High energy costs are a major concern for households in Northern Ireland, especially during the winter months when people need to keep their homes warm. The fluctuating nature of energy prices, which depend on the wholesale cost of energy, can lead to unpredictable increases or decreases in energy rates throughout the year. To combat this issue, customers have the option to choose a fixed rate contract with an energy supplier, with Budget Energy, Click Energy, and SSE Airtricity being three of the five suppliers in Northern Ireland that offer this option.
The Consumer Council for Northern Ireland has highlighted both the advantages and disadvantages of opting for a fixed rate contract. One of the main advantages is price stability, as customers will know exactly how much they will be paying for their energy, making budgeting easier. Additionally, fixed rate contracts protect customers from price increases if energy prices rise during the contract period, potentially saving them money. The regularity of a fixed rate contract also allows for long-term planning and peace of mind.
However, there are also drawbacks to consider. If wholesale energy prices fall, customers on fixed rate contracts could end up paying more than those on other available tariffs that have decreased in price. Furthermore, fixed rate plans lock customers into a contract, preventing them from changing their minds without incurring a cost. Some suppliers, like SSE Airtricity, charge an exit fee of £40 if customers want to cancel their contract.
The Consumer Council advises customers to be aware of when their fixed rate contracts are coming to an end. Once the contract period is over, customers will be rolled over to their supplier’s default tariff, which is typically more expensive. Customers should receive end-of-contract letters from their supplier, informing them of their options. Before accepting another fixed rate tariff, customers are encouraged to compare all available electricity tariffs online using the Consumer Council’s comparison table. They can also use the Consumer Council’s comparison tool to automatically calculate potential savings with other suppliers.
If customers find a cheaper deal with another electricity supplier, it may be time to consider switching. Being proactive about exploring different options can help customers save money on their energy bills in the long run. Stay informed about the latest news and updates by visiting the Belfast Live homepage and signing up for the daily newsletter.
