Why Energy Suppliers Are Competing to Offer the Longest Fixed-Rate Tariff
- Author Laura Ginn
- Published January 22, 2014
- Word count 625
With summer coming to an end, a few things are to be expected: cooler temperatures, more jackets, and falling leaves. What the end of summer also means, however, is that energy prices are likely to begin rising soon. As more people begin turning up the heat, the demand on electricity and gas supplies is going to go up, and, as a result, the energy suppliers will all be raising their energy prices in the coming months. In fact, according to the Guardian newspaper, UK homeowners can expect to see their energy bills rise by £142 before the end of the year. For those who don’t take action now to switch to a cheaper energy tariff, that extra cost could have a significant impact on their savings. In response to this price increase, suppliers are now vying to outdo one another by offering increasingly attractive fixed-rate tariffs. This article looks at what fixed-rate tariffs are on offer, and what consumers should be aware of before signing up to one of these pricing schemes.
Longer fixed-rate offers
The trend in the energy market now, in light of rising energy prices, is to offer consumers fixed-rates for increasingly lengthy periods. Scottish Power has one such offer that will lock in customers to a fixed-rate of £1,350 until January 2017. Not far behind, EDF Power is offering a fixed-rate term until November 2016, also at £1,350 a year, but with the added benefit of having no exit fees. Cheaper fixed-rate deals are also on offer from other suppliers, although these tend to come with much shorter terms. M&S Energy, for example, offers a fixed-rate term until September 2014 at just £1,139 a year, although it does come with a £50 cancellation fee. Other suppliers are also expected to soon offer more competitive fixed-rate schemes, so it is worth customers’ time to continuously check with energy comparison sites to see what new fixed-rate tariffs are on offer.
What to look for in a fixed-rate tariff
The first thing to realize about a fixed-rate tariff is that they are rarely cheaper than a variable-rate tariff. Because consumers have the advantage of knowing that their energy prices will stay the same for a certain period, many suppliers tend to price their fixed-rates higher than their variable-rates. That being said, however, with energy prices expected to climb drastically this autumn, by locking into a fixed-rate tariff now, consumers could escape those price hikes. A wise approach may be to lock into a tariff with a shorter fixed-rate term as these tend to not only be cheaper than the longer term plans, but they will also allow consumers to avoid the winter price climb while still being able to shop around for a good variable-rate tariff next year. Keep in mind, however, that many fixed-rate terms tend to come with hefty cancellation fees, thus it is vital to make sure the consumer finds the perfect fixed-rate tariff before locking in to make sure he is not penalized should he choose to go with an even cheaper supplier later on. A fixed-rate tariff is ideal for those who want the peace of mind of knowing how much their energy is going to cost every month, but for those whose circumstances may fluctuate, then a variable-rate that will allow them to constantly shift from one supplier to the next will likely be a better product for their needs.
With gas and electricity prices expected to rise significantly over the coming months, those who are looking to avoid these price hikes would be wise to act now. Energy suppliers currently have a number of new and competitive fixed-rate schemes on offer that will not only help consumers dodge the brunt of winter fuel price rises, but will also offer financial peace of mind.
Laura Ginn knows that increased competition between energy providers could lead to lower prices for the consumer. Visit uswitch.com/gas-electricity/ and discover how you can reduce the cost of your gas and electricity bills.
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- How to prepare for a house clearance, a few tips from experts
- Adapting to Rising Parcel Rates in 2024 with Business Central and Order Ship Express
- Not All LED Lights Are Created Equal
- Zoviz Launches New Solutions Day by Day to Users as An AI Logo Maker
- Campervan Maintenance: All You Need to Know
- Fighting the Silent Epidemic: Safeguard Your Child's Future with Vitamin D Screening at KinderCure | Dr. Garima Mengi
- 5 Inspiring Stories of Women Who Achieved Gorgeous Lashes with Careprost Eye Drops
- Is Your Finance Strategy Ready for ERP Software?
- A Beginner's Guide to Starting a Career in Web3
- The Vital Role Of The Courier Industry: Connecting People, Businesses, And Communities
- Learning From Successes And Setbacks: The Importance Of Post-Bid Analysis In Professional Bid Writing
- Music And Identity: Exploring The Role Of Music In Shaping Culture And Identity
- Demystifying Dental Myths: Separating Fact From Fiction
- Expert and Little Known Tips for Limestone Floor Maintenance
- Explanation of how to improve the quality of low-resolution videos
- Do Compelling Marketing Pictures Unlock Sales Potential?
- Combining Science and Aesthetics: The Practical Benefits of Veneers
- These are my thoughts about the audience, topics, and purpose of my writing.
- Enhancing Child Health with Mindfulness: Insights from KinderCure’s Dr. Garima Mengi
- Blast Off into Adventure: 15 Must-Read Science Fiction Books!
- The Journey to Self-Love: Embracing Your Inner Worth
- Is Laser Eye Surgery A Permanent Fix?
- Gaslighting Tactics Exposed: Strategies for Combatting Psychological Abuse
- The Remarkable Role of Cellulose in Weight Management
- Advanced Rolfing Fort Worth Dallas & Power Yoga
- Advanced Rolfing Fort Worth Dallas Is The New #1 Paradigm Pain Manager
- 5 Powerful Benefits Of Certified Advanced Rolfing In Fort Worth: Discover A New Level Of Well Being
- 7 Life Changing Benefits of Advanced Rolfing Fort Worth Dallas You Need to Experience
- Advanced Rolfing Fort Worth Dallas | 10+ Benefits For Orthopedic Health
- Advanced Rolfing Fort Worth Dallas & Advanced Rolf Movement