You are here: Home - Household Bills - News -

Fixed price energy plans rise in popularity as Brits fear further price hikes

0
Written by:
10/06/2013
Consumers are hedging against future energy price hikes by taking advantage of competitive fixed price energy deals, says a new report.
Fixed price energy plans rise in popularity as Brits fear further price hikes

According to uSwitch.com, warnings over future price hikes and the recent battle among Britain’s big six energy suppliers to offer consumers the best fixed price deal, are reigniting consumers’ interest in fixing their energy prices for the future.

The number of households making use of these price fix guarantees is on the up, with three in ten switchers now opting for one, compared to under one in ten last month.

Tom Lyon, energy expert at uSwitch.com, said: “Historically, fixed price plans used to carry a premium. However, we’re now seeing tariffs that are fixed, but also qualify as a ‘best buy’.

“This is great for consumers as it means they get to enjoy a competitive price today, along with price protection for the future. With so much uncertainty about future prices and with bills already having hit an all-time high, this is doubly important and gives consumers even more reassurance that they are making the right move.

“Some also don’t carry any early exit fees, which removes any risk from fixing as, if prices do fall in the future, you can simply ditch your tariff and move to a better deal without incurring any penalties. This puts consumers firmly in the driving seat.

“It’s also important to stress that the ‘fixed’ element of a fixed price tariff is in the amount charged per unit of energy used. So if you are on a fixed price plan, but make your home more energy efficient, you will still save money.”

Similar to a fixed-rate mortgage, fixed price energy plans allow consumers to safeguard against further energy price rises for a set period of time. It means that their price per unit of energy is fixed during this period – for anything up to just over 3 years.

uSwitch.com said that while traditionally fixed price plans have carried a premium on the price, this has now changed.

 

How much it costs the average household depending on their tariff and billing method: 

Type of plan      Tariff name    Cost     Fixed until        
 Average standard (cash and cheque) n/a  £1,353  n/a 
Average standard (direct debit)  n/a  £1,265  n/a 
Cheapest variable  SSE Discount ENergy Bonus October 2014 (with paperless billing)  £1,146  n/a 
Cheapest fixed  Flow Energy’s Thames Fixed Online  £1,135  31/08/2014 
Cheapest fixed no cancellation fees  EDF Energy’s Blue+ Price Promise February 2015  £1,192  28/02/2015 
Longest-term fix, plus no cancellation fees  npower’s Price Fix Sepetmebr 2016  £1,318  30/09/2016
 source:uswitch.com

 

 

 

 

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Govt must tackle nuisance calls, says Which?

Households signed up to the Telephone Preference Service (TPS) are still reporting high numbers of nuisance calls.

Close