With energy prices going up all the time, many consumers are wondering what they can do to limit the impact of future rises. One strategy is to reduce energy consumption – which has major environmental benefits as well. However, while this will lower overall energy bills, it still won’t eliminate the shock of a sudden price hike.
Is there any way of making sure that your energy bills are predictable – just like you know your mortgage payments will stay the same until you have to renew?
The good news is that there is.
Fixed-price tariffs with EDF
For consumers that are looking to lock in energy prices, a fixed-price tariff may be just the ticket. Companies such as EDF provide their customers with the option of paying the same rate for energy over a number of years – for instance, the company has a tariff known as the, which locks in electricity unit prices until the end of May, 2018. They also have shorter term lock-ins, such as Blue+Price Promise, which lasts until the end of March 2016.
Are you locking in today’s prices?
In short, no you’re not.
Because EDF needs to make profits, they can’t lock in your current price of for three years or more. However, what they can do is to try to smooth out that price and protect you from unexpected rises. You can expect to pay about 25% more initially than just staying with a regular rate, but that gives you three years or more of price protection. When you consider that electricity rates went up by around 37% between October 2010 and November 2013, that starts to sound fairly interesting.
Related: How to switch to EDF Energy.
At the same time, while you are locking in electricity prices, you are not locked into the deal if conditions change.
The company allows its customers to terminate the contract at any time – you are free to switch to another supplier without paying any penalties. So, if energy prices rise more slowly or you find a better price elsewhere, you can take advantage of it without suffering any consequences.
A low-carbon alternative
The other advantage of the EDF Blue tariffs is that they use low-carbon energy. In the case of its Blue tariffs, it uses 100% nuclear power, which results in zero carbon emissions. However, if you have concerns about nuclear power, you may want to take this into account before signing up.
Note that EDF does also offer a Renewable tariff if you’ll want to avoid nuclear power – this uses 100% renewable resources, such as wind power.