What is a fixed energy tariff?
Fixed energy tariffs guarantee a certain gas or electricity unit price will stay the same for a set period of time. These fixed deals sometimes include a set price for your standing rate, which is the amount you pay to cover the supplier's cost for delivering electricity and gas to customers and for servicing the network. When you choose a fixed rate tariff it's worth checking whether the standing rate has been included in the fixed price, as this could otherwise increase or decrease.
If you choose a fixed rate tariff, you won't benefit from any price cuts your energy supplier makes during the fixed period. These tariffs may also charge an exit fee if you choose to leave before the fixed tariff period expires.
Fixed price tariffs give peace of mind to those worried about future energy price rises. However, they can be up to 20% more expensive than non-fixed tariffs.
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