ECONNEX

Fixed Vs Variable Rates: Which Can Save You More?

Fixed or variable rates? Find your best savings match! Explore the pros and cons to make an informed choice for your budget.

Fixed Vs Variable Rates: Which Can Save You More?

Published on

By Rachael Rogan-Miner

Energy Comparison

AGL has announced plans to give automatic discounts to customers paying the most for electricity. Econnex keeps you up to date with new electricity plans, rates, and discounts. We compare energy and gas prices across NSW, QLD, VIC, and SA.

What type of energy consumer are you? Do you frequently explore the energy market to look for the best deal, or you choose to be content with your fixed rates?

First, let’s differentiate fixed and variable rates to help you understand better.

Variable rate energy plan
  • A variable rate is the standard energy plan offered by most of the retailers in NSW, VIC, SA, and southeast QLD. Your energy cost is highly dependent on market prices. The higher the market price, the higher your rates or vice versa.
  • No exit fees. So, it’s easy to switch whenever you want and take advantage of the best energy deals in your area.
  • Market prices are continuously rising for the last two years.
  • It gives you the freedom to change plans and locations without hassle as you are not locked into a long-term contract.
  • The instability of energy market prices will increase your energy rates.
Fixed rate energy plan
  • A fixed rate energy plan is an agreement which usually lasts from 12 – 24 months, where the electricity supplier does not change rates per kilowatt-hour during the contract period.
  • A termination fee of around $50-$100 is required to be paid if you wish to leave before the contract ends.
  • Even if market prices climb up,  your rates remain the same.
  • You’ll get stuck paying a higher price until your contract ends while others can pay less by switching.
  • It prevents surprise bills and convenient from a budgeting point of view.
Fixed vs Variable energy rates per state

Based on these figures, you’ll probably choose a variable rate offer without a second thought. But do not forget to consider things like rising prices and convenient budgeting.

If you’re sick of switching energy retailer you may choose a fixed rate plan. However, if you enjoy shopping around to find the best deal, go with a variable rate plan.

Which way should you go? Start by comparing your gas and electricity rates with Econnex. 

Energy Comparison
Related Blogs
5 Common Mistakes Reading Energy Pricing Fact Sheets
Energy pricing fact sheets made simple! Avoid these common mistakes when reading them to make better choices for your utility plans.
5 Common Mistakes Reading Energy Pricing Fact Sheets
Tips To Save Money Effectively
Money-saving made easy! Unlock practical tips and tricks to maximize your savings and achieve financial goals with confidence.
Tips To Save Money Effectively
Tenants Guide: Switching Energy Plans
Tenant's energy plan switch made easy! Empowering renters to navigate the process hassle-free and find better energy solutions.
Tenants Guide: Switching Energy Plans
Factors Affecting Energy Market Prices
Unravel energy price dynamics! Explore key factors influencing the energy market, shaping prices and impacting global economies.
Factors Affecting Energy Market Prices
Know More About Energy Market
Unlock energy market insights! Learn about supply, demand, pricing, and trends shaping the industry for a sustainable future.
Know More About Energy Market
How to Save Energy Through Recycling?
Save energy, save the planet! Recycle paper, glass, plastic, and metal to reduce waste and lower greenhouse gas emissions.
Save Energy Through Recycling