The cheapest fixed energy tariff has exceeded £1,000 for the first time ever. Find out how to fight back against these record high rates...
An unfortunate record has been broken.
In the midst of relentless hikes to standard energy rates, fixed tariffs offered some respite for stretched households. But now even these tariffs are going up rapidly in price. The cheapest annual fixed gas and electricity tariff has exceeded £1,000 for the first time ever.
Fixed tariffs
The threshold was breached earlier this week when Scottish Power withdrew its £990 online tariff. The changed followed similar moves by other companies in the previous few weeks.
Fixed tariffs charge you one single charge for a set period. Here’s the full list of the best fixed tariff deals around at the moment:
|
Supplier |
Tariff |
Cost* |
Typical Saving** |
Length of Cap or Fix |
Cancellation charges |
|
New Energy Fixed (15% green energy) |
£1,050 |
£250 |
1 year |
£30 per fuel if you leave before fix end date |
|
|
£1,051 |
£249 |
To 31/12/12 |
£50 cancellation fee if you leave before end |
||
|
£1,108 (after £30 cashback) |
£192 |
To 31/03/13 |
£30.64 for electricity and £20.42 for gas |
||
|
£1,087 |
£213 |
To 03/02/13 |
£20 / fuel if you cancel before end date |
||
|
£1,150 |
£150 |
To 31/12/12 |
£30 per fuel if you leave before fix end date |
||
|
£1,165 |
£135 |
To 31/03/13 |
£25 per fuel |
||
|
£1,182 |
£118 |
To 01/01/13 |
£35/fuel before Feb 2012. £25/fuel thereafter |
||
|
£1,190 |
£110 |
To 01/04/13 |
£80 if you cancel before end date |
Source: energyhelpline.com – all tariffs are available from the lovemoney.com energy comparison centre.
As you can see the first two tariffs in the table – the Ovo and EDF deals – offer the best prices for short term fixes. Scottish Power’s April 2013 rate is a good option if you fancy fixing your tariff for a little longer.
Lengthy fixes
There are also a few longer-term fixed tariffs around – offering a set rate for between three and four years. Here are the best deals in this category:
|
Supplier |
Tariff |
Cost* |
Typical Saving** |
Length of Cap or Fix |
Cancellation charges |
|
£1,214 |
£86 |
To 01/01/15 |
£30.64 for electricity and £20.42 for gas before capped end date |
||
|
£1,307 |
-£7 |
3 years |
£80 in 1st 18 months, £60 afterwards |
||
|
£1,200 |
£100 |
To 30/06/14 |
£35 per fuel before 30 June 2012 or £15 per fuel between 1 July 2012 and 30 June 2013. No fee will be charged between the 1 July 2013 and 30 June 2014. |
Source: energyhelpline.com – all tariffs are available from the lovemoney.com energy comparison centre.
Obviously, you’ll have to pay more for the privilege of fixing your rate for longer. In fact, the SSE Price Fix 7 tariff is more expensive than the average standard rate bill. However if energy rates do keep rising over the next three years, you could benefit from opting for one of these tariffs and guaranteeing your rate now.
Online tariffs
Another way to save money on your energy bill is to opt for an online tariff. These have increased in price of late as general rates have been upped. However they are still considerably cheaper than standard tariffs.
Here are the best online tariffs around at the moment:
|
Supplier |
Tariff |
Cost* |
Typical saving** |
Length of deal |
|
£1,024 |
£276 |
To 31/12/2012 |
||
|
£1,032 |
£268 |
One year |
||
|
£1,044 |
£256 |
To 31/12/2012 |
||
|
£1,050 |
£250 |
To 03/02/2013 |
||
|
£1,097 |
£203 |
One year |
||
|
£1,099 |
£201 |
To 31/12/2012 |
Source: energyhelpline.com – all tariffs are available from the lovemoney.com energy comparison centre.
EDF’s market-leading tariff offers a guaranteed discount of 2.5% off the supplier’s standard rate until December 2012. This will give you a cool annual saving of £256 (when compared to the average UK bill). However – unlike the fixed options – if EDF ups its rates again, you’ll see your costs increase as well.
Keep switching
Regardless of whether you go for a fixed tariff or an online tariff, you’ll need to keep switching to guarantee that you're getting the best rate.
Energy companies use these discounted tariffs to lure in new customers who they then bump onto pricey standard tariffs when the fixed term comes to an end. If you don’t want to be caught out by this sly trick, you’ll need to keep shifting suppliers every time your cheap rate expires.
Finally, for some more information on saying no to utility price hikes read The secret trick you can use against your energy provider.
* All calculations are for an average usage duel fuel household paying by monthly direct debit. Average usage as defined by OFGEM is 16,500 kWh pa of gas and 3,000 kWh pa of electricity.
** Against a typical bill of £1,300 after this round of price rises. Figures based on average usage as set by Ofgem for a dual fuel bill paid by monthly direct debit.
More: Compare energy tariffs with lovemoney.com | The cheapest energy in Europe | Yet another energy provider hikes rates