deals.