Cost of fixed price energy plans start to creep up
The new Blue + Price Freeeeze November 2016 tariff wins EDF Energy the title of the longest fix on the market, swiping the crown from npower with its Price Fix September 2016, according to comparison site uSwitch.com.
The new plan will cost consumers £1,350 a year on average which is £32 a year more expensive than npower’s Price Fix September 2016, previously the longest fix on the market.
The EDF plan is £215 more expensive than the cheapest plan on the market, which is also fixed price, however it offers over two years extra protection from potential price hikes with no cancellation fees.
uSwitch.com said the plan comes in at just £3 a year cheaper than the average standard plan for customers paying by cash or cheque, one of the most expensive types of tariff on the market.
However, at the time of its launch in May, npower’s Price Fix September 2016 offered the same length of protection (41 months) and no cancellation fees for £1,318 a year, £32 a year less. uSwitch.com said this may be a sign that premium is creeping back onto fixed priced plans.
Tom Lyon, energy expert at uSwitch.com, said: “Fixed price plans have increasingly dominated the best buy tables offering competitive prices, good guarantees and often no exit penalties. But with the premium to fix starting to creep back in, alarm bells are ringing and the decision to fix is starting to become more of a gamble for the cost-conscious consumer.
“It is now more important than ever that consumers heed this warning and ensure that they are looking into all options and moving to a tariff that best suits their needs. If they are willing to pay a premium for long-term price security then EDF Energy’s new offering could be the answer to their prayers. However, there are also a number of short and mid-term fixed price plans which offer the best of both worlds – security without the initial extra cost.”