Gas and electricity constitute a major expense for most households and with winter approaching suppliers are launching new deals, many of them with fixed tariffs.
These deals became popular in the past decade as energy bills clocked up double-digit annual increases.
Last week saw the launch of a three-year fixed tariff by Scottish Power called Fixed Price Energy January 2017. It rivals the other longest fixed-price deal currently on offer, which is EDF Energy’s Blue Price Freeze, where the term extends to November 2016.
Both deals would cost £1,350 a year based on the average pattern of household usage.
As with all decisions to fix rates, there is an element of risk for the consumer. In return for the certainty that their bill will not rise over the period, the buyer pays a premium. The comparison website uSwitch says today’s cheapest one-year deal is M&S Energy’s Fix & Save tariff, costing £1,139 on a comparable basis.