Are fixed energy plans just a lot of hot air or will they save you money?


With rises in energy bills figuring heavily in the media over the past few months, you may have heard about the option of switching to a fixed energy plan. You may think that fixed plans are too good to be true and not worth pursuing with your energy supplier. However, you may be able to take advantage of dramatic savings by signing up for a fixed energy plan.

While it means you wouldn’t be able to benefit from the rare occasions when energy prices drop, you will have a sense of security in knowing that you won’t have to worry about soaring prices either. A fixed energy plan makes sense, especially during these turbulent financial times as it’s a way to protect your pocket from one more spike in prices that you simply cannot afford.

Your rate is locked in.

When you contact your energy supplier you can discuss the fixed energy tariffs they have available. Once you’ve established the price your supplier can offer and decided that you’d like to sign up, you will be set on that plan for the length of your contract. There will be no nasty surprises with your bills, even if your supplier increases rates across the board.

You will avoid extreme increases.

The trend for wholesale energy supply has been steadily increasing prices with little prospect of change in the opposite direction. You may have friends and family who are on different contracts and who may have lower energy prices, but chances are they will be hit hard at peak usage times or if there is a spike in pricing. It may appear that those who are on a variable plan are saving money. However, if they were to compare their rates across the entire year, they would find they are actually paying more due to these price spikes which cause price increases.

Rates are only going up.

Financial experts will agree that wholesale energy prices are set to continue rising. These rises are caused by changes in supply and demand and global events. In a time of increased fluctuations, it makes sense to avoid financial stress and lock into a fixed rate for a period of time that works for you. When your contract duration is up, you can take advantage of any promotions that are being offered by your supplier.

You’ll find it much easier to manage your budget.

A fixed energy plan will let you manage your budget better as you’ll know exactly what amount you’ll be paying every month. Staying on a variable plan may make you vulnerable to spikes in the market and you may be faced with large bills that you could be struggling to pay. Choosing to switch to a fixed plan will take this worry away.

A fixed price plan is the sensible choice, allowing you to retain a sense of control over an unpredictable area.

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The Skint Scot 2015