Energy provider npower is now offering fixed fuel tariffs. These give protection to consumers against changes in price, including hikes and drops, for the next two years.
Currently called npower Price Fix December 2015, the organisation will keep the tariff fixed until that date (December 2015). It is estimated this would cost the average household £1,305 a year.
Likewise, an Online Price Fix is also on offer, but this has a much shorter term, only covering until May next year (2014), but is said to cost the same average family £1,226.
Of course, this isn’t the only fixed tariff on the market. New legislation is looking to change tariffs in the future, potentially limiting each provider to four, fixed tariffs. The upside to such deals is that, for their duration, they spare you from any inflation or price increases.
Unfortunately, not all prices can be fixed, as we have seen with petrol, food and utility bills. Dealing with essentials such as rent and bills can be difficult enough, but when an emergency occurs and you need some extra cash, a same day payday loan could tide you over until payday. Providing repayments can be made quickly, these can be a useful option.
On the downside, fixed tariffs do not grant you any price drops, although many could argue this seems unlikely in the current climate. Many of these also have fixed penalty charges should you drop out early.
Comparing the Market
For anyone looking to save money, it helps to know how this tariff currently compares to the larger market, too. British Gas offers a similar Price Promise, which runs until April 2015. The average for this was given as £1,391 for each a year. It’s close, but its £86 more expensive than npower’s longer scheme.
There are other options that are cheaper, but these don’t cover as long a length of time. EDF Blue +Energy offer a Prime Promise until June 2014 costing an average of £1,181.94.
Ovo’s New Energy offers a fixed deal at £1,172 although this only covers 12 months fixed security from when you switch. First Utility offers a fixed rate for dual-fuel. The iSave Fixed v7 runs for a fixed rate until September 2014, costing an average of £1,195.