EnergyBroker Blog

Why a Fuel Variation Tariff is the best choice for your large business.

Written by Susanne Sweetman | 07-Aug-2019 10:56:36

 

What is an FVT gas account?

Any gas account that has an Supply Point Capacity (SPC) above 3000. Anything below that is considered medium or small.

 

How is FVT different to the more generic MBU (medium business user) or SBU (small business user) gas tariffs?

 

  • With MBU and SBU gas accounts, you have the option to either float on a standard variable rate, or to fix for a period of time, generally 12 or 24 months. A fixed rate will always be cheaper than the standard variable rate.

 

  • FVT accounts are similar in that you have the option to float on a variable rate (termed the default rate) or lock in on a fixed rate. The difference with FVT is that you can lock in for individual months across a 24 month period. So for example, if gas is cheap in Feb 2020 but expensive in Jan and March 2020, you can isolate Feb 2020 by locking in for that month while leaving the other months on default.

 

  • It is a very flexible tariff. The trick is that you have to know when gas is cheap and when it is expensive in order to lock in at the right time. That is where EnergyBroker comes in. We track the gas markets on a daily basis so that we are in a position to best advise you on where savings are to be made.