Fix your gas and electricity bills
When you are on a capped energy tariff the price you pay for your gas and electricity remains the same from the point your tariff begins, up to an end date specified by your gas and electricity supplier. Non-capped tariffs leave you open to any energy price changes that are introduced by suppliers and can mean that you are only on the original rates for a limited period. If you switch to a capped tariff you are protecting yourself against any increases in gas and electricity unit rates that may occur. Many customers prefer to be on a capped tariff as it means that they can forget about the electricity and gas prices until the end of the capped period and have the peace of mind that comes from choosing a set of prices that are frozen.
Fixed price gas and electricity
If you have signed up to a fixed or capped price plan (where your rate is locked in for a set period of time), you may have to pay a cancellation fee if you switch. The fee will depend on the exact terms of your selected energy tariff. Despite any charge involved, you may still be saving money by switching electricity and gas supplier. If you refer to your supplier’s contract it will give details of any cancellation fee, if applicable. You will then need to take this into account when you do a price comparison.
Wholesale gas and electricity costs
Fixed price gas and electricity tariffs are particularly attractive when wholesale prices are rising. When wholesale energy prices continue to climb, it is normally only a matter of time before the energy suppliers pass these rises on to customers. This is a good time to go for a fixed tariff.
When wholesale energy prices are falling, we would suggest to customers that they consider other tariffs so that they will get the benefit when gas and electricity savings are passed on by the suppliers.