IS it beeter to be In fixed rate or Varablie

aayush

Hi
I live in 2 bed flat and it all electric and my monthly bill is around £55.00 month as we try to keep usage low as possible

so wanted to find out if fixed rate and use as much or Variable with the same thing

matelodave

Fixed rate doesn't mean you can use what you like, you still have to pay for every unit that you use.
It means that the price per kwh will not change during the period of the fixed contract whereas with a variable tariff the unit rate can be increased (or even decrease) whenever the supplier chooses.

Sometimes a variable rate can be marginally cheaper but it's subject to change. A fixed rate means you wont get any increases during the period of the fixed deal and can make it easier to budget. You might also be better off if over the period of your fix even if it is slightly more expensive than a variable as there is usually at least one price rise a year. You have to take a gamble on how long a fix you want and how much you think the prices will rise. Your guess is as good as anyone else's but a fix that covers two winters is usually a fairly safe bet anything longer is becoming more of a gamble and can be quite expensive in the short term.

You should enter your annual consumption in kwh (not in pounds) into a couple of comparison sites to see what deals there are out there. Are your payments based on actual meter reads or estimates. You do need to know exactly how much you use in kwh rather than how much you pay otherwise you won't get an accurate estimate.