Are fixed price energy deals worth it?
Not right now, according to North East Heating Solutions managing director Howard Klineberg
Howard’s company specialises in energy efficient electrical heating systems. He says:
“Only a few months ago you had to go to a small supplier to get the best energy deal. Now that’s changed. They’ve dragged their feet, but, to be fair, the vast majority of big energy companies have followed suit and dropped their prices. In fact, one of the cheapest electricity providers right now is N Power.”
On the other hand, some of the old fixed rate deals that are coming to an end were genuinely good deals. If you’re leaving one of those contracts now you may be tempted to jump straight into another one. But do your homework first. Just because your bills may go down doesn’t automatically make another fixed deal the best option.
How to calculate the cheapest energy
“First of all, you’ve got to understand that it’s not about what you pay per month,” says Howard. “Every energy supplier publishes a comparison tariff which consists of their daily standing charge and their per kilowatt price. These figures are the key to getting the best price. Look out for them and use them when searching for the cheapest provider.”
Howard also advises not to be fooled into using the supplier’s ‘average monthly bill’ figure. All that tells you is what other people spend. What you need is the daily standing charge and per kilowatt price, otherwise known as the comparison tariff or tariff comparison rate.
The company with the lowest comparison tariff is the one to go for, unless there are particular restrictions that you don’t like the look of.
You’ll find the tariff comparison rate on your energy bill.