Time's up for fixed energy tariffs - where to now?

Published:

10/07/2009

Topic:

Press Release,Gas & Electricity

Brits who fixed their utility bills this time last year should now be scouring the market for the next best alternative to avoid paying over the odds, says moneysupermarket.com.

• npower and Scottish Power fixed deals ending soon
• In July 2008 70 per cent of switchers opted for a fixed tariff
• British Gas WebSaver 3 currently best online deal

Brits who fixed their utility bills this time last year should now be scouring the market for the next best alternative to avoid paying over the odds, says moneysupermarket.com.

Research from the UK's leading price comparison site reveals customers who have fixed deals expiring soon should look to swap at least four weeks before the termination date of the deal to avoid moving to a more expensive tariff. npower's One Tariff fixed deal comes to an end in a few weeks and these customers could see their bills jump by £231 a year if they revert to a standard deal. Scottish Power's Fixed Price 2009 deal ends on August 31 and these customers could see their bills rise by £340 a year.

Scott Byrom, utilities manager at price comparison site moneysupermarket.com, said: "Fixed rate deals were in vogue last year - 70 per cent of our customers who swapped provider in July 2008 chose a "fixed" energy tariff saving themselves an average of £134.50 a year against a back drop of sharply rising prices, Ofgem research also found that around 4.6 million people are on a price guarantee tariff of some sort³. Bill payers need to be aware that the big increases they could face when their current deal ends could wipe out any savings that they made when they fixed last year. Timing is crucial when proactively looking for a new energy product, move off your fixed rate too early and you could face termination fees of up to £75.  Move too late and you might find yourself automatically switched to the standard deal or locked into a less attractive fixed deal which isn't the best as we move into autumn and winter weather.

"Fixing again now may not be the best option for the majority of bill payers, falling prices mean online deals offer better value - WebSaver 3 from British Gas for example is the best value tariff at £1,018 a year.  Brits suffered unprecedented price hikes last year, 47 per cent for gas and 28 per cent for electricity, and for many 'fixing' their energy bills was the best way to mitigate these escalating costs.  Since then, however, energy prices have fallen and customers who act now can bag decent savings - it takes just seconds to compare energy providers but the savings can run into hundreds of pounds. The whole process is easy and hassle free."

-Ends-
 

Notes to Editors            

¹Popular 2008 fixed deals:

Fixed deals due to end:

Energy Provider	Tariff Name	End Date	Recommended switch date*	Saving against provider's standard
Npower	One Tariff	31-Jul-09	3-Jul-09	£231.02
Scottish Power	Fixed Price 2009	31-Aug-09	3-Aug-09	£340.69
Other fixed deals due to end in 2009...
EDF	Price Freeze 2009	30-Sep-09	2-Sep-09	£20.47
Scottish Power	Fixed Price Energy Oct 2009	30-Sep-09	2-Sep-09	£268.08
E.ON	Price Protection v16	1-Oct-09	3-Sep-09	£134.58
E.ON	Price Protection v17	1-Oct-09	3-Sep-09	£92.25
EDF	Price Protection 2009	31-Oct-09	3-Oct-09	-£40.02
E.ON	Fixed Price 2009	1-Nov-09	4-Oct-09	£0.96
Scottish Power	Fixed Price Energy Dec 2009	30-Nov-09	2-Nov-09	£149.21
British Gas	Price Guarantee	31-Dec-09	3-Dec-09	£130.79
Npower	Price Protector 2010	31-Dec-09	3-Dec-09	-£64.70

*This date is 4-weeks (28-days) prior to the End Date to allow sufficient time for your application to be processed.

** This saving represents the cost saving against the provider's Standard deal.

² Early Termination fees:

Provider	Tariff	Tariff End Date	Termination Fees
British Gas	Price Guarantee	31-Dec-09	£75
E.ON	Price Protection v16	1-Oct-09	£35
E.ON	Price Protection v17	1-Oct-09	£35
E.ON	Fixed Price 2009	1-Nov-09	£35
EDF	Price Protection 2009	31-Oct-09	£50
EDF	Price Freeze 2009	30-Sep-09	£50
Npower	One Tariff	31-Jul-09	£50
Npower	Price Protector 2010	31-Dec-09	£50
Scottish Power	Fixed Price 2009	31-Aug-09	£50
Scottish Power	Fixed Price Energy Oct 2009	30-Sep-09	£50
Scottish Power	Fixed Price Energy Dec 2009	30-Nov-09	£50

³ Ofgem figures on the amount of UK consumers on a Fixed Tariff deal

http://www.ofgem.gov.uk/Markets/RetMkts/ensuppro/Documents1/Energy%20Supply%20Probe%20-%20Initial%20Findings%20Report.pdf Page 41. 3.31. We estimate that around 4.6 million customers (over 1 in 7 households) are on a price guarantee tariff of some form.

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