Energy tariff comparison site U-switch warns that long term energy prices fixes are starting to creep up in price.

3rd July 2013

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U-switch says that EDF Energy has launched the longest fixed price energy deal on the market enabling consumers to lock in their energy price until the end of November 2016.

The new plan will cost consumers £1,350 a year on average which is £32 a year more expensive than npower’s Price Fix September 2016, previously the longest fix on the market.

This is £215 more expensive than the cheapest plan on the market, which is also fixed price, however it offers over two years extra protection from potential price hikes with no cancellation fees.

The new Blue + Price Freeeeze November 2016 tariff will enable consumers to fix their energy prices for over three years.

With price rises last winter and continued uncertainty in the energy market, three in ten switchers have been opting for fixed price tariffs. The new EDF Energy plan offers long-term price security with no exit fees, but at £1,350 a year, this security now comes at a cost says U-switch.

The plan comes in at just £3 a year cheaper than the average standard plan for customers paying by cash or cheque, one of the most expensive types of tariff on the market. However, at the time of its launch in May, npower’s Price Fix September 2016 offered the same length of protection (41 months) and no cancellation fees for £1,318 a year, £32 a year less – a telling sign that a premium is creeping back onto fixed priced plans. In addition, EDF Energy has removed its Blue + Price Promise February 2015 and replaced it with the Blue + Price Promise September 2014, which at £1,210 a year is £18 a year more expensive and almost half a year shorter than its predecessor.

U-switch says many consumers might be willing to hedge their bets and go for one of the cheaper plans on the market. Fortunately there are a number of competitive short and mid-term fixed price plans available, which could give consumers the protection they want for a fraction of the cost. In fact, the cheapest tariff on the market, Flow Energy’s Thames Fixed Online Sept 2014 is fixed until September 2014 and costs £1,135 a year, a saving of £215 against the new EDF Energy plan. However it comes with a £30 cancellation fee per fuel.

The new EDF Energy Blue + Price Promise September 2014 which was also launched today costs £1,210 a year – £140 cheaper than its long-term counterpart and also comes without cancellation fees. While only protecting consumers for fifteen months, this might be more appealing to those looking for a comfortable middle ground between protection and value for money.

Type of plan Tariff name Cost Fixed until
Average standard (cash and cheque) N/A £1,353 N/A
Average standard (direct debit) N/A £1,265 N/A
Cheapest variable SSE Discount Energy Bonus October 2014 (with paperless billing) £1,146 N/A
Cheapest fixed Flow Energy’s Thames Fixed Online Sept 2014 £1,135* 31/8/2014
Cheapest fixed no cancellation fees npower’s Online Price Fix February 2015 £1,181 28/02/2015
Second longest fix, plus no cancellation fees npower’s Price Fix September 2016 £1,318 30/9/2016
Longest-term fix, plus no cancellation fees Bue + Price Freeeeze November 2016 £1,350 30/11/2016

 

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