You are here: Home - Household Bills - News -

Rising energy bills: should you go for a fixed tariff?

Written by:
Heating bills may not be top priority as we bask in an Indian summer but consumers are being urged to review their energy tariffs now before prices start to soar.

According to Mark Todd of comparison service, now is the time of year providers historically start increasing their prices as they stock up to meet demand over the winter months.

And he believes this year will be no exception: “I fear 5%-10% cost increases are on the way.”

One of the big decisions for households is whether to opt for a fixed term or variable plan. A fixed price tariff means that your unit rates stay at one price for the duration of the plan, which can range from one to three years.

The main benefit of fixing your tariff is that it will protect you from any future price rises. Of course, you will miss out if energy prices drop.

However, Todd says all evidence points towards energy prices continuing on an upward spiral.

“There has been a three year bounce and there are no indications costs are coming down. The big hope is fracking but that seems to be making slow progress in the UK,” he said.

Gas imports are also at record highs, according to government figures released last week, which Todd says adds to pricing pressure: “It costs more when you are importing it.”

In light of expected price hikes, a number of providers have launched fixed-tariff deals lately in an attempt to attract customers.

This week ScottishPower launched a new product that will fix prices until 31st December 2016. The Help Beat Cancer Fixed Price Energy January 2017 deal is currently the longest fixed price product in the market, and has an annual average bill of £1,350. The provider will donate £10 to Cancer Research UK on taking out the deal, with a further £10 a year donation until it ends.

However, consumers need to decide what matters most to them: price or length. The cheapest on the market is M&S Energy Fix & Save, which will cost on average £1,139 with a £50 cancellation fee but is only fixed until September 2014.


  Supplier Plan Name Date prices are fixed to Average Bill Size (£) Additional Info
Cheapest on the market M&S Energy Fix & Save 30.09.2014 £1,139 £50 Cancellation fee
Second cheapest fix npower Online Price Fix October 2014 31.10.2014 £1,181 No cancellation fee
Cheapest variable First:Utility iSave v16 N/A £1,155 N/A
Second cheapest variable npower Energy Online Oct 2014 N/A £1,156 N/A
Second longest fix EDF Energy Blue+Price Freeeeze November 2016 30.11.2016 £1,350 No cancellation fee
Longest fix ScottishPower Help Beat Cancer Fixed Price Energy Online January 2017 31.12.2016 £1,350 £25 Per Fuel Cancellation fee if moving to another supplier


Related Posts

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:
Just half of retirement income to come from pensions – study

UK adults expect to generate just half of their retirement income from pensions, a study has found.