Fixed vs. Variable Tariffs: Which One Works Best for You?

At a glance:

  • Fixed Tariffs: Provides steady energy rates over a set period, ensuring stability. Shields from market shifts but may miss out on price drops.
  • Variable Tariffs: Rates change with markets, offering savings in good conditions. Flexible, yet bills could rise during market highs.
  • Both tariffs are versatile on their own and serve best to its particular consumer type, so choosing the one that suits you is imperative. 

Are you tired of feeling like your energy bills are a roller coaster ride? Buckle up because we’re about to embark on a journey of comparing energy tariffs. Picture this: you have the power to steer your energy costs, choosing between the stability of a fixed tariff and the flexibility of a variable tariff. It’s time to demystify these choices and empower you to make the best decision for your home or business. Welcome to the ultimate guide on fixed versus variable energy tariffs!

Decoding Energy Tariffs: Finding Your Perfect Match

When it comes to energy tariffs, you’re presented with two main options: fixed and variable. Both have their unique perks and considerations. Let’s delve into what each entails.

Fixed Tariffs:

Imagine the peace of mind that comes with predictability. Fixed tariffs offer exactly that – a steady, unchanging energy rate for a specified period, often one year, but sometimes longer. Think of it as locking in your energy rate, shielding you from sudden price hikes due to market fluctuations. This can be a lifeline for budget-conscious individuals and businesses, offering stability and ease of planning.

However, remember that stability can have its trade-offs. While fixed tariffs shelter you from market volatility, they might not let you take full advantage of potential price drops. It’s like buying a ticket for a specific train; you’ll reach your destination, but you won’t benefit if other trains offer cheaper fares.

Variable Tariffs:

Variable tariffs, on the other hand, ride the waves of market changes. Your energy rate can fluctuate, sometimes rising due to increased demand or unforeseen circumstances and occasionally dropping when the market is favourable. This dynamic nature allows you to potentially seize cost-saving opportunities.

Variable tariffs suit those who are comfortable with market uncertainties and enjoy capitalising on potential savings. However, it’s important to remember that what goes down can also go up, so your bills might not always be as steady as you’d like.

Comparing the Options: Fixed vs. Variable Tariffs

Choosing between a fixed and a variable tariff hinges on your priorities. Are you seeking financial predictability and peace of mind? A fixed tariff could be your ideal match. It’s like having a set menu at a restaurant – you know exactly what you’re getting.

On the other hand, if you’re a savvy energy consumer who loves monitoring market trends and adapting to change, a variable tariff might be more your style. It’s like being at a buffet, with the freedom to choose from various options based on your appetite for risk and reward.


Think about your personal circumstances. Are you the type of person who prefers to plan and budget meticulously? Perhaps you have a fixed monthly budget and need to know exactly how much you’ll be spending on energy each month. In this case, a fixed tariff might be your best bet. It’s like having a monthly subscription – you know the cost won’t change, which can help you manage your finances with ease.

On the other hand, maybe you’re someone who thrives on flexibility and is always on the lookout for a good deal. You might enjoy tracking market trends and making adjustments based on the ever-changing energy landscape. If this sounds like you, a variable tariff could align with your preferences. It’s like shopping during a sale – you might score a great deal when prices drop, but you’re also open to paying a bit more when they rise.

Ready for the next stride towards energy empowerment? You can now link up to Australia’s most trusted energy comparison platform that serves as a guiding compass in the intricate domain of electricity and gas tariffs, skilfully leading the way to the most suitable plan based on your requirements. Bid farewell to perplexity and say hello to substantial savings – the time is ripe to initiate the transition!

Marion Perdomo

Marion Perdomo