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What does 'fixed' actually mean?

Sorry if this is a stupid question. But does this mean I pay for example, £70 a month fixed rate for unlimited electricity? Or does the fixed mean up to a certain amount of units? I'm really puzzled by this. I try and save as much electric as possible and go round switching lights out after my OH etc...but does this matter if the price is fixed?

Comments

  • Premier_2
    Premier_2 Posts: 15,141 Forumite
    10,000 Posts Combo Breaker
    It simply means the tariff is fixed. (so the prices won't vary)

    The more you use, the more you will still pay.
    "Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 2010
  • OK, thanks....I still don't understand though :o Is tariff not the price? So if it is fixed....how will I pay more the more I use?
  • Yolina
    Yolina Posts: 2,262 Forumite
    edited 13 December 2011 at 10:22PM
    The price of the unit is fixed so that can't increase during the term of the contact. You will pay for the number of units used.

    So for example, let's say that your unit price is fixed at 12p - if electricity prices go up then your unit price will still remain at 12p because you are on a fixed tariff. If you use 100 units in a week, that will cost you £12 but if you use 150 units in a week that will cost you £18
    Now free from the incompetence of vodafail
  • I get it now - thanks! :D
  • Well, not quite....

    With most tarifs, 'fixed' does not actually mean fixed as in it won't increase. It usually means that it's set to remain at a certain percentage below, or above, the standard tarif. Hence, if the standard tarif increases, the fixed one will too.

    Check your particular tarif.
  • Well, not quite....

    With most tarifs, 'fixed' does not actually mean fixed as in it won't increase. It usually means that it's set to remain at a certain percentage below, or above, the standard tarif. Hence, if the standard tarif increases, the fixed one will too.

    Check your particular tarif.


    is the case sometime i fixed term mean run for a certian amount of time or fixed discount meen will run at 2% below fix at 2 % most are fixed unit rates alway check small print tho
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