Experts are predicting price rises in energy this year, prompting some to suggest you consider fixing gas and electricity costs now.
It has been predicted to expect a price rise of up to 15% on energy bills as a result of unrest in the Middle East pushing up oil prices and the Japan earthquake, which could push up demand for gas.
Households on their provider's standard tariff are almost certainly paying too much as the typical cost of such a tariff is around £1,100 a year whereas the cheapest online deals start at around £900.
The benefit of households signing up for a fixed rate tariff is the security they offer, as prices cannot rise during the fixed term, which usually stretches for a year. The disadvantage is fixed tariffs tend to be more expensive than variable tariffs initially so if prices don't rise, as predicted, you'll be paying too much. Also, if prices do not rise for another six months, you could be paying too much in that interim period. Another option you may consider is a capped tariff where the price you pay can go down but it cannot rise.
Most householders do not think of switching their energy provider in the summer months when the heating is off and bills are low. But securing a competitive fixed rate or online tariff now could pay off if prices start to rise later this year, as predicted. Fixed-price deals are still on offer but they will not be around for long.
‘The best tariffs, particularly low cost fixed rates, are filling up fast and once they are oversubscribed, providers pull them,’ says Mark Todd, managing director at switching service energyhelpline.com.
‘If you’re looking to switch, you must act fast as prices are likely to start to rise by late summer.’ Todd recommends fixed rates for those who have serious concerns about rising bills.
Households who have never switched before stand to gain the most as Energyhelpline says the average household can save about £370 in the first year. Those prepared to pay by direct debit and take an online tariff – where bills are emailed rather than sent in the post – and dual-fuel deals secure the biggest savings.
Prices vary across the country and the cheapest provider for you will depend on where you live. Consumers can compare the best tariffs online through various comparison websites although be aware you need to search separately for fixed and non-fixed deals.
It has been predicted to expect a price rise of up to 15% on energy bills as a result of unrest in the Middle East pushing up oil prices and the Japan earthquake, which could push up demand for gas.
Households on their provider's standard tariff are almost certainly paying too much as the typical cost of such a tariff is around £1,100 a year whereas the cheapest online deals start at around £900.
The benefit of households signing up for a fixed rate tariff is the security they offer, as prices cannot rise during the fixed term, which usually stretches for a year. The disadvantage is fixed tariffs tend to be more expensive than variable tariffs initially so if prices don't rise, as predicted, you'll be paying too much. Also, if prices do not rise for another six months, you could be paying too much in that interim period. Another option you may consider is a capped tariff where the price you pay can go down but it cannot rise.
Most householders do not think of switching their energy provider in the summer months when the heating is off and bills are low. But securing a competitive fixed rate or online tariff now could pay off if prices start to rise later this year, as predicted. Fixed-price deals are still on offer but they will not be around for long.
‘The best tariffs, particularly low cost fixed rates, are filling up fast and once they are oversubscribed, providers pull them,’ says Mark Todd, managing director at switching service energyhelpline.com.
‘If you’re looking to switch, you must act fast as prices are likely to start to rise by late summer.’ Todd recommends fixed rates for those who have serious concerns about rising bills.
Households who have never switched before stand to gain the most as Energyhelpline says the average household can save about £370 in the first year. Those prepared to pay by direct debit and take an online tariff – where bills are emailed rather than sent in the post – and dual-fuel deals secure the biggest savings.
Prices vary across the country and the cheapest provider for you will depend on where you live. Consumers can compare the best tariffs online through various comparison websites although be aware you need to search separately for fixed and non-fixed deals.
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