Procurement Fundamentals1 / 12
Tariff Structures & Pricing
Fixed vs variable; day-ahead, forward markets; unit rates, standing charges.
11 min read · Jacob Willis, Net Zero Lead · Last reviewed July 2026
Before you can buy energy well, you must understand how it is priced. Energy tariffs are more complex than a single price per unit, and understanding their structure is the foundation of effective procurement.
In this lesson
- 01Energy is not one price
- 02The components of an energy bill
- 03Wholesale and retail
- 04Time-of-use pricing
- 05Demand and capacity charges
- 06Why structure matters for procurement
- 07Sources and further reading