What does a fixed price energy tariff do?
With a fixed price energy plan, your unit price for electricity and gas does not change until and unless your fixed price energy plan is over. Unlike variable energy tariff plans. In those kinds of plans, your energy rate can change and vary during the term of your plan.
With fixed price energy tariffs, you get a kind of security knowing that you will have to pay the same rate for the entire time duration of the plan. Usually, these types of tariffs are also one of the cheapest available options on the market.
When your energy is fixed it means that your rate per kilowatt hour is locked and will not change during the time of the plan. The plan duration is usually one or more years. So, within that time you will pay the same rate for your energy despite the energy rate fluctuations in the market.
That, however, does not mean that you will pay the same price every month because the amount you pay depends on your usage. So, even though the rate remains the same if you are using more, you will have to pay more and vice versa.
For the long term, choosing fixed energy could be a hit or miss. While it gives you security if the market energy rates are rising, you can also suffer a loss if there are cheaper deals available.
Is it important to know when your fixed price energy tariff ends?
Yes, it’s important to know when your fixed price energy tariff is ending because then you can find out what plan the supplier is giving you next. Either you can go ahead and get your prices fixed again for another term if the option is available or you can move to a standard plan. Once, you have gathered information about what energy plan you will be getting next, you can then do your research to make the most informed decision.
You can find out about all the energy plans that are available in your area and compare them with the plan you will be moving to. If there are cheaper options available, then it’s time to switch the energy supplier and save on costs. Our experts at Bill-switchers.com can easily help you through that process and help you find the best deals for yourself.
Is the fixed price energy tariff the right choice for you?
Fixed price energy tariffs can be an excellent choice depending on the time you make the switch. The best time for switching is when you can predict the rise in energy prices. If that happens, since your energy price is fixed you will have that security that will lead to a lot of savings on your part.
However, the downfall of course is the scenario where energy prices actually fall in the market. In that case, you will be paying more than you otherwise would if your prices were not fixed. So, then you would lose out.
However, that case is very rare. That’s because prices usually tend to stay the same or increase. So, mostly it is considered a safe bet.
Sometimes a fixed price tariff can cost a bit more than a variable tariff. However, that increase in cost cancels itself out if energy suppliers increase their rate. That’s because you get to be safe from any and all price hikes. This is more often the case since price drops don’t happen that often in comparison.
How can you make sure that your energy prices don’t go up?
Of course, whether you are paying a fixed rate for energy or a variable one, the one factor that contributes most to your energy costs is your usage. If you can limit your usage, you’ll be in charge of your energy costs and can lower your bills. There are a lot of ways that can help you conserve your energy and reduce your costs.
Simple changes can also make a lot of difference. Taking shorter showers, fixing broken showerheads and leaky faucets can help you reduce water heating bills. Making sure that the seals on your appliances, doors, and windows are working properly can also help save energy and enable you to pay less. Broken seals can cause a lot of energy to drain and warmth or cooling to escape, increasing your energy bills.
Devices like smart thermostats can also help you control your heating and get you the best home temperature that conserves energy and suits your need without much hassle. Furthermore, asking for discounts can also help sometimes.
All these changes around the house can help you control your energy usage. When the energy usage is not much, you won’t have to pay a large sum for bills regardless of what kind of plan you have.
Of course, another great way of saving on your energy costs and ensuring that your prices are manageable is finding the right energy supplier and the cheap energy deals in UK. For that, like mentioned above you would have to carry out a thorough comparison between your current deal and other deals available on the market.
By only filling a ten-second form, you can get the help of your experienced professionals at Bill-switchers.com, who carefully go through our large database of best dual fuel deals of energy to find you the best option. We also ask you questions that help us find a deal that is specifically tailored to your needs and cut down your bill costs.
You can also book a call with us and ask us questions that will guide you through the process. Once you decide on the deal we contact both your old and new supplier to make the whole process effortless for you.
It’s not easy at all to switch energy suppliers and pay less than you are right now!
So, if you want to save more this winter, then get ready to make a switch to a new energy supplier that will fulfill your energy deals while helping you save money!