The energy market is hotting up, with another competitive new long-term fixed tariff.
First Utility has launched a new tariff which fixes your energy costs until January 2016.
It’s the cheapest tariff for this time frame and costs an average of £1,274 per year.
The deal is likely to attract customers looking to fix their payments and avoid winter price hikes, but there are a lot of competitive fixed rate deals to choose from.
Cheapest long-term energy tariffs
Energy customers who choose the First Utility iSave Fixed v10 tariff will miss two winters of potential price rises.
Increases of between 5% and 10% among the big six providers have been predicted, and could happen within the next couple of months.
Typically fixed rate tariffs cost more than variable tariffs, but given the impending rises, switching to a tariff where payments are fixed will be an attractive option to many.
Competition in the energy market
Providers are well aware that customers are looking to fix and have been forcefully pushing out deals which lock you in for the long term.
For those looking to fix their payments for the longest time possible, Scottish Power has a three-year fixed rate tariff which runs until January 2017, while EDF's Energy Blue Price Freeeeze eradicates price rises until November 2016.
Although the overall cost of both of these is more expensive at £1,350, they are fixed for a longer period of time than the First Utility tariff so offer a little more certainty.
EDF Energy also upped its game last week by extending its fixed term Blue Plus Price Promise Plan to 16 months at an average cost of £1,209 a year.
The cheapest tariffs
If we’re looking at cost alone, First Utility doesn’t provide the cheapest deal. M&S Energy is in the top spot here with its Fix & Save tariff which costs an average of £1,139 per year. But it only runs until 30th September 2014.
The table below shows the cheapest five tariffs on the market right now.
|
Provider |
Tariff |
Fixed until |
Average cost* |
Average saving when switching |
|
Fix & Save |
30 September 2014 |
£1,139 |
£281 |
|
|
Online Price Fix October 2014 |
31 October 2014 |
£1,181 |
£239 |
|
|
Online Fixed Price Energy November 2014 |
31 October 2014 |
£1,195 |
£219 |
|
|
Blue Plus Price Promise December 2014 |
31 December 2014 |
£1,209 |
£211 |
|
|
iSave Fixed v8 September 2014 |
30 September 2014 |
£1,225 |
£195 |
*based on typical gas and electricity bill for someone who has never switched costing £1,420 (Source: OFGEM 2013). Source: Energyhelpline, 06/09/13