What does fixed tariff mean?

davewes

I signed up to a EDF fixed rate tariff under the Blue + Price Promise having been with the company for around 10 years. It was set at £86/month till September 2014 on my history. Now the premium has been raised to £117/month because my usage has risen so much. Doesn't it always after the Winter period? So what does "fixed" mean?
EDF regularly informs me when another company can save me more than £52/year so to me the deal is based on price. Yet I am told the tariff is fixed but the premium is not. I'm confused.

Southend1

The price you pay per unit of energy is fixed but the amount you use may be different from the estimated amount. The payment you make is therefore reviewed at intervals to take account of your actual usage.

Cardew

I assume some people must think that a 'Fixed Tariff' is similar to the old 'Staywarm' tariff(that ceased last year). On that tariff, for a fixed monthly payment, you could use as much gas/electricity as you wanted.


As explained above, a fixed tariff simply means that the charges will not increase for the duration of the tariff.

matelodave

Not quite true - the unit COST of the electricty or standing charge won't change but the CHARGES will vary according to your consumption - ie you'll still pay the same price per unit but you be charged for the number of units you use.
Use more you pay more, use less and you pay less

Cardew

Semantics rule;)

macman

Or, to put it more simply, it's not an 'all you can eat for a fiver' type of tariff.
OP, you are using more than was originally estimated, so your DD has increased.