Explore the Benefits of Switching to a Fixed Energy Tariff
Explore the Benefits of Switching to a Fixed Energy Tariff: The gas and electricity cap goes away on 1 April if you have a fixed energy tariff. Wholesale costs made it hard for suppliers to offer fixed tariffs until two years ago.
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As wholesale prices fluctuate, Ofgem’s Energy Price Cap sets the maximum sums that can be charged on default tariffs.
EDF Energy Essentials Apr 25 12-month fix has a 18% discount (almost £350) compared to January. There are exit fees of £50 per fuel, and it’s a little more expensive than July’s cap, but cheaper than October’s and January’s. You can get this 12-month fix from Ovo Energy for 15% less than the current price cap. Dual-fuel customers have to pay £100.
During an energy crisis, fixed-rate plans can protect households from price increases by guaranteeing a fixed price per kilowatt hour (kWh). Fixed tariffs usually cost less than default tariffs, and they’re easy to budget since your energy costs stay the same no matter what.
Should I fix my energy prices?
- Fixed price energy tariffs offer a lot of savings and security when switched at the right time.
- You need to know that there are a few caveats to fixing your energy deal – here’s what to do and what not to do.
- You’ll save money if energy prices rise soon with even slightly more expensive fixed price plans.
It comes down to an individual’s attitude to risk whether they switch to a fixed deal or stay on a price cap, energy expert Gary Caffell told MoneyWeek. Energy price caps change every three months, so it’s important for people to understand what’s expected over the next year before committing to a new fixed contract since they come with hefty exit fees.”
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