Should you choose a shorter fixed price energy deal?

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For some, staying with your energy provider is an easier choice than searching through comparison sites trying to find a better deal; however, even if you feel that you have a pretty good deal, there are always ways to save money, with the latest news showing that short-term energy tariffs could save you more than their long-term counterparts.

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Finding a cheaper deal

When it comes to finding energy deals, there are usually two types of customer. One is happy to save the hassle of switching and stay with their current company, while the other is happy to search and search to save money.

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Whilst there are still measures in place that can benefit those who have stuck with an energy company past their initial tariff term, it is usually in your best interest to search around for a good deal.

It no longer matters whether you have a smart meter or whether you manually give readings from your electric meter box, the tariff you are on is the main source of savings. Whilst it has always seemed good sense to find a fixed tariff and lock it down for a three- to five-year period, figures show that this may not necessarily be the most cost-effective.

Save money with short-term deals

A recent study by Which? found that customers were more likely to save money when opting for one-year fixed deals in comparison with those of three years or more. Whilst it can be reassuring to know that your rate will remain the same for the term of your tariff, taking the time to search for new deals each year can result in cheaper tariffs.

Many of these new tariffs will come with a smart meter – if you do not already have one – whilst others will still require you to give the readings from your gas and electric meter box manually; however, the fixed rate will remain the same. Data from the last three years shows that one-year fixed deals consistently come out the cheapest, so it makes sense to make the switch to save money.

Customers should also be aware of rising rates, which could result in increased prices each year when their time to switch comes around. Do your research first and choose wisely.

Hi, I am Russell Chowdhury; I am an entrepreneur, father, mentor and adventurer passionate about life. At this moment, I am working with depression and anxiety; here is my blogs how to recover from anxiety and how to fight with anxiety. I hope everyone will like my blogs.

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