Is it a Good Idea to Fix your Energy Prices?
Sep 12, 2013
As winter draws near it feels as though everyone is jumping on the energy bandwagon and talking about switching energy suppliers, fixing energy prices, cutting down energy use and the cost of going green. Mind you with a third of the UK saying that they are concerned with the prospect of paying their heating bill this winter, there’s little wonder that it’s such a hot topic (no pun intended).
I’m pleased to see the recent announcement by the Department of Energy and Climate Change that funds are being made available to launch the ‘Big Energy Saving Network’; an initiative that will see around 500 volunteers being trained to provide advice and guidance to the elderly and most vulnerable on how to keep warm whilst keeping energy bills down.
This, on top of the planned reforms to cut the number of energy tariffs available, make them clearer and more straightforward and make energy suppliers move people from poor value tariffs feels like things are finally moving in the right direction; in favour of the consumer for a change.
Over the last few days alone there have been numerous articles promoting improved tariffs that allow you to fix your energy prices for an agreed period from various providers, all competing to offer the best deal which then poses the question, is it a good idea to fix your energy prices?
The answer really depends on your personal situation. Fixed energy tariffs are unlikely to be the cheapest option today, in fact you can pay up to 20% more but they do protect you against any price increases which can be appealing given the time of year, state of the economy and the talk of imminent rises, so over a longer period of time you could save money. If you are thinking about this option, take a look at the energy deals that don’t have a penalty fee for cancelling. This way you will still have the freedom to switch at a later date should you decide to do so.
If you want the cheapest option, are happy to compare online energy prices and shop around on a regular basis, then it may be favourable to steer clear of the fixed tariff and choose the cheapest option for your area. Don’t assume that one company is best as prices do vary by postcode.
If however you prefer the guarantee of a fixed tariff that could perhaps help with budgeting, then the fixed option may provide peace of mind.
Whichever you prefer, the important thing is to make sure you have looked into your options, compare energy prices and made the move to your preferred energy supplier. If you have never switched there is a good chance you could save up to £300 which is not to be sniffed at.
Now that would buy you a few jumpers for the winter months wouldn’t it!
By Ashley Shepherd