-
What are fixed-rate tariffs?
Fixed-rate tariffs are energy plans where the price you pay per unit of energy remains constant for a set period, typically one to three years. This means that regardless of fluctuations in the energy market, your rate stays the same, providing predictability in your energy costs.
-
How can fixed-rate tariffs help save on energy bills?
Fixed-rate tariffs can help save on energy bills by locking in a lower rate compared to the expected price cap increase. With the current price cap expected to rise to £1,723, switching to a fixed-rate tariff could save households between £175 and £300, depending on their energy consumption.
-
What should I consider before switching to a fixed-rate tariff?
Before switching to a fixed-rate tariff, consider the length of the contract, any exit fees, and your current energy usage. It's also important to compare different tariffs to ensure you're getting the best deal. Additionally, think about whether you might move house or if your energy needs might change during the contract period.
-
Are there any downsides to fixed-rate tariffs?
Yes, there are potential downsides to fixed-rate tariffs. If energy prices fall, you could end up paying more than necessary. Additionally, many fixed-rate tariffs come with exit fees if you decide to switch providers before the contract ends, which could negate any savings.
-
How do I choose the best fixed-rate tariff?
To choose the best fixed-rate tariff, compare offers from different suppliers, looking at the annual cost, contract length, and any additional fees. Websites that aggregate energy deals can help you find the most competitive rates. Also, consider customer reviews and the supplier's reputation for service.
-
What is the current energy price cap in the UK?
As of now, the energy price cap is set to rise to £1,723 from October 1, 2024. This increase is prompting many consumers to consider fixed-rate tariffs to avoid higher costs in the coming months.