Is this the end for fixed rate plans?
Following E.ON's decision to increase the cost of three of its popular fixed plans, what next for the fixed rate?
E.ON have announced price rises for their fixed-rate plans. The plans for a medium user now cost £1230.33 (Age UK), £1240.83 (1 year fixed) and £1264.11 (2 year fixed) per year, adding £77 a year on average
The announcement means the cheapest fixed plan is now £1,139 from Ovo Energy, nearly £100 more than First Utility’s iSave Fixed V3 which was withdrawn just 2 months ago.
Fixed plans offer peace of mind that prices won’t go up, but typically cost more than variable plans, and with the cost of fixed plans going up this gap is growing.
There is now almost £90 difference between the cheapest plan on the market and the cheapest fixed plan.
Another one bites the dust
The price increases are indicative of a worrying trend for households looking for the security of fixed rate plans, with suppliers pulling their most popular plans or pushing prices up since the first price rise announcement from SSE:
22/08/12 SSE Price rise – The SSE group announced a 9% price rise on average for both gas and electricity to take effect from the 15th of October
30/08/12 EDF Energy pulls cheapest tariff – EDF pulled the cheapest plan on the market, the Blue + Price Promise, in the face of growing demand
10/09/12 First Utility pulls cheapest tariff – First Utility reacts to growing demand and pulls the then cheapest plan on the market, the iSave Fixed V3
11/09/12 ScottishPower pulls cheapest tariff – ScottishPower is the next to feel the heat, pulling Online Fixed Price Energy January 2014
07/11/12 E.ON increases the costs of its fixed plans
Fixed plans currently available
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|
|New Energy Fixed||12 months from going live||£1,139||Cancellation fee of £60 if you leave before 12 months|
|Green Energy Fixed||12 months from going live||£1,195||Cancellation fee of £60 will apply if you leave before 12 months|
|M&S Energy Fixed Price 2||28.02.2014||£1,200||Cancellation fee of £50 if cancelled before end date|
|Online Fixed Price Energy May 2014||31.04.2014||£1,225||No cancellation fee|
|Age UK Energy Fixed 1 Year||1 year from sign-up||£1,230||No cancellation fee|
|E.ON Energy Fixed 1 Year||1 year from sign-up||£1,241||£5 per fuel cancellation|
|Blue + Fixed Price March 2015||31.03.2015||£1,251||No cancellation fee|
|Price Protector March 2014||31.03.2014||£1,258||£30 cancellation fee per fuel if cancelled before end date.|
|E.ON Energy Fixed 2 Year**||2 years from sign-up||£1,264||£10 Per Fuel Cancellation fee|
|Price Pledge November 2013||30.11.2013||£1,270||£20 cancellation fee per fuel if cancelled before end date.|
|Fixed Price Energy April 2015||31.03.2015||£1,271||Cancellation charges of £30.64 for electricity and £20.42 for gas.|
|Fix & Fall November 2013||31.11.2013||£1,273||£50 per fuel cancellation fee per fuel|
|Fix & Fall March 2014||31.03.2014||£1,309||£35 per fuel cancellation fee per fuel|