The longest fixed rate energy tariff EVER!
With some providers upping their prices and a seemingly never-ending winter, it can be a smart move to fix your energy bills. And the longest-ever fixed energy tariff has just been launched!
Two energy suppliers have raised their prices in the last few weeks, with first:utility raising its rates on many versions of its popular iSave tariff and Cooperative Energy increasing the costs of its sole tariff, Pioneer, by 8%.
On top of this bad news British Gas owner Centrica revealed the impact of the bitterly cold winter we experienced when they announced consumption for the first four months of this year was up by 18% on gas and 3% on electricity when compared to the same period last year. In simple terms this means, following price rises that came into effect earlier this year, we have been paying considerably more for our energy while using more to power our homes.
Time to fix?
So it is unquestionably a good time to choose a fixed energy deal. Although fixed tariffs can often seem more expensive than the discounted variable offerings, if prices do go up as expected then your savings over the course of the fixed period will grow and grow. Even if you are already on a fixed deal you may want to check when it expires, as many of last years most popular fixed deals are nearing or have expired.
At the moment there are a number of popular fixed deals available, including EDF's Blue+ Price Promise February 2015. This tariff sees your bills set in stone until the end of February 2015, carries no cancelation penalties and offers an average bill of £1,192 at typical consumption, a £228 saving over an average bill of £1,420 (Source: Ofgem).
Those looking for a longer fix may be interested in npower's recently launched Price Fix September 2016, the longest fixed tariff available on the market currently. In fact it's the longest fixed tariff ever!
This tariff fixes your rates for three years, has no cancellation penalties, and has an average cost of £1,318 per year. While currently this is only a saving of £102 over an average bill, the real benefit of such a long fix will be felt in years two and three, especially as bills are expected to keep climbing.
Other tariffs that may interest those who are fixing include npower's Online Price Fix August 2014, currently the cheapest fixed tariff, ScottishPower's long Fixed Price Energy April 2015 Online, and Ovo's New Energy Fixed.
Below is a table showing the current cheapest fixed tariffs on the market.
Supplier | Tariff | Average Cost | Average Saving* | Notes |
npower | £1,184 | £236 | Prices fixed until 31st August 2014. Cancellation fees apply | |
EDF | £1,192 | £228 | Prices fixed until 28th February 2015 | |
first:utility | £1,225 | £195 | Prices fixed until 30th September 2014. Cancellation fees apply | |
ScottishPower | £1,230 | £170 | Prices fixed until July 31st 2014 | |
e.on | £1,231 | £189 | Prices fixed for 12 months |
*based on a typical dual fuel tariff costing £1,420 (Source: Ofgem). All costs are for a yearly average usage dual fuel household paying by monthly direct debit. Average usage defined by Ofgem as 16,500 kWh p.a. of gas and 3,300 kWh p.a. of electricity.
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