Fixed Energy Tariffs: Why You Should Know About Your Expiration Date
Many UK fixed energy tariffs ended in 2015. But, they will continue to expire as 2016 continues. So, even if yours hasn’t yet, it will. It’s not a matter of if, but rather when. So, here’s what you need to know to avoid higher renewal rates.
Check The Date For Your Renewal
Check the renewal date for your particular tariffs. Not all energy companies are cutting customers off from a good deal, but some are. Here is a list of the ones that are, and the dates when the discounts will end.
You’ll see some pretty big names in there, including npower, British Gas, EDF Energy, Flow Energy, and First Utility. Scottish Power also has expirations on fixed pricing. And, while many suppliers do not charge a fee for switching, some do, so check with your supplier.
Look Over Your Options
There are many different options out there on the market right now. Most of them involve a fixed pricing scheme, but not all of them.
Green Energy Tariff
A green energy tariff is exactly what it sounds like. Your service provider provides you with energy sourced from environmentally-friendly sources or they contribute towards environmental schemes on your behalf. Usually, there’s no fee for switching, but there may be. It’s a great option if you’re concerned about your environmental impact and want to reduce it.
If you’re not sure about whether this makes sense for you, you’ll have to find out about green energy tariffs on energy supplier sites or comparison sites. Pay attention to the charge, as sometimes green energy tariffs cost more than their conventional counterpart.
photo/Revisorweb
Fixed Tariff
A fixed tariff is one where the charge is known in advance. You pay a fixed price the whole contact term. If you leave before the contract date is up, you will be charged a fee for leaving early. This option is usually a cheaper one than most others, but it does come with that commitment. So, it’s only really good for those who want the certainty about their bill and who are committed to staying at a residence for the entire length of the contract term.
You will not benefit from any energy cuts, however, while on this tariff. So, if prices plummet, you’ll pay the difference to the energy supplier. On the flip side, you will pay less when prices surge.
Online Tariff
An online tariff is a fixed form of tariff that lets you pay your bill and manage your energy online. You will be asked to send meter readings online and you’ll get paperless bills. It usually means that your bills will arrive as email attachments and you’ll be responsible for all of the data entry and record keeping.
It’s not for everyone, but it is the most cost-effective solution for UK residents.
Pre-Payment Tariff
A pre-payment tariff is one where you pay the energy company in advance for service. It’s a scheme that benefits those who have trouble managing their finances and need help sorting out their bills every month. the prepayment allows you to use up an “energy store” that you pay for before you use it, instead of paying in arrears like other plans.
Guest Author :
Abby Thornton is a personal finance consultant with a financial background in the public sector. In her spare time she spreads the word on how individuals can save more of their hard earned money. Her articles mainly appear on saving money and personal finance related blogs.
