Consumers warned against locking into costly fixed rate energy tariffs

With winter now upon us it is not surprising that many people are getting concerned about their energy bills, and this is made even worse by the fact that energy usage prices are set to soar with the energy giants increasing their prices and adding the financial burden that many households are already experiencing. Scottish and Southern Energy has already announced an increase of 9 percent from the start of December, which could see the average annual bill rising by almost £70 a year.

Officials have said that it is likely that more of the UK’s energy giants will follow suit and increase their prices. However, they have also said that consumers should resist the temptation to lock themselves into costly fixed price energy deals, as this way they could end up paying hundreds of pounds extra each year. It is claimed that fixed tariffs are around 27 percent higher than online tariffs, and this could add over £230 to the average annual energy bill.

EDF Energy announced yesterday that it would be freezing standard gas and electricity prices until March 2011. However, the annual cost of this comes to £1098 a year, compared to £867 a year for its best online tariff, reflecting a difference of 27 percent.

Ann Robinson from the price comparison service uswitch.com said: ‘Fixed tariffs can be expensive; it is only worth paying the extra if you are confident prices will increase by that much. There are two key steps to keeping a lid on your energy bills – make your home more energy efficient, and switch to a competitive energy plan so you pay less for the energy you use. This could save around £422 per year.’

Tags: EDF, tariff, fixed rate, officials, price, Renewable energy, Ann Robinson