Fix your energy deal now before it's too late

The SSE price hike has sent consumers into a frenzy trying to find the best fixed-rate deals, but should you be switching and what's the risk if you don't?

The shock price hike from SSE last week has sparked rumours that other providers will follow suit and customers are now being warned to fix their energy deals before this happens.

A year ago all the ‘Big Six’ providers pushed up their prices just before winter and now SSE has started the ball rolling, the rest are expected to follow within the next few months.

Concerned customers, who are already being battered by a dire economy and rising inflation, reacted quickly to the SSE rise by heading over in their droves to EDF’s most popular deal, which has now been withdrawn because of the overwhelming demand.

EDF pulls its cheapest deal

EDF's Blue+ Price Promise tariff was one of two remaining fixed-rate offers around which didn’t have any exit fees or penalties, and fixed your rate until April 2014..

The fact a limit was set on the number of consumers who could sign up to the deal is a pretty obvious sign that the company is concerned prices will rise this year.

The cheapest fixed deal without a penalty

Now, the best deal around with no penalties comes from Scottish Power, which is fixed until January 2014.This costs an average of £1,052 a year, £252 cheaper than an average bill, and is the second cheapest on the market, after a tariff from First Utility.

The good news is this is still available (for the time being) and is £6 cheaper than the now redundant EDF offer.

Why you need to act now

Last year the big providers all pushed up their prices for gas and electricity. If you’re on a variable tariffyou either have to accept the price rises or shop around for a new deal.

A fixed energy deal means you pay the price quoted until the end of the set time limit. This is a good option if you want the peace of mind of knowing exactly how much you’ll be paying.

Can you switch?

On the whole switching energy providers is not something we’re too keen on as a nation - most people tend to stick with the same tariff for several years. However, in nearly all cases switching can and will save you money. The average saving is a whopping £310 a year according to Energyhelpline.com.

Although switching to a fixed-rate deal seems to be the sensible option, and the worry of price hikes is encouraging thousands of customers to do so, you need to make sure you won’t be hit with penalty fees as these may wipe out the benefit of switching.

The cheapest fixed rate deals on the market

When the rest of the providers begin to talk about price hikes, there's little you can do as a consumer to avoid paying up more. But the best defence you do have is shopping around and making sure you're on the best deal for your individual needs.

The cheapest fixed rate deal right now comes from First Utility on its iSave Fixed v3 tariff which is fixed until December 2013 and this is on average £1,040 a year - or £270 cheaper than the average price most households will pay.

A full run down of the energy market can be found on our comparison tables, but here are five of the cheapest fixed-rate deals. 

* Source: Energyhelpline.com. Based on average dual fuel tariff costing £1,310 (Source: OFGEM 1 Aug 2012). 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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