What is a fixed price tariff and how does it work?
A fixed price tariff allows you to fix your unit rates and standing charge for a set period of time.
The prices are usually different to our Standard (Variable) tariff, but they are guaranteed to stay at the same rate for the duration of the tariff.
You have probably seen in the news that wholesale energy prices around the world have been rapidly increasing over the last 6 months, with UK gas prices rising by 70% in August alone. Unfortunately, this means that Ofgem has had to increase the Price Cap in October and it may well increase again in April 2022.
A fixed tariff gives you peace of mind as you pay a set price for your unit rates over the lifetime of your contract. It means that when energy prices are going up – as they are now – the unit price you pay stays the same regardless. Please remember the more you use, the more you will pay.
By fixing your price, you have more control over what you pay. You’re protected from future price rises for the length of your fixed deal and you may well save money over the long term too.
The difference on a standard variable tariff, is that the cost you would pay for your energy can go up and down. You wouldn't be protected from what’s happening in the energy markets and you can’t budget in the same way. So even if the standard variable tariff looks cheaper now, this may not be the case in a few weeks or months.
If you are an EDF customer, you can check your tariff and change or renew this easily in My Account