Best Fixed Rate Energy Deals

Inflation has caused a lot of uncertainly lately throughout the UK therefore it might be difficult to consider on whether you should switch your energy provider as prices could spike at any moment. This might be the perfect time to consider a fixed rate energy deal. Check out much you could potentially save in the long run through fixed-price energy deals and find the best fixed rate energy deals for you.

What are fixed-price energy deals or tariffs?

Fixed price energy tariffs charge a fixed price for gas and electricity. During the duration of the deal agreed between the customer and energy supplier the supplier promises a fixed price. This is an effective way to lock down your energy bills protecting you from any potential price hikes. These fixed rate deals typically last between a time period of 12 to 24 months or 1 to 2 years.

Side Note: “Fixed price energy tariffs don’t guarantee that you will be paying the exact same price monthly as this energy deal is fixed by the price per unit not by usage you may have to pay more in accordance to this”

Pros of a fixed price energy deal or tariff

  • Consistent Pricing: Unlike standard variable rate tariffs fixed price tariffs aren’t affected by market changes. Therefore customers are protected from rising prices.
  • Cheaper: Fixed price tariffs can be much cheaper in comparison to standard variable rate tariffs this is because when customers are committing to a long-term contract suppliers may be able to or consider lower their rates for their customers
  • Extensive choice of deals available: Competition between different companies and providers may drive them to offer choices of an extensive range of deals in order to keep their customers in the long run. Having more to choose from allows you to decide which tariff best suits you.
  • Easier Budgeting: Take back control of your bills. Since rates are fixed per unit it’s easier to figure out how much you will be spending each month

Cons of a fixed price energy deal or tariff

  • Decrease in wholesale prices: A considerable drop in wholesale prices can lead to you missing out on better deals. If you signed up to a contract which runs at least 1-2 years then there likelihood for the wholesale prices to plummet during or within this period of time.
  • Exit Fees: You might be charged an exit fee if you decide to make a switch during your contract. Therefore, it is important that you choose energy providers who offer fixed deal energy deals without exit fees. There are a number of energy providers who offer this such as Octopus Energy.
  • Needing to switch again after your deal ends: Keep a watch out for the end date of your contract as your supplier will automatically switch your rate to an expensive standard variable tariff which could you cost a lot more in the long run.
  • Too many choices: With too many options it takes a long time to understand and decide on the best deal

Finding the best fixed rate energy deals

Find yourself the best fixed rate energy deals following these simple steps:

  • Step 1: Firstly decide whether a fixed rate energy deal is the right choice for you
  • Step 2: Next weigh out the pros and cons of a fixed rate energy deal
  • Step 3: Use price comparison sites
  • Step 4: Negotiate a deal with your chosen energy supplier