Wholesale energy prices are on the up, meaning energy companies are likely to consider increasing customer bills - a worrying prospect for many households as we edge towards the colder months.
With this in mind, fixed price energy deals are becoming more attractive, as people look to grab a decent deal before the winter sets in.
This week, Scottish Power has launched its Platinum Fixed Energy tariff that guarantees prices until January 2014 and also comes with a package of benefits.
We take a look...
What's the deal?
Scottish Power's Platinum Fixed Energy deal is a fixed price tariff guaranteed until January 31, 2014. That means that, if prices rise again before this date, you have peace of mind that your bills will stay the same.
The average annual bill for this fixed tariff is £1,226.76, which is cheaper than Scottish Power's average standard tariff bill, at £1,289.54. However, it is a little more expensive than the overall average standard tariff bill of £1,169.49.
Having said that, with energy prices on the up it won't be long until providers start to hike their standard tariffs.
This deal also comes with HomeComfort Standard Boiler Care, free of charge, when it's normally worth £150 a year. That means you get an annual boiler service and safety check, as well as unlimited callouts.
Scottish Power will also throw in a wireless electricity monitor, which shows in real-time how much electricity you are using. That can help you cut down on the energy you use, reducing both your bills and carbon footprint.
On top of this you will also receive a 25% discount off cavity wall insulation, up to a maximum of £199.
Bear in mind, though, that your bills don't just depend on how much energy you use, the region you live in also affects the price.
That can make it hard to work out the cheapest deal for you, so it's a good idea to compare gas and electricity on our site to see if Scottish Power is the right deal for you.
Any catches?
With Platinum Fixed Energy, you are tied in until January 2014 - just over three years. That means that if energy prices were to fall, you'd miss out on the savings.
If you decided to move away from this deal and switch to another provider before the end of the term, you'd be charged a termination fee of £30 for electricity and £20 for gas. Obviously you'd also lose your boiler care cover and the other benefits attached to this product.
Unfortunately, this deal is not available to Londoners or households in the north of Scotland.
Verdict
The Platinum Fixed Energy tariff is worth considering if you are worried about the rising cost of energy, and the free boiler cover will save many households a fair amount of cash.
Fixing your price at a time when energy prices are on the up may turn out to be a savvy move, however, keep in mind that you will be tied in until 2014.
Top Tip
Two top tips for you today. One is that choosing to manage your account online and opting for paperless billing can also mean you qualify for discounts and keep your energy bills to a minimum.
Secondly, if you do sign up for this or any fixed rate deal and then prices do fall, all is not necessarily lost. If you choose to move before the end of the fixed period then the savings you make may make paying the termination fee worthwhile.
Please note: Any rates or deals mentioned in this article were available at the time of writing.
Rate This Article
Click on a star to rate this article.
