Should you dive in head first and take the cheapest available tariff for your gas and electricity? Okay, it’s very tempting to grab the cheapest energy deal when you see the lower prices displayed in front of you on a comparison site. But think before you leap. When energy suppliers start announcing price increases, it’s generally good practice to go for a fixed, or a capped price deal. Then you may see a couple of options. When you get a longer term fixed price, which is slightly more expensive than the shorter term deal, you will have to make a decision based on the information you have, which one to go for.
New addition to this post 18th Oct 2012
This chart will give you a better idea of which fixed price deal to go for. The 2 year fixed price deals will have no increases for 2 years. When you come to the end of the one year fixed price deals, your price will increase.
The chart is based on an average consumption of 3300 KWH for electricity, and 16500 KWH for gas. It shows an expected price you may pay over 2 years for each tariff.
SSE have recently announced a price increase, and Scottish Power have introduced a great fixed price deal. The tariff is called Online Fixed Price Energy January 2014. Based on average consumption, you will make a saving of around £225 over the period of one year. But the savings in reality will be more than this. Consider some other facts. There will probably be another price increase during the period of your fixed price term, and you will be getting cheaper energy over 2 of the cold periods. So, in reality, you are more likely to save around £400 during the term of your energy deal!
If you are not able to switch to Scottish power online deals, then you may prefer to take a look at E.ON Fixed Price April 2014 This tariff is over a longer term, so you will make similar savings over the term of the tariff!
Before you get quotes:
Your current energy supplier would have sent you a statement. This is a fairly new thing. The annual statement tells you how much gas and electricity you have consumed in the past year. Your future energy usage calculations are based on your previous consumption. When you get new quotes from another supplier, it is best to input the total KWH you normally consume over a whole year. Doing this, will give you a more accurate comparison!
If you need any help with anything, please ask. You can contact me in a number of ways. You will see the contact tab at the bottom of the page.
All figures are correct at the time of publication