What is a standard variable energy tariff?

A standard variable tariff (SVT) is a pay-as-you-go energy plan with no fixed end date. Your unit rates and standing charges can go up or down over time, reflecting wholesale costs and regulatory changes. It’s often the default tariff you move onto when a fixed deal ends.

Is a standard variable tariff cheaper than a fixed tariff?

It depends on market conditions. SVT prices can fall as well as rise, while fixed tariffs lock in rates for a set period. If prices drop, an SVT may save money; if prices rise, a fixed deal can provide price certainty. Compare your annual costs and terms before deciding.

How often can prices change on a standard variable tariff?

Prices can change at the supplier’s discretion and in line with regulation. In Great Britain, default tariff rates are constrained by Ofgem’s price cap, which is reviewed periodically (currently quarterly). Always check your supplier notifications for any upcoming changes.

Are there exit fees on standard variable tariffs?

Standard variable tariffs typically have no exit fees, so you can switch to another tariff or supplier at any time. Always confirm the terms on your specific plan before switching.

Should I switch from a standard variable tariff to a fixed deal?

Consider switching if you value budget certainty or if a fixed tariff offers a lower estimated annual cost than your current SVT. If you prefer flexibility or expect prices to fall, staying on an SVT may suit you. Review unit rates, standing charges, contract length, and any exit fees before you decide.

How can I reduce my energy costs on a standard variable tariff?

Reduce costs by improving energy efficiency at home or on site, providing regular meter readings or using a smart meter for accurate billing, and comparing tariffs to ensure you’re on a competitive plan. Small changes to heating, hot water, and appliance use can make a noticeable difference.

How do I switch from a standard variable tariff?

Have a recent bill to hand, compare available tariffs, and complete a switch request with your chosen supplier. You’ll need details like your address and meter numbers. Switching usually takes around 5 working days, and your supply will continue uninterrupted during the process.

Standard Variable Tariff (SVT) in the UK: What It Is, How It Works, and When to Switch

A clear, up-to-date guide to Standard Variable Tariffs (SVTs), the Ofgem price cap, and how Energy Plus can help you compare options and move to a better deal with confidence.

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At a glance

SVT = a supplier’s default tariff where prices can go up or down
Domestic SVTs are limited by Ofgem’s price cap (reviewed quarterly)
Usually no exit fees – switch any time
Rates can change, so bills vary with market conditions
Businesses are not covered by the domestic price cap

What is a Standard Variable Tariff?

An SVT (Standard Variable Tariff) is a supplier’s default energy plan for gas and/or electricity. If your fixed deal ends and you don’t choose a new tariff, you’ll usually be moved to an SVT. The key feature is that the unit rate (p/kWh) and sometimes the standing charge (p/day) can change. This means your monthly bill can rise or fall in line with wholesale energy costs and regulatory updates.

SVTs are often flexible and have no exit fees, making them a short-term option while you assess the market. However, they can be more expensive than a competitive fixed deal over time, especially when wholesale prices increase.

SVT terminology made simple

Unit rate: The price you pay per kWh of energy you use.
Standing charge: A daily fixed cost to maintain your connection.
Default tariff: Another name for SVT – the tariff you fall onto if you don’t choose a new plan.
Exit fee: A charge for leaving a tariff early; usually not applied on SVTs.

How the Ofgem price cap affects SVTs

For domestic customers in England, Scotland and Wales, Ofgem sets a price cap that limits what suppliers can charge per kWh and for standing charges on Standard Variable Tariffs. The cap is reviewed every three months and reflects changes in wholesale prices, network costs, policy costs and supplier operating costs. It is a cap on unit prices, not a cap on your total bill — your total cost still depends on how much energy you use.

Business customers are not covered by the domestic cap. Business variable tariffs can move with the market without cap protection, so risk management and contract timing are important.

Good to know: The cap varies by region and meter type. Suppliers can price below the cap, but not above it for domestic SVTs.

SVT vs fixed tariffs: which is right for you?

Choosing between variable and fixed rates depends on your appetite for risk, need for flexibility, and market conditions. Here’s a quick comparison:

Feature	Standard Variable Tariff	Fixed Tariff
Price certainty	Rates can go up or down	Unit rates/standing charge locked for the term
Flexibility	Usually no exit fees	May have exit fees for early termination
Protection	Domestic cap applies (not for businesses)	No cap but protection via fixed rate
Best when	You want short-term flexibility or expect prices to fall	You want budget certainty or expect prices to rise

Who might benefit from an SVT?

Home movers: Recently moved and need a flexible option before deciding on a new deal.
Undecided switchers: Waiting to see where the market settles over the next quarter.
Short-term tenants: Prefer no exit fees or long commitments.
Businesses watching the market: Considering a flexible strategy while assessing consumption or awaiting budget approvals (note: no cap protection).

When a fixed deal may be better

If you value predictable bills or expect market prices to rise, a fixed tariff can lock in rates and protect you from volatility. Many households and businesses choose fixed terms to aid budgeting and cash-flow planning.

How Energy Plus helps you compare and switch

Usage check: We assess your kWh usage, meter type, and region to benchmark realistic pricing.
Market scan: We compare leading suppliers across SVTs, fixed and tracker options.
Personalised recommendations: We present clear choices with pros and cons based on your goals.
Hassle-free switch: We manage the process end-to-end and keep you updated. No hard sell, ever.

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Domestic vs business: key differences

Households

SVTs protected by Ofgem’s price cap
Easy to leave; usually no exit fees
Switching can be fast with no engineer visit required

Businesses

No domestic price cap on business tariffs
Flexible, pass-through and fixed options available
Contract timing and risk strategy matter more

Smart meters and SVTs

Smart meters can help you track usage in near real-time and identify savings, whichever tariff you choose. Some tariffs (including time-of-use or tracker products) require a smart meter to function correctly.

Frequently asked questions

It depends on the market. If prices fall, SVTs can become cheaper; if prices rise, a fixed tariff may save you money. We compare both to show what’s best for your usage right now.

No. The cap limits unit rates and standing charges on domestic SVTs, not your total bill. Your final cost depends on how much energy you use.

Typically no. Most SVTs have no exit fees, so you can switch at any time. Always check your supplier’s terms to be sure.

Suppliers can change SVT rates with notice. For domestic customers, changes generally align with Ofgem cap updates, which are set quarterly, but timing can vary by supplier.

Without cap protection, variable business rates can move quickly. Review your consumption profile, risk tolerance, and timing. We can model fixed vs flexible strategies and negotiate terms to suit your budget.

You may be able to switch if your debt is recent and below certain thresholds, but rules differ between domestic and business accounts. Speak to us and we’ll help you understand the options.

Tips to reduce costs while on an SVT

Submit regular meter readings or use a smart meter to ensure accurate bills.
Optimise heating schedules and hot-water timers; small changes can add up.
Check for dual-fuel or direct-debit discounts where available.
Review usage seasonally and compare fixed deals before winter peaks.

Content last reviewed: November 2025. This page provides general guidance only and is not financial advice.

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