With gas and electricity price rises a hot topic, many people are wondering: 'Should I switch to a fixed price energy tariff?'
With a fixed price energy tariff, your unit rates stay at one price for the duration of the plan, which can be anywhere between one year and four years.
However, as your usage changes fixed price does not mean that you pay the same price however much energy you use.
You'll be protected if prices go up, but fixed price energy can also be more expensive than the cheapest online energy tariffs, and often come with high cancellation fees if you want to switch your tariff before your contract is up.
The pros and cons of fixed price energy plans…
Switching to a fixed tariff can be a gamble - if energy prices rise you stand to make some big savings, but if they don't, you could end up paying over the odds.
Read on to find out more about fixed price energy and whether or not it's the right choice for you.
Pros
- Long term savings. At a time when energy prices look set to go up, your unit rate stays the same for the duration of your fixed price plan (usually between one and four years) so you’ll save money in the long-run.
- Guaranteed rates. Paying the same amount for the duration of your fixed price tariff means you can plan ahead for the extra expense.
Cons
- Cost. Fixed prices can be more expensive than the cheapest online tariffs.
- Price decreases. If prices happened to go down you would still be locked into your plan.
- Exit and cancellations fees. Fixed price plans often have high cancellation fees if you decide you want to switch your tariff before your contract is due to end.
Is a fixed price energy tariff right for me?
Answer these three questions to work out if a fixed price energy plan is it right for you…
What would happen if your gas and electricity bills went up?
I would struggle to afford necessities, such as food, clothing and transport.
I would have to cut back on luxuries, such as eating out and holidays.
It wouldn't have a drastic effect on me.Which statement best describes your attitude to your finances?
I prefer to be organised when it comes to my finances. I would rather have time to reshuffle my outgoings and plan for increased payments, as opposed to having a price rise sprung on me. 'Planning ahead' sounds good in theory, but I tend to bury my head in the sand and put financial decisions off, so I don't always get round to making changes and looking for better deals. I'm quite laid back about my finances; I take them a month at a time, and don't always keep a record of exactly what's going out when.Can you afford to risk sudden changes to your bills?
No. I have a family/partner to support. I could probably cope, I'm independent and I only really have to worry about myself. I could manage; an increase wouldn't affect me that much.
Mostly
?
Fixing might mean…
Short-term - some tight budgeting and cut backs.
Long-term - stability and protection from future price rises. (And more money for shopping!)
Compare fixed plans »
Mostly
?
Fixing might mean…
Short-term - a bit more organisation when it comes to finances and some budgeting.
Long-term - savings, stability and better odds on that holiday next year.
Compare fixed plans »
Mostly
?
Fixing might mean…
Short-term - some time spent considering and switching to a fixed plan.
Long-term - no more hassle with price rises or switching suppliers.
Compare all plans »Fixed plans currently available
So you know what fixed price energy tariffs are, but what's currently out there? Below is a table of fixed plans currently available on the uSwitch site, with the date the plan is fixed to and any cancellation fees.
Average bill size will give you an indication of the average cost of the plans currently available, but this will vary according to how much energy you use and the size of your property.
These figures are based on a medium user profile consuming 3,300 kWh of electricity and 16,500 kWh of gas a year paying by monthly direct debit (averaged across all regions).
| Supplier | Plan name | Date prices are fixed to | Average Bill Size (£) | Additional Info |
|---|---|---|---|---|
| iSave Fixed V6 | 31 March 2014 | £1,170 | Cancellation fee of £60 |
|
| iSave Fixed V7 | 30 September 2014 | £1,194 | Cancellation fee of £30 per fuel |
| New Energy Fixed | 12 months from going live | £1,172 | Cancellation fee of £60 if you leave before 12 months |
| Blue + Price Promise June 2014 | 30 June 2014 | £1,182 | No cancellation fee |
| Online Fixed Price Energy Sept 2014 | 31 August 2014 | £1,195 | No cancellation fee |
| Age UK Energy Fixed 1 Year | 1 year from sign-up | £1,220 | No cancellation fee |
|
| E.ON Energy Fixed 1 Year | 1 year from sign-up | £1,231 | £5 per fuel cancellation |
|
| Green Energy Fixed | 12 months from going live | £1,231 | Cancellation fee of £60 if you leave before 12 months |
|
| Blue + Fixed Price March 2015 | 31 March 2015 | £1,251 | £35 per fuel if before 31/03/2013; £15 per fuel if between 01/04/2013 and 31/03/2014; none if after 01/04/2014 |
| Price Protector March 2014 | 31 March 2014 | £1,258 | £30 cancellation fee per fuel if cancelled before end date. |
|
| Online Price Fix May 2014 | 31 May 2014 | £1,226 | £30 cancellation fee per fuel if cancelled before end date. |
|
| Price Fix December 2015 | 31 December 2015 | £1,305 | £50 per fuel if cancelled before end date |
|
| Unifi Fixed Energy May 2014 (Online) | 30 April 2014 | £1,261 | £25 per fuel cancellation fee |
|
| Online Fixed Price Energy August 2014 | 31 July 2014 | £1,230 | No cancellation fee |
|
| Fixed Price Energy April 2015 | 31 March 2015 | £1,271 | £25 per fuel |
| Fix & Fall November 2013 | 30 November 2013 | £1,273 | £50 cancellation fee per fuel |
|
| E.ON Energy Fixed 2 Year** | 2 years from sign-up | £1,275 | £10 per fuel cancellation fee |
|
| Fix & Fall March 2014 | 31 March 2014 | £1,309 | £35 cancellation fee per fuel |
|
| Price Promise July 2014 | 31 July 2014 | £1,353 | £35 per fuel cancellation fee |
|
| Price Promise April 2015 | 30 April 2015 | £1,391 | £50 per fuel cancellation fee |
| Price Promise July 2014 | 31 July 2014 | £1,353 | £35 per fuel cancellation fee |
What should I do when my fixed price plan ends?
When your fixed plan is about to end, the first thing to do is find out which plan your supplier will be moving you to. This may be your supplier's 'Standard' plan, although some suppliers may offer you the chance to fix your prices again.
Standard energy plans are among the most expensive in the market and there are usually cheaper plans available. If you're offered the chance to fix your prices again, you may wish to take it, if you are willing to pay above-average prices in return for security against potential price rises in the future.
Once you know what energy plan you're being moved to compare all available energy plans online and find out how your new plan compares to other deals.
If you find that you could be saving money with another energy supplier, you may want to consider switching your gas and electricity supplier.
Fixed rate plans ending in the next few months
Some popular fixed rate plans are ending in the next few months (see below). To find the cheapest tariff on the market just pop your postcode into the green box, or hit the 'compare' button in the table.
If you're on a fixed price plan it's important to know when it ends so you can be prepared to avoid a sudden increase to your gas and electricity bills.
But be careful - if you switch before your contract is up you could incur a penalty fee. Check your terms and conditions or speak to your supplier to find out when you can switch without the risk of a penalty charge.