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Energy Providers Compete to Give Longest Fixed Rate Tariffs

By Anne Lewis-Schneider

The UK’s energy providing firms are battling each other to give the longest and best fixed rate tariff ahead of price increases that are expected to come into effect at the end of the summer months. Energy prices are feared to rise by 5 to 10% over the autumn months which will mean an increase of around £142 per month to the average power consumer. Power companies are competing to come up with fixed term tariffs to lure new customers to jump ship to fix their energy bills for the long term.

Deals currently being offered include one from Scottish Power fixing gas and electricity at around £1,350 per annum until the beginning of 2017, with donations going to Cancer Research UK at £10 a year for four years. There is however a £50 fee for canceling. EDF Energy is offering similar rates until 2016 without the exit clause. The lowest tariff on offer at the moment is from MS Energy Fix and Save to run to September 2014. The carrot that they are dangling is £211 less per annum than Scottish Power and has a £50 cancellation penalty.

An online energy source has said that if one wants to donate to charity it would be best to do so directly and that people should choose a tariff that meets their personal needs. She went on to say that she thought that a fixed tariff was the best route to take and that a whole lot depends on how long a consumer wants to be locked in to fixed prices. She said that a factor to consider is that Scottish Power, although more expensive may be the better of the deals in the long run.

Whichever way you choose it bodes well that you look at your individual needs before deciding which scheme, you opt into. It remains to be seen what other offers are put on the table before the promised and expected tariff increases are brought into effect at the beginning of the autumn months preceding the coming winter season. One thing is for sure and that is that prices will increase, which means that those customers that do not opt in to a tariff fixing offer will definitely be paying more on their monthly bills which could have a huge impact on lower income families.

 





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