When shopping around for electric tariffs consumers often have two main options: fixed tariffs or variable tariffs. Figuring out which one can lead to a cheap electric bill for you can be tricky. Either option has the capacity to work very well for different energy needs, but fixed tariffs are looking like the better of the two in the current market, where prices are expected to rise. Green energy tariffs

What Are Fixed Tariffs?

Fixed price electricity tariffs mean that your energy costs will not go up even if prices rise. Many consumers appreciate the security and stability offered by such a plan. Fixed energy tariffs vary from company to company and there are many different options when it comes to how long your prices will remain fixed. Plans offer fixed tariffs anywhere from as short as one year to as long as four years. Within this period of time you will be protected against energy price hikes. This makes it much easier to make financial plans without having to worry about unexpected charges in an unstable market.

Though fixed price tariffs sound attractive, they are a bit of a gamble and might not always pay off. They protect you from rising prices but leave you out of the benefits if prices happen to drop. You could end up paying more than necessary for electricity, and if you want to change to variable tariffs then you might have to pay a cancellation fee for your fixed tariff plan. However, many electric companies do not have an early cancellation fee, and even when they do, these fees are not usually too high. Another disadvantage of fixed tariffs is that, if you look around and do some price comparisons, you will see that fixed price tariffs are usually more expensive than what many online plans have to offer.

Despite these risks and the potential that you will be paying more in the beginning, fixed price tariffs are a very safe choice for the long run. Electricity prices are currently uncertain and predicted to rise by many experts, among them the E.ON chief executive. A few of the UK’s big energy suppliers have already announced that they will need to raise prices, and it is likely that more will do so in the coming years.
Fixed rate tariffs, even though usually slightly more expensive than online tariffs and variable plans, are nevertheless very competitive and are beginning to look increasingly attractive as a way to ensure some security in the coming years. This is exactly what consumers are finding, as more are signing up for fixed price plans than in the previous months.

Current Deals
“The Big Six,” Britain’s largest energy companies, are also getting on board. They are offering many great fixed tariff plans for consumers. The competition going on between these companies is extremely beneficial, as it is giving consumers many more options and the ability to find the fixed rate that is just right for them. It is giving them cheap and attractive deals now, as well as a guarantee for the future should prices go up.

One very important thing to keep in mind when considering a fixed tariff plan is the fact that it is the price per unit of energy which is fixed, not the cost of your overall energy usage. This makes it possible to continue saving on your electric bill even with a fixed tariff deal. Go ahead and turn off lights and electronics when not in use, insulate your home, and switch to low energy light-bulbs. Making your home energy efficient and getting into energy-saving habits will reflect on your energy bill even if your tariffs are fixed.

Now’s the Time

All of these things considered, now looks like a very good time to switch to a fixed rate, as this guarantees a cheap electric bill and peace of mind in the future. Shop around for the best available plan. The current state of competition between the big energy companies should leave you with some very appealing options. Remember that prices vary from region to region, and so asking your friends who live in different areas about their plan might not be the best way to go. Get online and check out some price comparison tools to find the best fixed tariff option for you.

Sam Jones the author recommends that readers wanting to know more about energy tariffs visit the prices comparison website, http://www.uswitch.com/gas-electricity/.

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