Recent rises in wholesale energy prices have sparked debate over what consumers will soon be paying for their gas and electricity.
Some experts believe energy prices will rise in the short-term, whilst others are less convinced, sticking to the line that short-term energy prices are uncertain. So, is fixing your energy bills now a good option to safeguard against possible future price rises?
Why opt for a fixed tariff?
While any rise in wholesale energy prices is potentially bad news for consumers, one way to protect against future price fluctuations is by opting for a fixed tariff, bringing stability to your energy bills. Bills are fixed at a set rate, usually for either one or two years, protecting you against price rises over a specified period.
Fixed rate deals are becoming cheaper
Fixed rate deals are likely to become more prevalent as we approach a period of uncertainty surrounding energy price movements. The good news is that, if you are considering locking into the security of a fixed tariff, rates are at their lowest for two years – and still represent very good value compared to standard tariffs.
At the same time, additional savings can be made by opting for an internet fixed rate deal - and by paying via direct debit, all of which are likely to cut the cost of your bills. For more tips on cutting the cost of your energy bills, see our guide here.
Act now to secure yourself a fixed tariff
However, there are signs that these competitive fixed rate deals might not be around for long. At the start of the month, Ovo Energy – once one of the cheapest energy providers in the market - increased the cost of its New Energy Fixed online tariff.
Npower also put up its energy prices earlier this month, and with other providers expected to follow suit, it's a case of acting sooner rather than later if you do want to get onto a fixed rated deal.
Do your research
Given the speculation that prices could rise over the summer, the key is to compare suppliers based on your individual circumstances and find a tariff that best suits your consumption.
By switching suppliers, households can slash a tidy sum off their energy bills, but with so many tariffs on the market, it can be difficult to know which is best, especially as gas and electricity prices vary between regions and depend on consumption. Follow this link to work out what you could save by switching.
