A fixed-rate energy tariff can be the best way you can have a great energy deal on the market. But when a fixed-rate energy contract comes to an end, it’s a good idea to make a switch quickly to avoid overpaying the energy bills. Remember that if you fail to switch energy suppliers or tariffs, your current energy supplier can automatically roll it over to a more expensive electricity and gas tariff. This is the reason why you should always compare energy deals with Utility Bidder to check for the best prices suitable for your business. This page explains why you need to switch after the expiry of your energy tariff.
Things you should do when your energy tariff is about to end
In most cases, you may not have to pay exit fees to switch energy suppliers, especially if you decide to do this within the open window. Therefore, you need to notify your current energy supplier about your intentions before the expiry of your energy contract.
This allows you to have the time to find and switch to a new energy plan before your energy supplier rolls you over to a standard plan. It’s worth noting that a standard plan is usually more expensive than a fixed-rate tariff.
When your energy supplier sends you a notification within this open window, you can decide to switch without paying cancellation or exit fees. The best way to do this is to work with a reputable energy broker. An energy broker can find you excellent energy deals. Regardless of whether or not you want to find a renewable energy supplier, an energy broker can save you money by finding the best energy deals. After all, energy brokers work with a variety of energy suppliers.
Nowadays, there are now shorter switching times, but switching energy suppliers can sometimes take a few days that including a cooling-off period. It’s worth noting that once your energy supplier knows that you intend to switch, they cannot roll you into a more expensive tariff.
The notification from your current energy supplier can inform you about cheaper energy tariffs, though they tend to be only from your energy supplier. This is the reason why it’s crucial to compare energy suppliers with accredited comparison websites.
There is also a good chance that you can compare energy tariffs but still can't find any cheaper energy plan than the one you are on now. This is where the fixed-rate energy plans are appealing because they can lock you into a cheap rate for a longer period.
If this happens to you, it’s still a good idea to switch the energy tariff or supplier. In any case, your cheap-price plan will still expire and your energy supplier can roll you over onto a standard rate tariff. As explained earlier, a standard rate tariff is always more expensive than the one you were paying. Also, it can be a more expensive energy plan than the rest of the energy plans on the market.
Types of energy tariffs
Finding a cheaper energy tariff usually depends on several factors. Some of these factors include your energy consumption, your location, and the current energy plan. You can find a wide range of energy deals on the market.
One of these energy tariffs is the fixed energy plan. You can choose to switch to another fixed-rate energy tariff so that you can rest assured that the rates cannot change during the duration of the energy contract. If you are not pleased with an energy plan that comes with an exit fee or you are uncomfortable with the new energy supplier or there is a better energy deal, then you can visit energy comparison websites. There are various fixed-rate energy plans that don’t include an early exit fee.
Another energy plan is called the variable rate energy tariffs. In some cases, variable-rate energy tariffs can be the cheapest energy deals. However, you should note that you may not be protected if the energy supplier increases its prices. This is especially true when it comes to dealing with small energy suppliers. Small energy suppliers can be affected by some changes happening to the wholesale electricity and gas market. This can cause them to take a more reactive action to wholesale changes and can increase energy prices.
There is also a renewable energy plan that is increasingly becoming popular with many businesses. Therefore, if you want to be environmentally friendly, you can find many energy suppliers who are providing energy plans that come from renewable energy sources. The good thing is that renewable energy plans are usually competitively priced.
The best way to lower your energy costs
To get the most value for each kWh you utilize, you need to make sure that you have the cheapest energy plan. There are also other ways you can lower energy costs.
A cheaper energy plan can save you money, so you need to utilize less energy. You can do some simple changes around your house, such as reducing your thermostat setting even by a single degree or draught-proofing the windows and doors. This can make a huge difference, though larger investments tend to male a significant difference in energy cost savings.
The first step you can make to reduce energy costs is to insulate your property. For example, loft insulation can be the cheapest and easiest to install. Regardless of whether or not you have insulation, it’s crucial to check if you have the right standards of insulation in your house. It can also be important to have more floor and wall insulation for your house.
Keep in mind that you need to compare a fixed price tariff and energy projection. For instance, when you have a fixed energy plan, the comparison websites tend to utilize a personal projection. Simply put, a personal projection refers to the estimated future cost of energy for the following 12 months.
You should note that this calculation assumes that you may not switch when your fixed energy deal expires. Also, it can utilize the same rollover plan rates to determine the energy usage that is blended with the current rates.
