Energy bills continue rise, extreme market volatility and credit crises are compounding the problem. With British gas increasing prices by 35%(!) and electricity prices approaching 10% it is unsurprising that consumers are looking for the best prices and budget stability. Responding to consumer demand, most of the leading suppliers are offering capped and fixed price tariffs. This guarantees the unit cost of your electricity- usually for a period of one or two years, though British Gas has just announced a fixed price tariff that runs until 2012.
Although the deals are pretty transparent, you should be certain exactly when the deal starts and finishes, this can prevent any unwarranted surprises, cancellation charges or penalties. It is also worth noting that some suppliers of fixed price tariffs will reduce the unit price if there is a reduction in the global energy price, other suppliers will consider a fixed price to be just that. Check this before you sign on the dotted line. The primary benefit from switching to a fixed plan is the budgetary stability it offers for the agreement period. Given the belt-tightening going on across the world, a little certainty is always desirable.
As British Gas and EDF have just posted price rises, you can be sure the competition will follow, the fixed price deals will change and may not be available indefinitely. The best advice would be to compare online, see all the deals side by side and choose the best package. Be sure to use a site that allows you to search based on your postcode so you don’t choose a deals that isn’t available in your area.
It is worth noting that it’s not just British Gas and EDF energy that have increased their prices; you can be sure all other major energy suppliers will be following in the coming weeks. So it would seem that now is a better time than any to check the deals on fixed price energy that are available in your area. One such site is www.energychoices.co.uk, not only can you search by postcode, but the site is updated constantly so the latest deals are listed, they also host a number of articles to help you avoid the smallprint and the common pitfalls.